To keep your business running steadily during the COVID-19 pandemic is quite tricky. This is the period of time to activate survival mode. Especially, when “New Normal” is forcing you to adjust to harder situations. There are some things that you may need to apply for some adjustments and recalibration.
One of the crucial things to reconsider carefully is how you manage your company’s finances. In the decision-making process, you may need to recount all of the variables that involve in the running of your business. This means that your current financial situation is also a huge variable to reach into the decision. One of those variables that strongly relates to finances is the size of the employee and its management.
So how does HR Outsourcing come in handy to help you survive this pandemic? Well, the answer can be varied but deeply rooted in the finances, which is saving money. Here are some choices you may need to consider:
It is to cut the salary of your employees and avoid lay off as much as possible, which could be permanent or temporary until your financial state is stable again. HR Outsourcing agency that you can hire to execute, this is the party that is responsible for doing the job. It will reduce your headache by delegating the responsibility to the agency. The agency will be the one who will do the explanation and announce it officially to your employees. Beside that responsibility, there are some other ‘headaches’ that you can hand over to the agency:
- Taxes adjustment
- Benefits adjustment
- Dispute and legal issue (if necessary)
- Contract adjustment
Furthermore, you would not need to notify the tax office and fill out a bunch of forms and documents that are needed for the adjustment of the salary. If there’s any dispute from your employees, you would not need to be the front-liner because the agency will do the job for you.
When your last decision is to restructure the organization, HR outsourcing is your best tool. Before using an agency, you may give the responsibility of hiring employees to your in-house HR team. Another responsibility that you have to do is related to the payment, which covers counting the salary, taxes, allowances, etc. Doing this requires you to have extra members of the internal Finances team. This means that you have to pay for more employees to accomplish the jobs.
So, how can an HR Outsourcing agency be an alternative for you when you really have to decide to downsize the number of your employees? The answer is pretty simple: it can be both of your external HR and Finances department. Other than the stuff mentioned above (on the deduction of salary option): the paperwork that you could skip, there is another benefit you can’t turn your head away from. It is the price that you pay for the agency to do the colossal job is not going to be as expensive as paying more personnel.
The clear benefit you would get by hiring an HR Outsourcing agency is that you save up more budgets. So when your product/service demand is going down, you can still run relatively stable by reducing some expenses that can’t be covered during the crisis. When choosing to restructure your organization requires you to simplify or to merge some roles, you can also consult this with the agency so you can maximize the effectiveness you expect, even more. The agency will give some advice and, of course, finding the right talents in accordance with your needs. The sharing-risk activities that you can do with the agency you hire can minimize and manage your loss during the crisis.
If you would like to know more about how HR Outsourcing work and its benefit you could make an inquiry to us through here.