Five Reasons to Outsource Human Resources in a High Unemployment Market

New York Construction Workers Lunching on a CrossbeamIt is so easy to neglect the human resources needs of a business simply because it is seen as  a nice-to-have and a drain on the bottom line, especially with soaring unemployment.  But stop for a moment to consider the following five advantages:

1.    Being more profitable

The supply of labour may be high but the quality is low. In addition we have a severe mentality problem in South Africa where people openly say the want the money but not the responsibilities that comes with employment. Politicians brazenly promise new job opportunities without pausing to consider what the market needs. Educated smart people earn more because they contribute more to a business. Capitalism is based on the continuous value add chain and if the contribution is to provide manual labour, the pay cannot be much as mechanization is so much cheaper on the long run. Harvesting the human resources potential and talents of your current employees will result in the business being more profitable. People working together in a team and focusing their energy on a common goal are far more effective as the odd individual effort. Drive productivity, training and development and you will change attitudes and reduce costs.

2.    Proper recruitment and selection

Employers are frustrated because casual employment has fallen away. Any person employed nowadays is on a permanent basis and even fixed term contract workers may challenge their contracts at the CCMA.

The key is proper recruitment and selection. Find the right person with proven objective psychometric tests and other tools and invest in their training and development. Just conducting interviews is ridiculously ineffective and can only be meaningful if it is structured and in support of the evaluation.

Too often employers wish to dismiss and end an employment relationship to get rid of a problem, only to find the resurfacing of a similar situation elsewhere. Sometimes the behaviour of the employees are symptoms of something else that is wrong . Reduce the risk and expense of post dismissal litigation by getting an independent perspective of your business culture and climate.

3.    Induction

In the haste to get on with other things the induction process is grossly neglected. Due to poor schooling and other socio-development issues one cannot just accept that new employees will know what to do, understand the organization and its culture and fit in seamlessly. Induction is the only wat to standardize workplace ethics.

4.    Reclaiming your business

Surprisingly so for a country with high unemployment (some say as much as 36%), labour laws are inflexible and employers are cautious to expand. Unions are experienced and can run circles around employers, especially with collective bargaining. Any employer who had dealings at the CCMA will tell you they left despondently as settlements are paid straight from the bottom line. You get nothing in return.

Therefore it is invaluable to use external service providers as they are up to date with legislation and the current mood in the dispute resolutions arena.

5.    Get the benefit of solid advice and experience

Small to medium business can get the benefit for the skills and experience of the HR service provider on a level one would expect at large corporations for a fraction of the price. Up to date best practice as well as policies that are both legal and effective.  Due to their exposure to business in general they can also be a wealth of information and assistance on other aspects of your business.


Do what you do best. Run your business, be successful and make money. That way we address unemployment and make the economy grow.



One comment on “Five Reasons to Outsource Human Resources in a High Unemployment Market
  1. this is all good but even the employers don’t stick to the contract. There is a tendency in small business to expert more than what was agreed and to bend rules here and there. Most of the time the agreements are informal so that they can be easily be bend in the future. In a home office environment where most businesses operate from, it is easy to ask a worker to do something that wasn’t even in their initial agreement, i.e. can you help me sort out the garage so that we can put some of our work stuff in there. Or worse please can you please move the sprinklers to the other side of the house, yes. So employers if they want quality service, the must be able to pay for the quality and provide benefits that are favourable. Offer an employment contract that you yourself as a business understand and are willing to stick to. Provide job description and specification so that you yourself know what you want from the employee and so that the employee knows exactly what is expected of them.

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