HR outsourcing in Vietnam isn’t exactly a new idea in Vietnam’s dynamic business environment. HR outsourcing means having an external, third-party vendor to provide company HR services that usually perform internally in the company.
For many years, companies in Vietnam have contracted with HR outsourcing suppliers to perform a myriad of HR functions.
As companies in Vietnam, especially foreign companies, demand a highly streamlined management process to boost business operational efficiency, they start to take a closer look at how HR outsourcing can help contribute to the business’ bottom line.
Many HR professionals find that with the right outsourcing solutions and providers, companies can save money, decrease employer turnover rate, help focus resources and energy, and improve the operational and business performance.
HR Outsourcing in Vietnam Reduces Employee Turnover Rate
On average, employee turnover costs businesses thousands and thousands of US dollars per person. The costs include time and money investments in employee training, recruitment, and lost productivity. Of course, a business can always hire a new employee, but a new hire and additional training cost money too.
A successful business takes employee retention seriously and tries to reduce their employee turnover rate to the minimum – because they know the tremendous benefit a talented employee and great teamwork could bring to their business in the long run.
Therefore, the management of HR functions plays an extremely significant factor in hiring the right employee in the very beginning and maintaining the employee’s satisfaction and loyalty to the company during their employment.
This is when HR outsourcing becomes hugely important for your business to prevent the long-term implications of employee turnover: reduced bottom line and productivity, decreased level of employee experience and quality, and ultimately discounted the company’s reputation.
Other Benefits of HR Outsourcing in Vietnam
1. Expert and Global Insights
HR outsourcing is not only helpful for employee turnover reduction but also advantageous for businesses expanding into international markets.
Reputable HR outsourcing experts can help you retain employees in other countries including Vietnam. This is because they understand the employment law and health insurance legislation in the country you plan to expand your business in.
With that, this professional team can design policies and benefits that will make your employees happy and satisfied.
2. Cost Saving
Partnering with an HR function provider is not only cost-effective for the short term, but also a long-term cost-saving solution for enterprises in Vietnam.
HR functions are not just about printing payroll slips and conducting interviews, they involve many other activities such as background checks, employee training, the technology that will take a big chunk of your time and money.
Furthermore, these activities require substantial skills and expertise which you may not have.
3. Efficient Response to Employees
HR outsourcing allows your employer to become more responsive to the staff’s needs.
Without having to spend time on payroll and other mundane HR functions in-house, employers now have more time to focus on employee’s professional requirements and address their issues more efficiently.
4. Compliance with Legislation
It’s not unusual that Vietnam’s regulations on taxation and accounting, payroll, and labor change constantly since the country is now on its way to a positive economic transformation.
Foreign employers may not always be up-to-date with these changing laws and thus risking legal violations. Through HR outsourcing in Vietnam, you don’t have to worry about non-compliance anymore.
Read this blog to find even more benefits of HR outsourcing.
Outsource HR Services to Cekindo
Since its inception, Cekindo has been one of the prominent players in HR outsourcing in Vietnam.
Our team professional consultants provide you with HR services for different types of business entities at a global level.
With immense experience in HR functions, we can take care of payroll, accounting, recruitment, visa application, and other HR tasks.
Let Cekindo, the most reputed provider of HR outsourcing in Vietnam, to help you grow your business.
Contact us now and we would be happy to assist you and sort your queries. Fill in the form below.