Answers to Commonly Asked Questions About Outsourcing Your HR and Labor

Construction & Contractors Blog

Many companies today are outsourcing their human resources or HR department and their labor; they might have an office manager on staff who monitors their benefits program and other such assorted duties but will have a labor company manage all the hiring and firing for them. They may even simply have a labor company provide them with personnel who stay on the payroll of the labor company. If you're thinking about this type of arrangement for your business, you might wonder if it's the right choice for you. Note a few commonly asked questions here and this might help you determine how to move forward with your labor needs.

1. How is it really cheaper?

You may have heard that outsourcing your labor itself is cheaper overall but may be looking at the hourly rates and fees and thinking that the numbers don't add up. However, consider all the intangibles about maintaining your own HR department and having to hire new personnel. You need to take time to run ads online or elsewhere, go through resumes, interview candidates, test them, run background checks, and then train them. A labor hire company manages all these things for you so that the candidates you're sent, either for a final interview or just to start working, are trained and tested and checked out. In the long run, you save time by outsourcing your HR and labor, and that's time you can spend on other aspects of running your business and earning a profit.

2. Does the quality of work suffer from outsourcing?

You may think that, in order to have quality staff on hand, you need to have long-term employees who are familiar with your way of doing business. This may be true for some situations, but note that hired labor may actually be of higher quality. They may be trained on updated computer programs or machinery and equipment that is used in production facilities, or may know of alternative methods of accounting that could actually help your business. By outsourcing your labor to a company that provides you with more knowledgeable personnel, you may find that you actually get better quality labor.

3. How do other employees respond to outsourcing?

If you're concerned about how employees will respond to your decision to outsource, you might remind them that this doesn't mean you plan on getting rid of all personnel. You may simply need to hire new personnel, day laborers, temporary laborers, and the like, and outsourcing certain positions can enhance your company's bottom line.

31 May 2016