Hakuhana provides business, employer, and employee services for local and international businesses, with a large subset range of services to help your business grow sustainably and ethically.
There can be no doubt that the face of the business world is changing rapidly. The world is becoming smaller as technology breaks down global barriers. Latest (2022) statistics show that LinkedIn, the business world’s primary social media platform has over 830 million users in over 200 countries.
More and more, small and medium-sized companies are doing business overseas and entrepreneurship is on the rise and in addition, established companies are experiencing a boom in growth.
In brief, business is becoming increasingly competitive; innovation and the capacity to adapt to change are key factors to long term sustainability in all businesses today—from small and medium-sized businesses to multi-national corporations.
In addition, the changing and increasingly complex regulatory environment is also a challenge for both small and large businesses alike. While large corporations can afford to employ entire departments to ensure regulatory compliance, smaller businesses often need to turn to external consultants and advisors to ensure that they remain in compliance.
With all of this comes a new role for Human Resources and a whole new set of challenges. Finding, hiring and keeping the right staff, especially during seasonal peaks has always been a time-consuming and costly yet necessary function of the HR Department. However, in today’s competitive environment, many such traditional administrative functions prevent HR staff from performing other value adding activities that provide greater ROI for the business itself, such as recommending ways to use human capital to create value.
In order to allow HR staff to perform this more critical role, the transactional and administrative work of HR (including managing benefits) could and should be cordoned off and reassigned, and some companies have already begun to do so.
Netflix, for example, has transferred traditional HR processes and routines to the finance function, while many other routine functions , such as payroll are outsourced to a third party. Any third party that is particularly skilled in performing these routine yet necessary functions, and is especially knowledgeable in the constantly evolving world of regulatory compliance provides tremendous value in allowing a business to focus on what creates the most value for the business itself.
From an employee/benefits perspective, the increasing costs of healthcare, benefits and skills training means businesses particularly small and medium-sized businesses are often constrained in terms of their ability to offer maximum benefits and flexibility to their employees.
For entrepreneurs and small-businesses in particular those that do not enjoy the benefits of economy of scale, the cost of HR benefits and administration can be prohibitive.
For these companies in particular, finding the right outsourcing partner is critical: one that will allow them to offer maximum benefits and flexibility to their employees but will also allow them to do so at a reduced cost.
As the world of business evolves, companies and HR managers alike could and should reconsider the role of the HR function to address these new challenges and create greater value for the organisation.