Today, companies that are rapidly moving from a few dozen employees to a few hundred are changing the organizational order of magnitude, face problems that are specific to each but have certain common points. Regulatory constraints change, the ways of working evolve, the culture of the company is transformed. And the risks multiply.
Many of these risks fall within the HR domain: the growing business must recruit quickly without being mistaken; HR must be trained effectively; its payroll system must be able to adapt in real time to the increase in staff. The company may be tempted to use outside providers to manage these aspects.
Three reasons atleast militate in this direction.
Smoothing Growth Levels
This is a common scenario: a developing company wakes up one day with small business tools to handle big business issues. An SME transforms into a few months in a group of more than 500 employees, with several sites, and is left with a range of tools and methods heterogeneous and unsuitable.
This is true in the case of internal growth, and even more so in the case of external growth – where there is also the question of bringing the tools and processes of the entities closer together. Take the example of a company of a few dozen people, which manages its payroll internally with an SME software, under the responsibility of an employee who also provides an accounting. The growth soon led him to publish more than a hundred payslips
Reduce Skill Rise Time
Second argument: a growing business, especially if it is an organic growth following the gain of one or more important markets, needs to deploy new skills quickly. This means recruiting employees in a hurry, who will have to be operational as quickly as possible. Time to competence becomes a crucial issue. It may be to train new employees in trades already practiced in the company to meet a new burden in the same field. But also, to acquire new professions – if the new market requires – and new transversal skills – including managerial skills, to supervise new teams.
Outsourcing can be an important asset in this race for operational competence. Entrusting a service provider with the management of the training will significantly lighten the administrative burden represented by this increase in skills while helping the company to orient itself through the financing channels and offers of the training organizations.
Reduce the Risk of Competence
Growth is often a phase of fragility for the company. It is a time when it is a bet on the future, and where it must temporarily mobilize more resources than it has at the moment “t” to meet growing demand. The departure of key employees in this type of period can have very negative consequences. Of course, if it is core business skills, there is not much to do: by definition, these are non-outsourcing skills. But an HRD with strong providers for recruitment, training, pay will be all the more available to avoid such incidents – focusing on the motivation of women and men – or, if they occur to face them.
Bottom Line
The scope and functions to be outsourced in priority naturally depend on the company, its activity, and sometimes also the chance of meetings. But the option is definitely worth considering.