If you are considering a new company, you may want to avoid the hassles, headaches, and burdens of building your HR infrastructure. The greats are doing it! Recently, in the early 1990s, HR outsourcing was a very small emerging option that was […]
If you are considering a new company, you may want to avoid the hassles, headaches, and burdens of building your HR infrastructure.
The greats are doing it!
Recently, in the early 1990s, HR outsourcing was a very small emerging option that was greeted with skepticism by large companies (over a billion in revenue). These early outsourcing companies didn’t have the tools, the routes, or the resources to meet the demands of their early customers, but with the vast improvements of the internet and workflow processes, in the early 2000s, human resources Outsourced had become a $ 165 billion industry.
Not only did it grow but it grew very well in terms of retention. An Accenture study in the mid-2000s had shown that more than 80% of companies that chose to outsource HR functions were satisfied at both the management and employee levels. During this period, Shell Oil Corporation was able to reduce HR infrastructure and overall HR costs by 40%, while improving employee retention and benefits.
Great, it works for the greats, what about startup?
With this in mind, anyone considering starting a business can have the freedom to stay focused on the business they are building, trying to meet compliance issues, policies, and finding all the right tools to track. all employee needs. This cumbersome task is time consuming and expensive.
With a little research and due diligence, a startup can identify cost-effective solutions that are now plug-n-play and will develop a partnership with their vendor. Many of the options in today’s market are well suited to grow as the underlying start-up grows.
Any look at the startup world today shows the great need to get HR right from the start rather than the insanity that seems to be in the news on a weekly basis when companies fail on this most critical problem in managing a business. business.
Cash is king!
As a start-up, it’s always important to keep cash for as long as possible. What many startups don’t see is that high cost investments in HR infrastructure have no ROI, these costs can be avoided by turning to the outsourcing company. Yes, there is still a cost, but it is spread over each new hire.
Two other cost-saving benefits that many are unaware of in today’s market are worker’s compensation and payroll financing. Each of these silver bullets can be a cash-saving lifeline for any new business.
With proper verification, all of these great tools can be a part of any startup that chooses to outsource its HR infrastructure.