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Why small businesses and start-ups need to use human resources firms?


Posted by Iris Data Driven Agency

about 1 year ago

Many small businesses and start-up companies will require HR support but will not want the expense of hiring a full-time human resources employee. This is the reason why many businesses choose to partner with Human Resources firms, to becomes a realistic and cost-effective option.  

1. Introduce about Human Resources firms

A human resources company ​is a comprehensive range of HR support services for small businesses and start-up companies. Human resources firms can help businesses find, evaluate, hire, and control the workforce and make sure they always have the right people for your upcoming projects. Besides that, HR outsourcing help business with filling the temporary vacancy with totally meet the requirements.

Why Human Resources important to any kind of business?

The HR needs for small businesses and start-up companies can vary depending on several different factors. Most popular of all is the main and priority aim of small business is to keep costs as low as possible, so they will only spend on business-critical items. Eventually, some start-up companies think that HR is not a business-critical necessity.

However, the right level of HR support for small businesses will ensure that the risks associated with a costly employee dispute or tribunal claim are minimized by ensuring that the business meets its legal employment-related obligations. Outsourcing HR services can help small businesses with implementing policies, procedures, and employment contracts as a framework to safeguard the business.

What HR firms can help businesses?

Human resources company for small businesses and start-up owners needs to meet several essential parameters. The reason why small businesses need to try HR services including:

  • Pragmatic and tailored advice from a qualified and expert HR professional

  • Businesses have the ability to use the HR support as and when this is required

  • Value for money in terms of the support and service provided

Let’s take a closer look at each of these human resources firms’ services below, so you can understand how they can contribute to your broader business goals. 

2. Which services that a human resources company usually offers?

There’re several different HR service packages for small businesses which usually include:

  • Salary management services - Outsourcing salary management service in Vietnam is a reasonable choice for businesses that want to save costs and time.

  • Human resources staffing - Whether your business needs to hire one or hundreds of employees, from casual workers to technical experts, using an HR Search Firm will help your business to save time and money.

  • HR executive recruitment services - Senior managers playing a key role in the business, but choosing the right people at a high level is extremely difficult. Then outsourcing an executive search firm, in this case, will be a good idea.

  • Training services, etc.

3. Benefits when choosing outsourcing HR

Multiple statistics support the importance of good HR for small businesses. Here are just a few:

  • Small and start-up businesses that invest in a strong candidate experience increase their quality of hires by 70%.

  • 75% of workers would stay longer at a business that listens to and addresses their concerns.

  • Disengaged workers are about double as likely as engaged employees to seek new jobs.

  • The variety and quality of HR services will be enhanced.

  • The internal HR team can have more time to focus on core business functions.

  • The internal HR team can utilize internal resources more effectively and efficiently.

4. How much does it cost to outsource HR in Vietnam?

Recruitment of local and foreign employees in Vietnam requires compliance with the laws and regulations specified by the government, like minimum wage, employer’s obligations, payroll, taxation, social insurance, and work permit application.

According to provisions on labour recruitment fees, published on (Quy dinh ve phi tuyen dung lao dong). An employee registering to find a job through a job placement agency must also submit an application file to the employment agency and, if it receives a job, must pay a fee for the placement of a job to the job placement agency.

If the employers outsourcing the recruitment firm services, they have to pay for them no more than 30% of the first month's salary stated in the employment contract.

In case you need a fully consulting about the cost when using senior recruitment services, then Navigos Search’s consultant team can help you deal with it. We are one of the leading executive search firms in Vietnam. We help businesses in contingency and retained search services. You can find out more about our service information on our website or contact us for help. 

5. Conclusion

Choosing a human resources company is not just about cost savings ways for small businesses and start-up owners. Human Resources Outsourcing can also help the business focus on what is important to the organization. If your business is currently serious about how to lower the hiring cost but still needs support in HR management, so choosing to partner with human resources firms may be a good thing to consider. For senior and - level recruitment outsourcing consulting, please get in touch with Navigos Search. We always here to support foreign and domestic companies to get their best senior candidates.

Besides, the small businesses and start-ups learn more about human resources recruiter

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