HR Outsourcing in Indonesia: The Benefits & Challenges

HR outsourcing in Indonesia can be as specific or as broad a service - the key is customizing to the needs of an organization's HR functions

Hiring an incompetent employee is a liability. According to a survey, a bad hire can cost a business $50,000 or more. While it actually differs depending on the industry or the country, one thing is clear: it loses you money.

A poorly chosen employee can result in a fast turnover rate, low productivity, and decreased morale among the team members. It’s not unusual for the best people to leave if companies continue to pick the wrong individuals to join a team. This person can also potentially affect your brand and your customer relationship.

For all these reasons, it is not enough that a business has a human resource department. More than anything, it needs to be effective.

Foreigners who are trying to open companies in another country such as Indonesia may find setting up an HR more challenging. That’s why Cekindo is here to help.

The Benefits of HR Outsourcing in Indonesia

One of the trusted market-entry partners in Indonesia, Cekindo as an Employer of Record has designed useful HR outsourcing Indonesia programs for a variety of foreign clients.

Our company has a presence in some of the major cities in the country, and these include Semarang. A well-known port-city, the metro is home to almost 2 million people and around 10 universities, which makes it not only accessible but also a hotspot for new talent. However, this is also a reason why selection of a right candidate can take weeks.

In Cekindo, we know that time is money. Our Semarang team will advise you on quality HR outsourcing among others so you can truly focus on your core activities.

Outsourcing the recruitment process will bring you these benefits:

1. Legal Support and Guidance

HR and national or local laws always go hand in hand, and many of your company’s guidelines or policies such as wages have to refer to these regulations. Navigating through these laws, though, can be difficult for a new foreign investor for many reasons. One of these is they can change more often than one thinks. Moreover, with so many cities and provinces in the country, it is hard to keep up with the differences in regulations.

Indonesia HR outsourcing reduces the time you need to understand these laws as you will receive both legal support and guidance every step of the way.

Read also Semarang: The Gateway to Central Java and International Markets

2. Recruitment

Recruitment is a time-consuming, laborious process, which many foreigners may not have. It may require you multiple trips to the country, which is costly.

Working with Cekindo, you can save more money without compromising the quality of your hires. We can outsource your entire recruitment phase to us, and we’ll take care of it from start to finish. We handle the advertising and the screening of the applicants. Our company has a reliable and extensive background check service, which we can complete within 7 days.

We also have an in-depth knowledge of the workforce profile and possess a database of contacts and affiliations, which can help us find good candidates in a short amount of time.

Should you wish to hire expatriates, Cekindo can assist you in processing work permits and business visas.

3. HR Establishment

HR is also one of the most complex departments in any business, but we can help simplify it for you. Besides HR outsourcing, Cekindo also specializes in payroll processing, tax reporting, accounting, and auditing. We’re here to make it more convenient for you to draft strategic, value-oriented, legal policies.

We will also help you in developing your compensation and benefits program.

Outsourcing HR in Semarang will help you to avoid working with the bad apples. Be sure your business is surrounded by qualified and competent individuals who will cement your presence in the country and build your brand from the ground up with the support it requires.

For more information, contact us today.

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Engkin Nursita

Engkin is Cekindo's Human Resources Manager, dedicated to building a dedicated internal human resources team. He is also responsible for delivering HR outsourcing services in Indonesia due to his expertise in cost efficiency, process improvement, and company policy formulation. Before Cekindo, he was an HR Business Partner at a global MNC logistics company in Indonesia where he supported the HR integration of two leading entities after acquisition.