Imagine you’re managing one of the largest fast-food chains in the world, like McDonald’s. With thousands of restaurants globally, ensuring that every employee is in the right role, paid correctly, and motivated to provide excellent service is a monumental task. Handling all these responsibilities is what Human Resources, or HR, is all about. But even a powerhouse like McDonald’s doesn’t manage all these HR tasks alone. They often turn to experts outside the company; this is known as HR outsourcing.

But why would a giant like McDonald’s need to outsource HR? What’s in it for them? Let’s explore 10 reasons why outsourcing HR is a smart strategy?

1. Finding and Keeping Great Employees

Hiring the right people and making sure they stay with your company is crucial, especially when you’re running as many outlets as McDonald’s. But how does McDonald’s find the best employees, and more importantly, how do they keep them?

By outsourcing HR, McDonald’s partners with specialists who are experts at recruiting and retaining talent. These HR firms use their deep knowledge and resources to identify the best candidates and create engaging onboarding processes that make new employees feel valued and excited to stay. This way, McDonald’s ensures that every restaurant is staffed with motivated, skilled workers who contribute to the company’s success.

2. Making Employees Happier

Happy employees are like the secret sauce of a successful business; they’re essential for creating a great customer experience. But keeping a global workforce happy is no easy feat.

HR outsourcing firms help McDonald’s by designing benefits programs that make employees feel appreciated. This might include health insurance, paid time off, or special incentives for top performers. When employees feel taken care of, they’re more likely to go the extra mile, whether it’s greeting a customer with a smile or ensuring your Big Mac is just right. Staying updated with the latest HR trends helps companies keep employees engaged and productive.

3. Flexibility in Business

McDonald’s operates in a dynamic environment, where demand can change rapidly. Sometimes they need more staff, like during the holiday season, and other times, they might need fewer workers.

Outsourcing HR gives McDonald’s the flexibility to scale their workforce up or down quickly. The HR firm can handle temporary hiring and contract management, allowing McDonald’s to adapt without the headaches of managing these changes in-house.  It’s like having a dial that McDonald’s can turn up or down depending on their staffing needs, which is crucial for navigating global HR challenges in different markets.

4. Saving Money

Running an HR department is costly. You need software, staff, and constant training. But what if there was a way to cut these costs while still getting all the HR support you need?

By outsourcing HR, McDonald’s saves money by not having to manage everything internally. For instance, instead of handling payroll themselves, they outsource it to a firm that specializes in it, reducing errors and ensuring timely payments. The money saved can then be reinvested in other areas, like improving restaurant facilities or enhancing customer experience.

5. Managing Remote Workers

McDonald’s isn’t just about the people you see in the restaurants. They also have employees working behind the scenes, some of whom might be working remotely from different parts of the world. Managing these remote workers requires careful coordination.

By outsourcing HR, McDonald’s ensures that remote employees are managed just as effectively as those in the restaurant. The HR firm handles everything from time zone differences to payroll, making sure everyone is on the same page, no matter where they’re working from.

6. Getting Work Done Faster

With thousands of employees globally, McDonald’s has a lot of HR-related work, like processing payrolls and managing benefits. These tasks can be time-consuming.

HR outsourcing firms use advanced tools to speed up these processes, allowing McDonald’s to focus on serving customers rather than getting bogged down in paperwork. It’s like upgrading from a slow conveyor belt to a high-speed one; everything moves more efficiently, and customers get their meals faster.

7. Expanding to New Locations

When McDonald’s opens a new restaurant, especially in a new country, they need to know the local rules and regulations about hiring and managing staff. Keeping track of all these laws can be overwhelming.

Outsourced HR firms are experts in global HR compliance.  They help McDonald’s navigate these complexities, ensuring that every new location complies with all local regulations. This means McDonald’s can expand smoothly, focusing on what they do best; serving food; without getting tangled up in legal red tape.

8. Using the Best Technology

Staying ahead in business often means using the latest technology, but constantly upgrading systems can be expensive and time-consuming.

HR outsourcing firms usually have access to the latest HR technology, which McDonald’s can use without having to buy it themselves. This technology helps manage everything from employee records to benefits, making the company’s operations more efficient and less prone to errors.

9. Following the Law

There are strict laws about how employees should be treated, from their pay to the protection of their personal information. If McDonald’s doesn’t follow these laws, they could face serious penalties.

By outsourcing HR, McDonald’s ensures they are always compliant with the latest legal requirements. The HR firm stays on top of any changes in the law and makes sure McDonald’s is always in line, protecting the company from legal issues.

10. Keeping Information Safe

With so many employees, McDonald’s has a huge amount of sensitive information to protect, like employee addresses and bank details. Keeping this data safe is crucial.

HR outsourcing firms use advanced security measures to protect this information from threats like hackers. By outsourcing, McDonald’s ensures that their employees’ data is secure, which builds trust and keeps the company’s reputation intact.

Manage Your Global Team with Gloroots

Managing a team spread across multiple countries isn’t just about hiring people online. It’s about ensuring that every team member collaborates effectively, selecting the right candidates for each role, and monitoring their performance; all while adhering to the regulations of each country.

This is where Gloroots comes in. Their platform simplifies the process of hiring, onboarding, and paying employees in over 160 countries, all without the usual headaches. Gloroots also ensures you stay compliant with local laws, so you can focus on growing your business rather than worrying about legal complexities. Want to see how Gloroots can help you build and manage your global team effortlessly? Book a demo today and take the first step toward smoother, more efficient global team management!

Conclusion 

Outsourcing HR isn’t just about saving money; it’s a smart choice that can help your business run better. By letting HR experts handle tasks like hiring, payroll, and keeping up with laws, companies like McDonald’s can focus on what they do best: growing and serving their customers.

If you’re managing a global team, tools like Gloroots can make it easy to hire, pay, and manage employees from all over the world. With the right help, managing your team doesn’t have to be hard; it can be smooth and simple.

Thinking about how HR outsourcing could help your business? It might be just what you need to reach your goals and make managing your team easier.