7th July 2020

Why you need to outsource your HR?

How many of you get home after work, feeling exhausted, stressed, and overwhelmed? In our daily lives there are many factors playing part. As a business owner you try to do everything yourself, why? Because you want to save cost. But do you really save cost, or are you trying to confuse your subconsciousness. This article will go in around the following subjects.

  1. What does outsource mean for your business?
  2. Comparing In house vs Outsourcing HR
  3. Disadvantage and Advantage
  4. The choice

1.                 When does outsource mean for your business?

Any small business owner is fully responsible for their business. Anything that happens in their business affects them. It does not matter if it is to accomplishing goals for clients or providing customer services. Then there are employee management, such as creating work, setting up schedules, assisting in training, get employees paid, keeping updated with legislation, doing marketing. In all essence having responsibilities like this on your own as a business owner can get a bit much. And that is the reason why many business owners go home, exhausted, stressed, and over-whelmed.

From a small – medium and even a large business point of view, HR becomes an important part to any business.  Human resource professionals (be it in-house or outsourced) manage a wide level of responsibility based on the needs of the organisation.

  • Hiring processes of recruiting
  • Interviewing potential employees,
  • Orientation and training of workers,
  • Manage the relationship between employee and employer
  • Completing payroll and managing benefits
  • Implement policy changes

Studies have shown the comfortable work environment and adequate pay and benefits, is directly proportional to the longevity of an employee. By working with human resource professionals, you can build and maintain harmony between employees in a safe environment where individuals feel valued.

2.                 Comparing In house vs Outsourcing HR

I would like to compare apples (Inhouse HR) with pears (Outsource HR). It is important to see an estimate of what you may be paying. The below figure is just an estimation of amounts. The amount may differ depending on the industry.

Let create a scenario in that you are small to medium size business. You are in need of someone to assist you with HR related functions. As you are not the expert in the field and neither is you financial manager. You decided that you would like to an in-house HR as you feel it might be the best option for your business. Keep the scenario in your mind as you read through the article.

As a business owner when you employ an individual within your business, it is your responsibility to make sure to give them everything they need to assist them to do their job.

Cellphone: Your in house HR needs a work cellphone, for making business calls when they are not in the office.

Car or petrol allowance: This amount may differ, but companies either pay according to the kilometres the HR has driven or they provide them with a company car. Which is still tax deductable.

Training: They are still an employee and it is still the companies duty to upskill their employees. Therefore it is necessary to onboard your new HR professional or if they have been there for some time, you need to ensure that they are updated with the newest legislation.

Salary: They get a monthly salary and to some extend even a bonus

Benefits: Medical aid, pension

I cannot say the same for when you outsource an HR. In many cases you only pay for the project or the service they need to provide you.

If you add everything up, you may pay an in-house HR a monthly salary, were as an outsourced HR you pay toward the project for that month. The difference in saving is an colossal amount of many. Again remember that this amount may be different depending on. But R 298 000 is a lot of many especially if you are a small-to-medium size business.



Cellphone                                 R500

Car or petrol allowance         R 5000

Training                                    R 10000

Salary                                         R 18000

Benefits                                      R 4000

Bonus                                         R18000

Per month - R27 500

Per Year - R358 000


Self phone                                  R 0

Car or petrol allowance           R 0

Training                                     R 0

Project/Services fee                 R 5000

Benefits                                      R 0

Bonus                                          R 0

Per month - R 5000

Per Year - R 60 000

Difference BETWEEN inhouse and outhouse - R 298 000


Everything we get into contact with has PROSE and CONS. In this article we only touch on a few of these elements.


  • Expensive
  • Employee
  • Time
  • Absence


  • Location
  • Communication gaps


  • Solve problems immediately
  • Culture - Collaboration
  • Personal relationships


  • Cheaper
  • Save on time
  • Expert
  • Support
  • NO politics

5. The choice

Let make it easy for you 🙂

 Remember we are the expert in the field

We can Reduce Risk

We can help you Saves Time

Our core Focus is on business

We can Reduce Cost to your company

Leave a Reply

Copyright 2021 Inspirante Labour Consultancy - Terms & Conditions Apply - Designed ByThe Wikid Agency
Shopping cart0
There are no products in the cart!
Continue shopping
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram