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Why you should outsource your company’s manpower?

Nowadays, many entrepreneurs have become accustomed to making tough decisions on a daily basis, ranging from sales and marketing to recruiting new staff. However, one key question is, should you deal with all functions of human resources internally or consider outsourcing it to another company?

Why you should outsource your company’s manpower? - xetron solutions - manpower outsourcing company

As the demand for human resources is increasing day by day, efficient manpower is the key to success for every organization. Human resource outsourcing, also known as manpower outsourcing, is the act of contracting with a third party to perform services on behalf of the company (in the case of human resources). Lack of time, internal resource shortages, knowledge deficits and other factors contribute to the practise of outsourcing manpower. Outsourcing human resource management is highly beneficial for small businesses, in particular, because it ensures that all aspects of human resources are handled properly.

To the mutual advantage of both parties, employers can use manpower outsourcing agencies to relocate the employment of potential or current workforce under an agreement signed for a specified length of time. Some services include discussing terms of employment, preparing all necessary employment contracts directly with contract staff handling all pension fund enrollments, administering employees annual, sick and unpaid leave and providing workers compensation insurance.

Thanks to the ever-growing database of applicants and clients, as well as the extensive industry expertise, manpower outsourcing agencies’ recruiting teams can carry out head hunting the right person to the appropriate opportunity. The recruiting teams exclusively work in particular countries and are specialised in talent sourcing just the best applicants for positions in the following industries, such as Information Technology, Banking & Financial Services, Finance & Accountancy, Sales & Marketing, Retail & FMCG, HR & Administration, Temporary & Contract.

Numerous factors go into payroll administration, such as being informed of legal changes, maintaining appropriate contingency plans, and managing time constraints in an ever-changing environment. In order to eliminate disruptions and ensure uniformity and precision in the payroll process, manpower agencies simplify their customers' payroll processing tasks. In order to best satisfy their customers, consulting teams are always reviewing and improving their procedures.

In addition to computer systems and network infrastructure, manpower outsourcing agencies offer internet access and data transmission goods and solutions for SMEs (Small and Medium Enterprises), MNCs, as well as enterprise-wide businesses with complex networking needs. Following is a list of the common services provided - providing assistance with technical issues and providing maintenance services, solves problems related to security, management of data & storage, services for project management and consulting, integration of the various system components, solution for disaster recovery, management of infrastructure


Save cost:

Manpower outsourcing can result in substantial cost savings when compared to hiring a full-time trained HR expert, which can cost between RM70,000 and RM120,000 per year – excluding bonuses, taxes, working space, HR resources, and training. These savings could make a company stay competitive and profitable, which will increase productivity.

Work with an experienced team: As a result of manpower outsourcing, companies may access skilled consultants who have first-hand expertise providing HR services in a range of sectors. When it comes to policy and legislation changes that might influence your workplace, our HR specialists aim to be the first to know about them.

Receive consistent level of service:

By outsourcing manpower, we are able to offer comprehensive documentation of all HR procedures, allowing other team members to step in and provide help when needed. It is no longer necessary for companies to be concerned about a single individual having the keys to their unique responsibilities and tasks.

Get flexibility and full customization:

Through manpower outsourcing, support services and onsite schedules are customised to meet the needs of each company. HR outsourcing offers extra freedom, whether it's handling perks, employee engagement, training and counselling, or interviewing people (candidate sourcing services).

Manage risk:

Businesses must comply with a plethora of state and national requirements. Keeping up with these requirements to stay compliant can be difficult for smaller businesses, especially when existing standards are constantly evolving and new regulations are being imposed on a regular basis. Non-compliance due to lack of ability to keep up can have serious financial consequences. By conducting regular audits, a manpower outsourcing agency can help your organization stay on top of all applicable regulations. Your employees are also protected when you comply with regulatory standards. Many regulations govern recruiting, health coverage, and incentives. Manpower outsourcing agencies can help you ensure adherence and protect your employees.

What should you know about outsourcing in human resource management?

Make sure to detail the functions to be performed and desired performance level, as well as monitoring procedures, period of agreement, and how to get out if things don't go according to plan. In the end, businesses should choose a manpower outsourcing company based on their solid track record, technical expertise, relevant skills, compatibility, and most importantly, price. Following the completion of the selection process, businesses should promote feedback channels with the selected manpower outsourcing company in order to identify potential challenges that may occur in the near future.



Your company's success is directly tied to the accomplishment of your human resources department. Don't skimp on manpower outsourcing when you consider all of the functions that human resource is responsible for. Setting up a human resource department and scaling it up as the business grows, on the other hand, can put a huge strain on your resources. Most businesses will eventually begin to outsource some, if not all, of their manpower functions as they grow. Human resource management will be more efficient as a result. It is possible to devote more money and effort to topics that directly affect the success of your business by manpower outsourcing.

What you need to do right now 👇🏻

In today's world, entrepreneurs have a lot to worry about. You can strengthen your business and save money by collaborating with an outsourcing recruitment agency. Visit our website to speak with a professional and to receive a quote. 👇🏻


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