Efficiently handled human resource management is crucial for a company’s success. Productivity and revenue experience a boost when teams are balanced and company cultures are positive.
Handling human resources and managing the various regulations of HR and people operations require significant time and effort. Companies with employees have important duties like recruiting new staff, handling payrolls, addressing complaints, and ensuring legal compliance.
Although small businesses can manage HR and recruiting themselves in the beginning, larger companies usually require internal HR staff or external HR support services as they expand. Entrepreneurs should prioritize expanding their businesses and managing daily activities, and although HR operations remain part of their business, there are specific indicators that suggest it may be necessary to seek assistance.
You are not sure who is supposed to be managing employee operations
Many businesses delegate their HR tasks to various team members, frequently led by the company owner or an office manager. Sometimes, companies might assign HR tasks to department heads like sales or marketing managers, instead of having one person or team in charge of all HR duties and functions.
As a business owner, you likely want to participate in the hiring process to some extent. Hiring managers, who are the people that a new employee will be reporting to, usually spearhead recruitment initiatives in companies that do not have an HR department when there is a job opening in their team. When this occurs, it can quickly become unclear to understand exactly who is accountable for hiring. Additionally, redundancies may arise, thus affecting the efficiency and productivity of your teams.
Considering the idea of hiring HR and recruiting support is valuable when determining who is accountable for these tasks. If you don’t have a specific individual in charge of recruitment, you are at a risk of
- Providing a subpar candidate experience
- Not getting applications due to being overlooked or missed
- Duplicative activities (multiple individuals contacting the same candidates, duplicating job postings, etc)
- Reduced efficiency
- A game of shifting responsibility for recruitment and HR tasks
HR tasks are seeping into other employees time
HR tasks can be demanding and difficult, particularly if the individual in charge lacks expertise in the area. Therefore, managing these tasks could distract your team(s) from their original job responsibilities.
Imagine this situation your marketing manager is looking for a new digital marketing coordinator to add to the team. To fill this role, the manager needs to
- Outline the duties and responsibilities of the position, set a salary range or pay scale, and develop a job posting.
- Publish the job opening on job boards and advertise the position. This may involve promoting on social media, buying placements, and other methods.
- Review candidates and select who to invite for an interview. This might also involve preparing for, overseeing, and evaluating tests like personality/fit assessments, or skills-based assignments;
- Conduct interviews with job applicants, choose appropriate questions to ask, and decide which candidate(s) to invite for a second interview or offer a job to.
- Draft and dispatch a job offer, manage negotiations, and finalize the hiring procedure.
- Develop, implement, and oversee the process of integrating new employees into the company, which involves providing training, setting up necessary equipment and software, managing training sessions, handling paperwork for new hires (such as tax forms and insurance paperwork), among other tasks.
All this sounds like a full time job in itself and maybe overwhelming.
The typical expense linked to a new staff member is costly. This amount comprises the expenses for recruiting and the costs for the process of hiring! When you take into account the decrease in productivity caused by your current team being distracted by hiring tasks, the expenses rise significantly.
Teaming up with outsourced hr by Avensure can boost your return on investment for hiring while decreasing the chances of reduced productivity when bringing in new team members.
You’re having a hard time recruiting top talent.
Every employer faces competition in attracting candidates because every company seeks to recruit top talent. If you’re having difficulty attracting highly skilled individuals, there could be various factors at play.
To begin with, engaging in recruitment takes up a lot of time (and money). It can be difficult to find time in your busy schedule to focus on recruiting tasks without a designated recruiter or recruitment team.
Moreover, there are additional elements involved in creating job postings that appeal to top candidates. Professional recruiters and HR professionals are knowledgeable about the requirements and strategies for creating appealing job descriptions, selecting the right platforms for posting them, and effectively promoting your company as a preferred employer.
You’re experiencing high rates of employee turnover or attrition
Another indication that your HR and recruiting department requires assistance is the challenge of retaining top talent, in addition to the struggle of finding them initially.
Companies should strive for a 10% attrition rate, yet the majority of organizations have rates ranging from 12 to 20%, If turnover is higher than usual, it may indicate a need for assistance, despite various reasons attributing to turnover.
If the culture within your company is unpleasant, employees will not be motivated to stay. Receiving HR assistance in handling cultural grievances and fostering a more upbeat and beneficial organizational culture can have a significant impact.
At times, cultural problems occur when inadequate hiring processes happen, due to those responsible lacking the necessary skills to make sound decisions.
Talking about hiring mistakes sometimes a bad match can result in turnover on its own. This situation may arise when a staff member has been hired by your organization, but later discovers they are not a good fit for their assigned position. Occasionally, this occurs due to hiring teams that lack experience in adequately or accurately conveying the role or company culture. At times, it occurs regardless.
An inadequate onboarding process can lead to increased turnover rates by giving new employees a negative start, affecting their perception of the company.
Although having assistance with HR and recruitment won’t magically solve these problems, these issues can certainly be more effectively managed with the expertise and experience that HR outsourcing agencies offer.