What is outsourced Human Resources (HR) and why did I start my own outsourced HR firm? Well it’s simple: I wanted to ensure that small and medium enterprise (SME) owners had bespoke, affordable solutions to their HR requirements. That’s why I started ADDA; to bring high-level HR expertise to SMEs without the need to hire in-house.
We’ve moved to a much more outsourced economy in recent years. In fact the worldwide business process outsourcing market was estimated at $245.9 billion in 2021 and is predicted to increase at a 9.1% compound annual growth rate (CAGR) from 2022 to 2030.
Why should your HR be any different?
When I used to work for large companies as HR director, I would see what we charged clients for our services. Sometimes the figures were eye-watering! I’m not saying that they weren’t worth it. However, I knew that there was a huge market out there of SME owners, who were simply priced out of the market.
Their needs were no less significant however. In fact; their inability to grow was probably directly connected to their lack of budget for hiring and retention.
So my partners and I saw a gap in the market. Not only to provide affordable HR services to SMEs, but to really partner with other business owners to drive growth. This has helped us grow by word of mouth, to the point that we now have a huge network of clients.
What are the advantages of working with an outsourced HR firm over hiring in-house?
Something that we found very quickly is that, because we deal with all sectors, we have built a very detailed, broad knowledge base. We’ve had such a variety of different clients. We can now, therefore, offer a much greater range of solutions. Often times these might be cross-sector and not something that would traditionally be considered.
Of course a big advantage of working with an outsourced HR firm, such as ADDA; is cost efficiency.
It’s probably obvious, but it bears repeating. Hiring in-house departments comes with the cost of staffing, benefits, holiday, sickness etc…
By outsourcing your HR, you are only hiring the services that you need, when you need them. This, of course, has massive cost-saving implications. It will also have the compounding effect of enabling you to bring HR services into your organization, much earlier than you would otherwise.
This will turbo-charge your growth because you will be able to attract and retain the best talent, from a much earlier stage of your development. Putting you ahead of the competition by a big margin.
That’s what I’ve been surprised by, since starting my own outsourced HR firm. I love the we get to partner with our clients and be part of their growth strategy. It’s been one of the most rewarding parts of our journey, to really become a strategic partner for our clients. To grow a network, see everybody thrive together and know that we had a hand in that.
We offered outsourced HR in Colorado, Chicago and South California initially, but this quickly grew. Now working across all 50 states and internationally, we’ve certainly seen our share of different regulations. We’ve also seen how quickly these can change, and how easy it is to be caught out.
It is my sincere belief that HR should be available to all businesses at the earliest possible stage. Not to be a compliance ‘tick box’ or a drag on resources, but to be part of your engine for growth!
The importance of SMEs can not be understated.
They account for 60-70 percent of jobs in most OECD countries, but less than half survive their first five years. By ensuring that you have the right team and the best practices in place to retain them; you will stand the best possible chance of beating those odds.
We’re always here to support you. So please reach out to us today.
Thank you.
Adam Daines CEO of ADDA LLC
