Business owners face multiple challenges in running their businesses. They handle everything from meeting customer needs to ensure compliance. While these tasks require attention, some businesses find it difficult to prioritize them since they also have core business functions to focus on.
One of the best ways to stay on top of regulatory compliance needs is to outsource these functions to another firm.
But how exactly does outsourcing work, and what advantages does it offer? Let’s dig deeper into this efficient business practice and how Sprout can help your company focus on what really matters.
What is Outsourcing?
Outsourcing involves hiring a third-party organization to handle your services or functions so you can prioritize core operations and save on labor costs and other expenses.
The Benefits of Outsourcing
Some outsourcing firms offer managed HR and payroll services. Working with these companies presents the following benefits.
Stay Compliant and Avoid Hefty Fines
Violating business and labor-related regulations come with costly fines. For example, companies that breach the Philippine Data Privacy Act could be fined up to ₱5,000,000 depending on their violations. Your outsourcing partner can help you address problems related to violations that could result in fines.
Optimized Compliance Management
Laws and policies change over time, so you’ll need to stay up-to-date with compliance requirements. An outsourcing provider will guide you through regulatory changes and revise existing policies to reflect those developments. Essentially, they help you understand how compliance works in your industry, the impact on your organization, and how to manage these requirements properly.
Keep Business Expenses Low
In-house recruitment of experts can be costly since it covers compensation, equipment, software, training, and other expenses. By leveraging an outsourced provider, you can work together with an expert to lower your business expenses.
Why Outsource Key Business Functions?
Apart from cutting costs and focusing on core operations, firms outsource to:
- Allocate internal resources to meet new objectives.
- Perform critical yet time-consuming tasks more efficiently.
- Use external resources as much as possible.
- Share potential risks with a partner.
Ultimately, businesses work with an outsourcing partner because they want to grow and succeed in the ever-changing workplace.
When Should You Consider Outsourcing Business Functions?
If completing certain tasks takes longer than expected or if you end up spending more time on less critical tasks, you may need external help. But as you find an outsourcing provider, remember that outsourcing is a partnership. It’s about managing relationships instead of simply establishing a set of service-level agreements.
However, sustaining such relationships is tougher than establishing service levels and relationships. Open communication and clear expectations are needed for a successful outsourcing partnership. Your outsourcing provider should understand your needs, particularly what the project entails and what you want to achieve.
How is Outsourcing Connected to Your Stakeholders?
So far, we’ve covered how outsourcing HR and payroll can benefit your business. But it’s also relevant to stakeholders in different ways. Here’s how outsourcing helps these individuals handle their roles.
|Outsourced experts will help expedite crucial processes. Outsourced & licensed experts will handle discrepancies and ensure transparency.
|HR Admins (Influencers)
|HR admins can pass on specific, time-consuming tasks to an outsourcing firm. They can also seek expert help for technical tasks. Outsourcing administrative tasks means HR admins can address discrepancies, employee engagement, and other critical aspects of HR.
|Managers (Decision Makers)
|Outsourcing provides managers with faster HR processes for faster data-driven decision-making. Their in-house teams become more focused on their work.
|Business Owners (Decision Makers)
|Faster processes mean more efficient work and happier employees. Outsourcing can help business owners achieve these goals. Moreover, working with a third-party provider shifts a business owner’s focus to more important functions while saving on business costs.
The Sprout Advantage
Sprout helps Philippine businesses improve their processes and pave their way to success. We help you streamline every stage of the employee lifecycle, from recruitment to employee development. Part of that includes easing the burden of administrative work for you through outsourcing.
Let us help you uncover problems and work with experts to create the best solutions for your company’s specific needs.
Our HR and payroll outsourcing services provide your business with the most accurate and efficient services, which include expert consultations, data-driven recommendations, outsourced tasks, and compliance housekeeping.
Outsourcing Made Easy with Sprout
Outsourcing HRM and payroll services means more time for business growth. Furthermore, it can help you manage risks, especially compliance-related ones. Partnering with Sprout helps you achieve these goals and thrive in the competitive and volatile business landscape.
Want a more detailed breakdown of our services? Check out our latest ebook, What You Need to Know About HR Compliance: Helping Great Employers Effectively Mitigate Risk on our Thought Leadership page. You may also visit our blog for more insights on HR and payroll management.