How Human Resource Outsourcing Can Improve Your Business Efficiency

February 27, 201411:00 am798 views
How Human Resource Outsourcing Can Improve Your Business Efficiency
How HR Outsourcing Can Improve Your Business Efficiency

Over the years modern industrialization and globalization gave way to broader and more complex human resource operations, resulting to a shift in service delivery. As more companies aim for cost effective operations the more is the need for HR outsourcing becomes evident. Of late many organizations are now relying on third party outsource providers for some non-core HR functions and the successful outputs of this business model have them embrace it to its full extent.

There are absolute reasons to consider human resource outsourcing, primarily spearheaded and trusted by just a handful of Fortune 100 global companies. These days HR outsourcing is considered a hot commodity for organizations of any business size. For this reason HR outsourcing easily gained traction with opportunities that allowed both service seekers and providers between cross countries to conduct business.

The business practicality involved in HR outsourcing includes:

  • less administrative work
  • more time spent proactive problem solving
  • focus on strategic HR management such as employee program creation, competencies and remote training

Through Human Resource outsourcing of non-core functions, human resource department can now become a reliable business partner within the company providing key information relevant to day to day decision making processes.

Though some companies find HR outsourcing to be relatively risky, it pays to consider these steps before outsourcing to help in effectively managing risk.

  1. Review the corporate culture and assess its comfort level in terms of sharing control with a third party provider.
  2. Set criteria, based on the corporate culture that will determine the type and business nature of the service vendor that will be considered.
  3. Review and evaluate HR processes and functions that can be delegated confidently to a third party service provider.
  4. Determine the metrics involved that will effectively describe the success of the outsourcing program, including correction and work improvement processes.

Make your current workforce support HR outsourcing

Too often the workforce, including some HR staff, may feel a little resistance to the idea of HR outsourcing for fear of losing their job. It is therefore important to communicate the value of the program to the organization as a whole and how the output can better benefit the workforce. Typically, some duties would be eliminated but new ones will be creates such as vendor management, performance monitoring and remote training to name a few. These new duties likewise prove to be highly important in the success of the outsourcing program, thus require support.

HR outsourcing does not come without challenges, yet despite the variety of reasons, it is a program that is still worth considering. Organizations with active plans of pursuing the program must first consider its risk tolerance and determine the amount of work to be outsourced.

Read also: How HR Outsourcing can help your business save more