Manpower outsourcing services offer a lot of benefits for small businesses. This is probably due to the fact that a small business that is just in its beginning stages spending money on activities which would not generate direct revenue can be really frustrating.
Arranging HR activities like selecting & recruiting specialized labors, making monthly payrolls, filing employee taxes and other manpower related tasks can be time-consuming and tiring for the SMEs in their early stages. In such situations, outsourcing of manpower services can prove quite beneficial for the business and it can help the entrepreneurs to devote their time dedicatedly to the business.
No doubt manpower outsourcing not only saves costs, it offers better quality services, skills, and knowledge which otherwise would be difficult to arrange for small business. However, there is a correct time when small companies should be looking at hiring manpower outsourcing services. Today Ms. Kanika Kohli, Vice President of Trendsetters Facilities & Technical Services (TFTS), largest outsourcers of specialized manpower and licensed labour to northern India shares warning signs would let SME know that it is time for them to hand over this manpower related responsibility to an external expert.
1. Money constraints:
An initial set up of a business requires investments and one generally has minimal expectations for immediate on those investments. Hence the amount of time spent by entrepreneurs, managers, and employees on work that is not directly related to revenue generation apparently start showing signs of slowing down the revenue generation in small companies. If your company is facing such a situation and it is tough to manage the money then maybe it is time to consider other options. Outsourcing manpower, payroll management, employee tax submissions and other related tasks, can relieve the company of this burden and let its people devote their time to tasks which would keep the ball rolling in terms of money.
2. Limited exposure
A person who is skilled and experienced in recruiting and handling employees & labours will understand the key aspects of their hiring, training, salary computation, labour lay, employee tax computations, etc. If your company is doing these tasks on its own but lately facing tax penalties due to incorrect or non-timely tax deposit, labour law issues, labour issues then consider giving these tasks to an outside expert.
3. Business Scaling
In the beginning of your business, you may have worked with a group of closely known associates, some previously known trusted employees and with friends or relative and your business has clearly shown a positive sign and is showing the scope of an upward rise.
This also means that your business now would need more employees to support the business scaling and a dedicated human resource department who can look at all the aspects of the new employees. If the company evaluates that investment on establishing full-scale HR department is too big and desires to limit its investment on HR department then outsourcing is a good option.