How to Start HR Outsourcing Company in Nigeria – 7 Strategic Steps

Are you thinking of starting an HR Outsourcing Company in Nigeria but don’t really know how to get the idea to reality? If yes, then it’s the right time to stop worrying. But before we got the real ball rolling, I guessed you already known what HR Outsourcing Companies does?

If you’re conversant with job search in Nigeria, you would had probably have a better understanding of the concept Human resources, outsourcing and its management.

However, this article is meant to educate and enlighten your dark end in this concept, just in case you find this aspect of business interesting and would like to venture into it.

Outsourcing business in Nigeria is on a leading pace, and will remain a veritable source that will still create millionaires with ease, giving to the number of students graduating from the tertiary institutions yearly.

These students having graduated ultimately turn to the labour market thus creating a favourable business ground for recruitment agencies who make money by simply assembling, screening and training job applicants then hand them over to employers in need of human resources for employment.

With that out of the way now, if you’ll like to start an HR Outsourcing Company in Nigeria, kindly read each paragraph of this guide with intense concentration as if it’s a onetime life opportunity that’ll never come your way again.

What is HR Outsourcing? – Understanding the Concept HRO Companies

The abbreviation, HR stands for “Human Resources”.

An HR Outsourcing Company in Nigeria or any part of the world is responsible for finding employee, screening, recruiting and training these employee, in turn hand them over to employers who in one way or the other needed their services.

These employers could be; financial institutions like banks, corporate organizations, government establishments as the case may be. It then stands that there are no limit to category of employers who could demand the services of a human resource outsourcing company in Nigeria.

Function and Benefit of an HR Outsourcing Company

You may understand this concept better with the illustration below

Assuming a job hunter Mr. Michael Olgade approaches XYZ HR outsourcing company in Nigeria for a job opportunity, XYZ outsourcing will in turn access Mr. Michael Olgade having received his resume. If the applicant here, Mr. Michael Olgade meets the required standard, he’s then screened, got trained and will be made available to say a corporate organization RTY who depends on XYZ HR outsourcing for its employee. RTY however pays XYZ HR outsourcing either a onetime fee or monthly via possible deductions from Mr. Michael Olgade’s monthly salary.

Here is the benefit:

It then stands that the outsourcing firm will continue to make money from Mr. Michael Kennedy so long he’s still on RTY payroll.

You can now see that it’s a continuous process that will allow you to make money off an employer and his employee for as long as the contract remains valid. I’d want to believe you now understand the entire concept and how it works.

Related: Top Asset Management Companies in Nigeria

Having understand this business, I will then walk you through the processes involved in setting up not only a HR outsourcing firm in Nigeria, but a successful HR outsourcing business.

7 Steps to Launch Your HR Outsourcing Company in Nigeria

1. Business Registration

This is about the most sensitive department of your HR outsourcing company that must be given the attention it deserves. Business registration gives your firm an upper hand in so many sphere of outsourcing.

Recall, you would be dealing with corporate organizations, financial institutions and government agencies who would mostly not do business or go into contract with a non-registered business for varying reasons around legal protocols.

Aside that, getting your business registered gives it a face lift it deserves ordinarily, firms and other businesses would find it reasonable and comfortable enough to take up a deal with you.

Other benefits of getting your HR Outsourcing Company in Nigeria registered include but not limited to;

  • Having registered, your business would be issued a Certificate of Incorporation by the Corporate Affairs Commission (CAC). This certificate is usually required when you want to carry out some profile business transactions. Even corporate account opening in any Nigerian bank, it’s a legal document that certifies that the government of the day is aware of your business.
  • It serves a legal protection in case of legal battle: Your business is a different entity from yourself when registered as a limited liability company. What this stands to imply is that, should you run into trouble on the course of doing business, you cannot be sued, rather the business is being sued and served. In time like this, you can go about doing your business while your team of legal department attains to that.
  • There is a business continuity: Your business will continue to flourish even without you being present or actively involved once you have set down a systematic structure. This likewise means that the business will outlive you in person.

There are numerous advantages that goes with getting your business registered, time will not permit me to take them up one by one. But the good news is that I got a complete guide here on how to register your business or company with CAC in Nigeria

I can also help you get your business registered with the CAC within a week and you’ll collect your certificate in your state capital only. If you’re interested in this offer, click here to contact me or WhatsApp here: 080 6886 6068

2. Get a business attorney 

As a HR outsourcing company in Nigeria, you need to have a business Lawyer. If you think you can save money for not having a business Lawyer in place, you will end up losing more money than you’d ever saved.

It doesn’t cost anything to create a legal department for your business, a lawyer has the sole responsibility of advising you right.

Your legal department will take care of legal proceedings in case you run into hot waters on the course of your business. While you go ahead with the day to day activities of the company, your legal department are sorting out legal issues, this help eliminate any clog on the wheel of your success.

You may be asking that what legal issues the business could incur that I should employ the services of a lawyer?

To make it clear, outsourcing business is a very dicey one, you will find yourself in and out of contract both from the client and the employee end.

There are situations where an employee seconded to a firm or corporation commits fraud, or caused the client physical, material and financial lose, the client will quiz you legally so long it aids her to recover loses and possible damage caused her by your employee.

Let me reiterate, before you go into business with your supposed client, you ought to have signed deed of agreement and related documents that binds the both businesses together, should any party drift or fails to keep or reorganize the dictates and contents of such agreement as duly stipulated, the other party has the right to seek redress.

Your client could seek refunds on damage out of proportion as contained in your agreement, you have the right to go to court. Your employee could deliberately want a legal battle with you having committed fraud, why would they go the extent of taking a battle with you, because they may possibly have legal prowess. This is why you need to get yourself prepared.

I do not mean to scare you out of starting an HR Outsourcing Company in Nigeria with this point, but to keep you abreast on the possible eventuality that may arise en route to starting an HR outsourcing business.

3. Rent an office

Outsourcing business demands you have a physical office, it’s very necessary for your progress, this is a location where job hunters can easily visit to onboard. Your office should have a descriptive address and very conspicuous.

Additionally, this is a place where you conduct employee interview and training, it’s necessary to understand that you’ll have influx of job hunters once they get to realize you run a job outsourcing firm.

You may have to make provision for the following in your office:

  • Desks/chairs and tables smartly positioned where intending employee will have to sit for exams, while you evaluate them.
  • You may have to employ a female secretary who will deal with documentation and filing process and interfacing with job hunters in your absence.
  • You will need either a desktop computer or a laptop, where you’ll save document, files and keep other materials you will need to retrieve from time to time.
  • Make provision for alternative power supply, just in case you have crowd for interview or do some system work.
  • Upgrade to advance office as the business grows

4. Get a Company website

The power of a website cannot be underestimated, a website for HR Outsourcing Company in Nigeria aids in getting more exposure than you can ever imagine, job hunting has gone digital and you need to be seen as an authority.

Prospective clients could contact you via your company website and close a deal with you faster than you could ever imagine.

You need to be seen and heard online, that’s where the business is, job hunters can as well get to contact you via your web page, and the advantages are numerous to mention.

Your website should contain the following;

  • About page: This page should clearly tell and state the services you render, it should be aimed at convincing your clients to hook and onboard for business. Tell them how good quality employee you can make available to them, do not forget to state the milestones you’ve achieved in the industry if any.
  • Contact page: Your contact page should show clearly your office and business address, phone number and email and web address
  • You may include blog about employee, employer and business relationship, just for the tune of the business. How to make a good and productive employee etc.
  • Application page: This is a page job hunters are expected to complete online before visiting your office for documentation. You can as well collect the hard copy as the case may be.
  • Get a complementary card for your business, don’t let this embarrass you.

If in case you need someone to build, design or maintain your company website, kindly shoot me a message and I’ll be happy to get you a professional website. Contact me here or WhatsApp: 080 6886 6068

5. Outreach/Pitch Clients

It’s time to contact your potential clients who are usually employers of labour in the right sense of perception.

Employers are the currency of your business as a HR outsourcing company in Nigeria, you will need to satisfy and exceed their needs, render a quality service by shopping and recruiting employee who are passionate about their job.

I called this point outreach because it has to be a physical contact having established a kind of relationship business wise either through mail or other communication platforms.

You need to look around and start from your immediate environment, look around, how many businesses you can identify within your area, I mean corporate organizations who could be referred to as employers of labor.

There are manufacturing industries, blue chip companies, government establishments, banks etc.

Having identified them, kindly get their contacts and do a mail to the human resource department of such firms.

Itemize your services in clear terms, request to have an appointment so you can iron things out decisively and business wise.

Go around and talk to so many employers, the more the merrier, you will surely land a deal, be mindful of negotiation, do not price yourself too high and do not price too low as to question your ability to render quality service.

Shop around the industry and get a first-hand information on pricing.

Note: Pricing is subject to qualification, you are expected to pay a HND holder a bit higher than you do an OND, like-wise B.sc in principle and so on.

6. On-boarding employee

It’s time to recruit your first set of employee, wonder how to get them, you do not need to stress out about this, just print handbills and posters, paste at strategic points in town, with your web address, email address and phone number clearly written.

Do your publicity on social media platforms, tell friends and colleagues, they’ll will glad to tell applicants at no cost to you.

Just get ready to take calls and respond to emails, you’ll be surprise at the rate of turn up.

But wait, apply strict measures in your screening, pick the best out of the best for your first and second sets of clients for individual clients alike.

These are your goods, understand the need to deliver quality employee at this point, it’s not negotiable, this will open the floodgates for subsequent business going forward.

7. Employee Guarantor form

This is a form given to an applicant by the recruiting or outsourcing agent, the content of this form is high case security sensitive.

In this guarantor form, categories of people who are permitted to guarantee the applicant are enlisted, usually professionals of various ranks as deemed suitable with the company’s risk appetite. You could as well have traditional rulers as specified in the content of the form.

Now the essence of getting these guarantors to fill and sign the forms for an applicant is to stand in as Surtees, you know why? You are dealing with people from different backgrounds who could be prone to fraud and other unforeseen mishap.

If by any eventuality they abscond with the employer’s money or commit fraud related offence that resulted in loss of funds, the employer or client will reach out to you as the HR outsourcing, you then reach out to guarantors of the employee to indemnify the client duly.

Putting the client/employer into any form of financial or material loss in a fraudulent means is tantamount to endangering the guarantors who repose high degree of confidence and trust in the employee.

For the record, the content of a guarantor’s form is very scary that it takes people with extraordinary confidence in you to endorse.

Why am I saying this, we’ve had cases where family members refused to sign or endorse for relatives, giving that there are series of warnings contained in the form which is aimed at enlightening the guarantor to understand the contract he/she is undertaking.

The position of the law as contained therein is to indemnify the employer to the last kobo in event of fraud or loss of funds.

If by any chance people turn down your request for guarantor, kindly understand and move ahead, do not make a meal out of it, you might probably do same if you were in their shoes. Intensify your search and you’ll get someone who will trust you enough to stand by you if you’re the applicant.

Advice to applicants: Please be honest with these guarantors forms, do not fake them, the outsourcing agents have field agents who travel far and wide, length and breadth of this country to confirm the authenticity of your guarantors.

They will visit your supposed guarantors as provided and confirm their identity, if you fell short in this area, your employment will be terminated, then get you arrested to pay every damn loss they incurred on you as perceived.

Rounding off – Starting an HR Outsourcing Company in Nigeria

It doesn’t cause a thing to start a HR outsourcing company in Nigeria, follow the guidelines as stated and you’ll be on your to setting up a business you will live to enjoy without stress. If this guide worth your time, do show some love by sharing it.

GUEST AUTHOR

Raphael Orji is a freelance writer with core interest in banking, entrepreneurial and business development, professional blogger and a content marketing consultant, check out his blog at https://www.financengr.com

5 Comments

  1. Avatar Comfort Uwakhonye
    March 6, 2020
  2. Avatar Ben
    December 25, 2020
  3. Avatar Solomon
    January 15, 2021

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