Advantages of human resources outsourcing
• Focus on your strengths: Outsourcing human resources will allow you to spend more time on the business activities you do best. Small business owners often wear many hats; outsourcing will allow you to remove a few.
• Increase efficiency: Although you and other members of your staff may be able to fill the human resources gaps, outsourcing to a professional will increase efficiency because they have the necessary industry expertise.
• Lower overhead: Growing your business does not necessarily mean you need to increase your office space and employee expenses. Human resources outsourcing helps keep these costs low while still allowing you to expand.
• Flexibility: If you are doing a big hiring push, human resources outsourcing allows you to temporarily beef up your staff without hiring new HR employees. The same is true during other peak times such as year-end tax preparation.
Potential disadvantages of human resources outsourcing
• Management quality: Outsourcing a few human resources functions does not mean that managers no longer have responsibility for their staff. It is important for small business owners to understand that they still hold all of the responsibility for managing people and ensuring that HR processes are appropriately handled.
• Alignment of values: If fostering a company culture is important to you, make sure your outsourcing provider has consistent goals and values.
• Loss of knowledge: Outsourcing providers should not work in a vacuum. Make sure key members of your staff regularly interact with the provider to maintain knowledge within the company.
22nd February 2012 From Vietnam , Hai Phong
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3rd March 2014 From India, Delhi
The role of HR in the new business environment is to support the Business Transformation and enable companies to compete with the new market realities.
The HR function is probably the toughest job, juggling diverse responsibilities of hiring, managing, engaging, and retaining talent. From being a total cost center, the Human Resources function has evolved into the single largest contributor to the well-being of an organization.
I think a right partner can free up your work tension form transactional activities. The major functions where an organization can leave up to outsource are:
• Workforce Administration
• Time & Attendance
• Benefits Administration
• HR Helpdesk
• Talent Management - Recruitment, Performance Management & Training and Development
A growing number of businesses are now adopting ERP (enterprise resource planning) systems in order to give their department’s accurate and accessible shared data. HR isn't being left out of the loop. In fact, most major ERP vendors now offer their customers HR modules that help automate an array of tasks while generating crucial data for enterprise planning and optimization.
Look at this site to know people’s view in different angle on debate in the topic, Does HR outsourcing really works or not?
Does HR Outsourcing Really Work?
17th October 2014 From India, Chennai
HR is a big vertical in itself. Based on the type of business you are into. You can outsource the following activities:
1. Recruitment: Outsourcing recruitment to experts saves a lot of time and money for any start-up/SME. Plus recruitment consultants can bring talented candidates in lesser time.
2. HR Policy making: This includes areas like - offer letter, onboarding formalities, Leave Policies, Setting Appraisal goals and criteria and even the exit interview. Other policies related employees while their stay in the company
3. Employee training & engagement: Experts for Soft skill training, technical skills, business skills are readily available to take sessions for your employees. Experts can also make Employee engagement and benefits policies.
4. Payroll & Accounting: Written it at the last, as HR vertical is only partially responsible for this activity. However, in your organisation if you need experts to guide you and your employees on tax savings, TDS calculations & PT & PF deductions; then it's time to outsource it to experts.
Hope this might help your purpose here.
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3rd October 2016 From India, Hyderabad
For instance, an HR function like talent development is critical for a company to identify and groom its future leaders. However, payroll is a more process-driven task that can be outsourced effectively, thereby freeing up HR’s time for the company’s mission-critical HR needs.
What functions stay in-house and which are outsourced to an outside specialist depends on the type of company, its strategic priorities, and the role HR plays in realizing those priorities.
Here are the HR functions that are most commonly outsourced:
• High-volume recruiting
• Temporary staffing
• Background checks and drug screening
• Benefits administration
• Creating/updating employee handbooks and policy manuals
• Compensation program development/implementation
• Writing and updating affirmative action plans
• Providing sexual harassment training
• Independent contractor compliance
10th July 2019 From India,