Outsource Your Business Functions and Enjoy These 6 Benefits

When it comes to running a business, there are certain tasks that must be completed in order for the company to operate. These tasks can include bookkeeping, customer service, marketing, and more. However, not every business owner has the time or resources to complete all of these tasks on their own. That’s where outsourcing comes in.

Outsourcing is the process of hiring a third-party company to complete specific business functions for you. By doing so, you can focus on your core tasks and lower your costs. In this blog post, we will discuss six benefits of outsourcing your business functions!

There are many types of business functions that can be outsourced, but the most popular ones are bookkeeping, cloud computing services, customer service, and marketing. Bookkeeping is the process of keeping financial records, such as invoices and receipts. Cloud computing services allow businesses to store data and applications remotely, which frees up space on their own computers. Many companies use cloud computing services to store data and applications off-site.

This can promote growth for your company as you will have more time to focus on other tasks. In addition, by using a third-party provider for cloud computing services, you can maintain operational control while still benefiting from their expertise. Customer service involves interacting with customers to provide them with information about your products or services.

Marketing involves creating and distributing marketing materials, such as flyers and brochures. All of these functions are important, but they can be time-consuming.

By outsourcing these functions, you can enjoy a number of benefits.

Save Money

Perhaps the most significant benefit is that it can help you save money. When you outsource a task, you are only responsible for paying for the service itself and you are able to take advantage of economies of scale. You don’t have to worry about hiring and training new employees, which can be quite costly. In addition, outsourcing companies often have economies of scale that allow them to provide their services at a lower cost than if you were to complete the task on your own.

Promote Company’s Growth

One benefit of outsourcing your business functions is that it can help promote growth. When you outsource certain tasks, it frees up your time to focus on other areas of the business. This can help you expand into new markets or product lines and grow your company at a faster pace. For example, if you outsource your customer service, you will have more time to focus on developing new services.

Maintain Operational Control

Another benefit of outsourcing is that it allows you to maintain operational control. When you outsource a task, you are still in charge of overseeing the project and ensuring that it is completed according to your specifications. This ensures that your company’s standards are always met and that you have complete control over the final product. This is great as you can be sure that the task is being completed correctly and efficiently.

Offer Staffing Flexibility

Outsourcing can also offer staffing flexibility. When you outsource a task, you can hire as many or as few employees as you need to complete the project. This allows you to adjust your staffing levels according to your company’s needs and budget. This can be beneficial as you can avoid the cost of hiring and training new employees when your company is experiencing a slow period.

Provide Continuity and Risk Management

Outsourcing can also provide continuity and risk management. When you outsource a task, you are entrusting the completion of the project to a third-party company. This means that if something happens to your company, the outsourcing company will still be able to complete the project. This can help minimise disruptions in your business and protect your company from potential risks.

Focus on Core Tasks

As a business owner, it’s important to focus on your company’s core tasks. By outsourcing non-core tasks, you can free up your time to focus on the areas of the business that you’re passionate about. This allows you to create a more efficient and effective company overall. Also, when you outsource non-core tasks, you can be sure that they’re being handled by experts, who can save you time and money in the long run.

Outsourcing is a great way to improve efficiency and effectiveness in any company. It allows business owners to focus on their company’s core tasks while delegating non-core tasks to third-party providers. By outsourcing, businesses can enjoy the above mentioned benefits and many others. So if you’re looking to improve your company’s efficiency, consider outsourcing some of your business functions.

Top Reasons Why HRs Are Crucial to Any Company

Human resources is the set of people who make up the workforce. Many business owners get their companies off to a great start, but as they grow, they run into problems with personnel management. Managing employees takes time and demands a certain set of abilities.

HR is a skill set that many entrepreneurs require. An HR’s worth in a company isn’t often immediately evident, regardless of capabilities. When it comes to the people they hire and manage, company executives feel as if they have figured everything out with just a few workers. However, when a company expands, executives frequently discover that they don’t have enough time to deal with daily people management and recruitment, and the focus on people can quickly slip away. This is an expensive error that may have a negative impact on employee happiness, culture, and long-term success.

Historically, HR was concerned with recruiting, firing, and the yearly salary review. However, HR has lately been reframed in a positive light, and it now has a far broader scope—it also plays a key role in fostering a healthy corporate culture and increasing employee productivity and performance. Every business needs an HR department, whether it be Amazon, Sysco, Cookie Casino, or even Starbucks.

1. Recruitment

HR recruiters oversee the entire hiring process, from resume screening to arranging interviews to onboarding new workers. Generally, they examine which methods are best suited for the organisation’s goals, as well as the most successful ways for recruiting applications. It might be challenging to find the ideal people to work in your company; it could even take months to complete a recruitment process, and doing it wrong can be pricey.

One of the most critical components of HR is finding a good match. Your business will suffer if you hire too many workers, too few, or the wrong applicant. Onboarding is likely the most underappreciated aspect of the hiring process. This refers to the entire process of hiring, greeting, orienting, and engaging a new hire, as well as assisting them in adapting to your company’s culture.

2. Examining Benefits

Benefits experts can help a company cut expenses related to turnover, attrition, and replacing employees. They are vital to the company because they have the skills and ability to strike a deal for group benefits packages for employees that are both within the company’s budget and in line with current economic realities. These HR employees are also aware of the types of employee perks that are most successful in retaining employees. This can help the organisation save money on turnover, attrition, and recruiting replacement employees.

3. Risk Management

Employers have a responsibility to create safe working conditions for their employees. The compliance with occupational safety and health administration laws is managed by HR workplace safety and risk management professionals. These employees keep correct work logs and records and devise programs to limit the incidence of workplace injuries and deaths. HR workplace safety and risk management experts are also involved in increasing knowledge and proper management of dangerous machinery and toxic materials, thanks to workplace safety professionals.

4. Employee Satisfaction

The HR department is in charge of evaluating if employees are content with their supervisors, as well as the job and its responsibilities. As satisfaction is difficult to quantify and at best ambiguous, HR professionals must carefully construct employee surveys, supervise focus groups, and conduct an exit interview plan to identify how the firm may improve in connection to its workers.

Employee relations experts in HR seek to improve the employer-employee connection and assist the company to achieve high levels of performance, morale, and happiness throughout the workforce. They conduct employee opinion surveys, focus groups, and seek employee feedback on job happiness and strategies for the company to maintain positive working relationships. In conclusion, HR identifies the causes and/or reasons for current or former employee unhappiness and handles those issues in the most effective way possible to increase morale and motivation within the organisation.

2020 Global Sustainability Report

A comprehensive global report on sustainability and the implications on the insurance industry has been published today. The report looks at sustainability-related initiatives and frameworks around the world and analyses the current status in 19 countries.

With its global reach and coverage the report is the first of its kind setting out the legal basis for sustainable insurance.

The insurance industry is affected by environmental, social and governmental risks in its entirety. From asset prices and investment choice to business transition risk; the ESG risk to insurers’ own operations including property, personnel supply chains and claims – the insurance industry will need to deal with many issues.

However, it is also uniquely placed to play a fundamental role in as part of the solution. Insurance engages with almost every industry and sector; it owns a large amount of the world’s assets and it has a global reach and a finely detailed knowledge of risk transfer and solutions.

The report was launched at an online event attended by industry members from a variety of functions at insurance companies, brokers and consultancy firms with speakers from UNEP FI, AIG, Insurance Council of New Zealand and FTI Consulting.

During the session a survey was conducted which found that in spite of the COVID-19 pandemic 69% of attendees had experienced an increase of the importance of ESG issues due to public attention and policymaker statements.

This has been reinforced by increasing focus on ESG topics from employees and customers and 38% of attendees noticed a marked increase in their competitors’ activities in this area.

Within insurance companies the areas most affected by ESG issues were Investment and Risk Management departments.

Acceleration Claims in Kuwait

Acceleration claims on a construction project defines the situation when work is performed at a faster pace than initially planned. In most cases, acceleration is needed to counteract accumulated delays and to meet the agreed completion date.

Acceleration can also occur when the contractor has a direct interest in seeing a project completed ahead of schedule – either by receiving a performance bonus or by relocating resources to another project. The contractor can accelerate work on a project by requesting its workers to perform overtime, by adding a new shift, hiring additional labour, subcontracting, or changing the sequence of activities.

Whatever method is chosen, it comes with extra costs that can or cannot be later recovered. Accelerating the project schedule is never free. In addition, when the acceleration is sudden, labour productivity decreases substantially because of fatigue or unfamiliarity to the project.

There are three types of acceleration that are different based on their causes: Voluntary Acceleration, Directed Acceleration, and Constructive Acceleration.

Voluntary Acceleration describes the situation when the contractor unilaterally takes the initiative of speeding up work on-site, without being previously asked by the owner to do so. This can result in costs that go beyond the original bid and which won’t be recovered unless the client is notified and agrees with the acceleration.

Reasons for a client to accept a voluntary acceleration mostly relate to the ability to generate revenue faster by selling, letting, or starting production, which can counterweight the increase in construction costs.

Directed Acceleration is the simplest and most straightforward case of speeding up the construction schedule. The client requests the contractor to accelerate work and pays for the acceleration costs. Such a situation won’t lead to disputes if parties agree on the magnitude of additional costs.

Constructive Acceleration is a situation that is not explicitly voluntary nor directed. Constructive Accelerations typically occur when the contractor is able to invoke an excusable delay such as design changes, added scope, extreme weather, site conditions that differ from bidding specifications, or force majeure events.

Owner-caused delays also qualify to justify a constructive acceleration, as well as any other factors beyond the contractor’s control that couldn’t be initially assessed as risks.

Each type of acceleration can lead to an acceleration claim. Voluntary Acceleration claims don’t entitle to extra payment unless agreed with the client. Directed Acceleration claims usually have a predictable outcome, as extra payment is granted to the contractor once an agreement is reached. Constructive Acceleration claims are the ones more prone to create a dispute.

The client might argue the contractor wasn’t entitled to accelerate, and the contractor might argue that accelerating the project was the only choice. Acceleration claims must meet a set of preconditions to constitute a reasonable dispute and grant compensation to the contractor. First, the excusable delay must be clearly identified.

Delays qualify as excusable only if they impact the critical path of the schedule. Second, the contractor must have made the request for time extension according to contract obligations and in a timely manner to accommodate a response. If the owner denied the request, thus implicitly requiring for project completion according to the initial schedule, it forces the contractor towards a constructive acceleration.

The final condition states the contractor must attempt an acceleration to counteract the delays caused by the excusable event and prove such action incurred extra costs.

As always, solving acceleration claims in a mutually advantageous way requires for communication between parties to be prompt and explicit. The difficulty of proving delays and associated acceleration orders highlights once more the importance of proper document management.

To give an example, the contractor is mistaken if they speculate a time extension won’t be granted by the client and act according to that presumption. What might have constituted a valid constructive acceleration becomes a voluntary acceleration in the absence of written client consent.

Another common issue regarding acceleration claims is when the granted time extension is insufficient. In that case, a contractor has to prove that the anticipated work requires additional time or additional cost compensation.

Lastly, acceleration is a topic that has to be addressed as early as possible in a complex project. It is always simpler and less disruptive to smoothly speed up works as they encounter the first signs of delays, instead of waiting for them to accumulate.