Do you think that your HR department is overburdened with paperwork? Do these tasks make it difficult to focus on core business and productive functions? If the answer to these questions is an affirmative nod, then outsourcing HR can be an effective alternative for the problem.
Hiring outsource employee means we hand over particular functions of the company to the third-party resource. On clocking in the deal, the outsource vendor will provide you with readily available skilled labour.
Since the 1970s, many large companies use outsourcing as part of their business strategy to increase creativity and flexibility. As leaders are increasingly aware of the importance of re-focusing on their core business, economists suggest that outsourcing is more than an instantaneous fad or trend.
HR professionals are trusted with umpteen responsibilities in an organisation, such as employee hiring, retaining talent, training and mentorship, development, payroll, legal compliance, and many others. Many at times, HR is troubled with data and other administrative miscellaneous activities, which actually can be done by non-HR professionals.
Based on a survey conducted by The Society for Human Resource Management, there are several reasons for companies to outsource their HR functions. The most common reason being to reduce labour costs and operating expenses, since it saves the company investing money into talent recruitment and training.
The other reason being, HR when outsourced, allows greater access to HR expertise which can back up for the lack of an in-house HR officer. Moreover, outsource HR helps control risks, abide by legal laws, and compliances such that the company can streamline HR functions.
Before hiring outsourced HR personnel, managers are required to identify the key strategic role of HR in the company. Some functions that require decision-making and strategy such as capital investment strategy and planning, and performance management is limited to the scope of in-house HR professionals. Below are some HR functions that can be outsourced to improve productivity.
See: 3 Roles Startup Leaders Should Outsource
For small-scale businesses with limited personnel, it is almost impossible to conduct high-volume recruitment by themselves. Thus, hiring outsource HR will help cover up for the shortage.
Rather than spending time and money on new hires, using outsource HR services is more efficient, when you need temporary staff for short-term project.
To avoid recruiting the wrong talents, outsourced HR can be hired to deal with papers and files to screen candidates and verify backgrounds before recruiting them on board.
Writing employee handbooks and policy manuals is more than a mere formality, it should represent the company values. However, if you think this process requires more time and attention, then it’s better to outsource this task to an HR expert and get this done in lesser time.
Whether it is payroll, healthcare, pension, or retirement benefits administration, you can trust the outsource HR personnel to look into all clerical and administrative tasks.
When one of your employee need to be relocated, with your permission, outsourced HR personnel will help prepare all necessary documents and files.
Employee development is vital for the company to progress and grow. However, since this can prove to be a bit expensive, it is better to use third-party services that offer coaching and training.
Read also: In-House or Outsourced HR Team: Which One Is Better For Your Company?