The Top 5 Reasons to Outsource Your HR

One of Links International’s key services is HR outsourcing. We offer a comprehensive range of HR outsourcing services to facilitate your business needs and support your business, so that you no longer have to handle the strain on your own. We have been successfully managing HR solutions in Asia for a wide range of clients, from start-ups to MNCs, for over 10 years and have gained multiple awards for our outsourcing services, including “Best Payroll Outsourcing Partner” at the 2023 HR Vendors of the Year Awards.

What is HR Outsourcing?

HR Outsourcing is the process of delegating a company’s major business functions to third parties or external agencies. Outsourcing reduces the time and cost associated with staff working on administrative tasks. Companies can undertake outsourcing for a variety of reasons depending on their purpose and challenges encountered. While this may vary from company to company, outsourcing has become a core component of day-to-day business strategies. Rather than simply lowering costs, outsourcing providers possess very specialised systems that companies or its resources may not have.

The top 5 reasons that companies choose to outsource are:

  1. Reduce costs – HR Outsourcing has the potential to save the company money compared to using internal resources. With internal HR functions, the problem is often caused by insufficient back-up coverage or resource turnover. The cost of headcount can often be underestimated by calculating only the employee’s salary, without taking into consideration the cost of recruitment, training, compulsory and additional employee benefits such as medical insurance and annual leave. Salaries can also be quite costly in bigger cities, such as Hong Kong, and will tend to increase year by year. The cost calculation can therefore be fairly extensive and findings show that outsourcing HR can bring about substantial savings.
  2. Save time – Rather than having to deal with piles of admin queries such as pay slips and annual leave requests, this can all be centralised through a third party’s external portal. Links International’s HR Portal allows employees self-service access to their HR information. They can view pay slips or apply for annual leave from anywhere at any time.
  3. Improve Business Focus – One of the biggest obstacles that companies face is handling the essential aspects of running a business. A third reason that companies choose to outsource is so that they may continue to focus on their core business processes, while delegating time consuming processes to external agencies. Outsourcing lets others handle the time consuming, transactional and tedious tasks, while the company can continue to grow the business. By delegating responsibilities to external vendors, companies can perform functions that are difficult to manage, while still realising their benefits. One additional benefit companies will not need to focus on is the management of the process or the internal resource.
  4. Risk Management – Outsourcing HR functions reduces internal pressure and deflects it to the professionals. When HR is handled internally, if anything goes wrong, the company will be held accountable. For example, if you handle your own payroll, the company can be liable for any failure of non-compliance. Outsourcing vendors engage highly skilled and experienced professionals who are consistently updated with rules and legislations, enabling them to carry out their job more efficiently. Since HR involves sensitive information and the process may involve several parties, companies often choose to outsource in order to mitigate the risks of confidentiality exposure.
  5. Elevate your role – Perhaps the most important reason why companies choose to outsource their HR, is that, in so doing, HR professionals are able to elevate their role. HR is often considered a “nice to have, yet not essential” function of a business. This may be due to the fact that HR’s data is often viewed as unreliable, or that the data is not leveraged so solve strategic HR issues. By outsourcing, HR leaders are able to focus on higher value, strategic activities that make a difference to the business and ultimately lead to greater employee satisfaction.

Links International offers a broad range of HR outsourcing services, from payroll outsourcing, to visa processing, to contract management, and more. If you’re interested in outsourcing your HR processes, get an instant quote on our website now, or speak to one of our specialists and we can tailor a package to suit your exact requirements.