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Faq – “Forever” Asked Question: Should Smes Use Hr Outsourcing Service?

In the world of crowded SMEs, is there any room for HR outsourcing services? What makes SMEs hesitant to reach out to these potential services?

Publication date
SMEs & Outsourcing
“Having too much on their plate” can exhaust companies.

Should SMEs turn to outsourcing?

To be competitive in the ever-changing market with a small workforce, SMEs have mastered their skill to maximize human resources to be able to deal with the different workloads. Besides, with the limited financial resource, many businesses also focus on investing in the equipment and ensuring operation. With these two specific requirements, although most SMEs' leaders are aware of the advantages of HR outsourcing services, they are still reluctant to reach out.

However, examining the benefits of HR outsourcing services, SMEs can have second thoughts. According to a survey, the cost of a bad hire can cost up to 17.000 USD/ year, and that is when HR outsourcing services can come in to close the gap.

Ms. Lý Ngọc Trân, HR Outsourcing Services Director of Talentnet shared:HR outsourcing is not only a cost-efficient human capital strategy, but also a great tool to support SMEs in business transformation. As HR outsourcing services providers will become the companions that offer SMEs both quick access to the abundant professional, dedicated workforce to fill up various positions within businesses, and numerous insightful advice for businesses to effectively manage their human capital”.

Ms. Tran also highlighted that HR outsourcing solutions are being tailored to meet individual needs of each SME in terms of upfront cost and they can also be upgraded as clients’ companies grow.

“With the development of the outsourcing market, service providers also provide different service packages tailored to various businesses’ sizes, needs, and budgets. SMEs can choose whatever service that is suitable to their current state of business to have a taste of what HR outsourcing can bring about without worrying about the pricey initial investment. This helps companies’ leaders to understand the service and decide whether they want to invest more in the future.” - Ms. Tran said.

Revealing benefits while maximizing cost

In fact, HR outsourcing services can help companies to save up to 90% compared to permanent employees as they can save the monthly cost of monthly compensation, equipment, training, offices, etc. If this number is not convincing enough, other long-term benefits for business might be able to make business leader rethink, which are the opportunity to have a qualify workforce and profit increasing as they can maximize their resources.

  • Opportunity to work with experts

Recruiting is difficult, being able to hunt an expert is even more difficult for SMEs. Reputable HR outsourcing services can help SMEs to solve this problem. With the advantage of having many experts from different industries such as IT, legal, payroll,etc, HR outsourcing services can support SMEs in elevating their work, opening opportunities to work with potential employees, and enriching the current talent pool.

In fact, 33% of SMEs said that their reason for using HR outsourcing services is that they can approach the global talent network without geographical constraint.

SMEs & Outsourcing
HR outsourcing services can open your door to millions of talents
  • Increase the chance to grow, reduce the pressure

Not only able to approach a qualified talent pool, HR can also be released from the pressure of administration duties and focus on developing strategy to develop internal teams, using technological tools such as outsourcing payroll and employee management. This can help to boost employee engagement by up to 75%. At the same time, HR can also have time for developing strategic training program, helping to increase sales. This is a meaningful aspect for SMEs that aim for expanding their production scale. Utilizing HRO service will help SMEs to finish specific strategies while maximizing their time and resources for the internal team to focus on other important activities.

“SMEs can utilize HR outsourcing services as a trustworthy companion, to shift their focus to more important roles such as clients, and making more valuable outcomes, supporting growing companies faster and stronger.” - Ms. Trân concluded. 

A simple yet efficient operation team can help SMEs to grow and expand sustainably. However, to open new opportunities, by using a trustworthy HR outsourcing services providers, companies can find more opportunities instead of trying to do everything by themselves.