Outsourcing human resource (HR) functions can seem like a strange concept to many business owners who are unfamiliar with the nuances of this partnership. However, HR outsourcing in Singapore can result in lower employee turnover and faster business development when done correctly.

Outsourcing has grown in importance over the years as HR professionals search for ways to streamline and optimise their tasks. However, despite the growing prominence of HR outsourcing services, many still have reservations about using the service. This is mainly due to the fact that misconceptions surrounding HR outsourcing are rampant. To identify these misconceptions, here are 4 of the most common myths about HR outsourcing that should be debunked.

Myth #1: HR outsourcing is only for large companies

A prevalent misconception about HR outsourcing services is that they only benefit large enterprises or organisations. Allegedly, smaller businesses would be met with budget constraints and be unable to satisfy the requirements of some of the outsourcing firms.

However, the truth is your company can enjoy the benefits of top-notch HR outsourcing services no matter its size for as long as you choose the right provider. The right provider has the ability to meet your capacity and workload to scale. In essence, your company’s readiness to prioritise productivity and delegate to professionals, not its size, determines its need for HR outsourcing. 

Myth #2: HR outsourcing will cause you to lose control of your business

Some business owners believe that outsourcing will result in losing authority and control over their departments and overall operations. This is typically due to the misconception that outsourced personnel are not bound to the rules and regulations of their client’s organisation.

However, in reality, outsourcing clients will still retain their primary responsibilities as the head of the departments and the company. In other words, you will continue to be in charge of your employee’s performance and the company’s operations.

Myth #3: The outsourced firm will not understand your business

Many HR managers or leaders assume that outsourced HR providers are mere sleeping partners meant to perform only a couple of basic tasks and have little understanding of their client’s business.

However, this is not always the case. If you partner with the right outsourcing provider that works collaboratively, it can benefit your business. It can provide you with excellent advice, insights, and guidance to help you efficiently run your organisation.

Myth #4: Outsourcing is unnecessarily expensive

The assumption that hiring an outsourced HR staff will cost you much more than handling everything in-house is not always accurate. When you outsource HR services, you can earn significantly more than you spend depending on how you choose your outsourcing partner, your outsourcing objectives, and how you handle the outsourcing process.

In particular, you can rest assured that your outsourced HR services will be carried out efficiently and economically when you partner with the right provider. Long-term HR outsourcing could result in cost savings, better resource utilisation, and insights for your business.

Conclusion 

There are undoubtedly many misconceptions surrounding HR outsourcing services. By knowing what these myths are and the truths behind them, you can better identify whether HR outsourcing is a good fit for your company. In fact, business owners can make smarter decisions that foster the expansion and development of their enterprise with the correct and accurate information.

Enable Consulting is an agency to rely on if you are searching for the most dependable and efficient HR services provider. We offer a wide range of competitive and effective HR services in Singapore, spanning from HR systems to HR advisory and consultancy. To find out more about our services or discuss the requirements of your business, do not hesitate to get in touch with us anytime.