HR outsourcing can be a key factor in resolving pertinent employee-related issues for small businesses, providing support in effective employee recruitment, retention, and management areas in a cost-effective manner.

1. Five Advantages of HR
Outsourcing for SMEs

2. Should SMEs outsource HR functions?
Small and medium enterprises (SMEs) spend around one
fourth of their productive time to handle employee-related
paperwork and wide-ranging areas including employee
recruitment, insurance, payroll, and benefits, as also
compliance and insurance etc.
It makes sense for SMEs to engage outsourcing services to
manage increasingly complex HR processes in a time and cost-effective
manner.

3. What are the key advantages of HR outsourcing?
 Reduces time and effort for talent acquisition
Provides profitable labor arbitrage
Encourages business innovation and productivity
Ensures effective employee management
Improves adherence to risk & compliance regulations

4. HR outsourcing reduces time and effort for talent
acquisition
Acquiring skilled staff is a major HR function, but is
inordinately time and effort-intensive. Tapping the
expertise of HR service providers can provide ready
access to databases of rigorously screened skilled
professionals across domains.
Tying up with remote staffing agencies allows you to
bring specialized offshore virtual workforce on-board
to manage the local skill-deficit.

5. HR outsourcing provides profitable labor arbitrage
Labor arbitrage can lead to tremendous cost benefits,
particularly if it is off shored to developing economies.
HR managers earn a median annual salary of $98,550 in
the US, while an experienced HR professional in a
country like India is likely to cost a fraction of this
amount. Along with it, the staffing agencies bring their
industry-specific expertise and latest technology,
without any investment.

6. HR outsourcing encourages business innovation and
productivity
A number of HR tasks involve tedious functions such as
tax filing, leave policies, payroll processing, and benefits
claims processing.
It makes sense for SMEs to outsource these functions,
and leverage their precious time in business innovation
and strategizing.

7. HR outsourcing ensures effective employee
management
Recruiting a good employee is as difficult as retaining them.
According to industry experts, over 50 % of people recruited in to
an organization are likely to leave within 2 years.
Outsourcing complex functions such as working out suitable
employee compensation and benefit packages, and supporting
employee performance through training and mentoring can
ensure healthy employee management.

8. HR outsourcing improves adherence to risk &
compliance regulations
There are a number of regulations regarding employee
insurance claims handling, sexual harassment, wrongful
termination, safety violations etc. SMEs struggle to
adhere to these compliances and their constant
updates, as they cannot afford costly lawsuits.
Hiring a compliance expert specializing in these areas
can allow SMEs to mitigate risks at a fraction of the cost.

9. VirtualEmployee.com: A pioneering remote HR
service provider
VirtualEmployee.com is a remote staffing platform in India providing
dedicated skilled employees for HR solutions at competitive rates.
It addresses critical concerns regarding outsourcing HR processes by
offering:
Readymade databases of skilled HR employees for urgent hire
Domain-specific HR expertise and experience
Dedicated remote HR employees working in specified time zone
Confidentiality and privacy of company data under vigilant managers

10. Get competent HR professionals by engaging
VirtualEmployee.com as your remote staffing partner.
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