Why Outsource HR for Your Business?

Human resource (HR) plays a pivotal role in bridging the business’ objectives and employees’ performance in any company, by ensuring that talent in the organisation is always aligned with the goals and growth of the company. The role of HR includes recruiting new talents, supporting employees’ learning and development, managing relationships amongst employees, as well as administrative work like handling leave, payroll, compensation and benefits. With HR’s importance in any organisation, it’s a good idea to consider the various HR options available, whether in-house or outsourced. In this article, we share four sizeable benefits of outsourcing HR for your business in Singapore:

#1 Controls costs 

Hiring in-house HR staff requires the company to provide salaries, benefits, workspaces, as well as cover taxes. Instead of hiring a large team of HR staff, outsourcing certain HR processes is a good way to help your business to cut down on costs, without overloading your current HR staff. 

For instance, think about the HR payroll processes in your company. HR staff are not only responsible for handling payslips, they are also in charge of providing analysis reports, writing yearly employee remuneration reports as required by Singapore authorities, and advising employees on their taxes and deductions. With so many processes in payroll that have to be handled by HR staff, on top of other HR functions like recruitment or leave management, it increases the possibility of error in payroll – which can affect your employees’ relationship with the company and create compliance issues. Using outsourced payroll services allows payroll processes to be handled with precision, decreasing error and removing the fines that come along with it. 

#2 Save time 

Rather than have your HR staff be cluttered with various administrative and transactional tasks, or busy figuring out an area of specialisation that they are unfamiliar with, outsourced HR services free up the time for them to focus on strategic and more critical plans for the company’s growth.  

Read more: Guide to HR outsourcing for businesses in Singapore

#3 Be supported by HR specialists 

A big reason why companies choose to outsource HR is to fill in gaps in HR specialism, like with work pass management or specialist recruitment. Companies can trust that outsourced HR specialists are equipped with updated industry knowledge to successfully apply, appeal, renew, or cancel employees’ work passes, as well as effectively recruit the best talent for the company. As such, outsourcing is the best way to take care of these niche areas of specialisation, as well as swiftly streamline your HR processes for the greatest efficiency.

#4 Manage compliance and risks

HR compliance in Singapore is ever-changing as regulations in the Employment Act are constantly being updated. HR needs to be familiar with changing regulations to ensure that compliance is always being met. For instance, the hiring process in Singapore needs to comply with the Fair Consideration Framework, which specifies how the selection process should be treated. Besides ensuring that the hiring process is compliant with Singapore’s regulations, HR has to ensure that employment records are submitted on time, as well as follow guidelines relating to employee’s hours, overtime and holiday pay etc. Outsourcing helps you to manage compliance and risks, staying on top of all statutory and regulatory requirements year after year. 


About CLA Global TS (formerly Nexia TS)
Founded in 1993, CLA Global TS (formerly known as Nexia T.S.), is an award-winning Asia-Centred Business Advisor. An independent member firm of CLA Global Network, CLA Global TS provides a full spectrum of professional services including, but not limited to Assurance & IPO Reporting, Tax, Risk Advisory, Valuation, Insolvency & Restructuring, Sustainability & Climate Change Advisory and more.

For more information, visit CLA-TS.com.

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