The Pros of Outsourcing HR

December 22, 20169:47 am835 views

Are you overwhelmed with piles of paperwork and files waiting to be checked? Are you busy always with clerical routine, that leaves you no time to prepare and stay updated of the progress? Are you irritated with mundane administrative functions consuming a major part of your day, leaving no time to focus on productive activities? If your answers to these questions are ‘Yes’, then you should consider outsourcing HR.   

Outsourcing HR has been a booming trend since the 1990s. Based on a survey, 58 percent companies outsource their HR functions. As a vital organisation that supports company’s sustainability, Human Resource department is trusted with plentiful responsibilities. Some of them are administrative tasks that require lots of time and energy to complete.

While we cannot neglect the importance of this function, rather than continuing to be busy in dealing with paperwork, HR professionals should rather pay more attention to strategic plans instead. Based on the survey above, mostly-outsourced HR functions include background checks, employee assistance, and account administration. The key finding shows how HR outsourcing has become a new strategy to help leaders, focus on core activities of their business.

See: Top 11 Predictions Transforming the World of Work, HRM and People Practices in 2017

If you think that you need to outsource HR functions, the advantages of HR outsourcing below will help you decide.

  1.      Lowers labour costs

Minimizing costs is often the main reason behind hiring outsourced HR. Using HR outsourcing services means that you do not have to invest in employee recruitment, onboarding, or training and development, since everything has been taken care by the outsourcing vendor.  Not only does it save on labour costs, it will saves company efforts from the difficulty of employee management.

  1.      Boosts efficiency and productivity

Outsourcing non-core HR responsibilities allows you to focus more time and attention on core business processes. It also provides direct access to professional and skilled labour with particular expertise needed by the company.

Moreover, delegating HR functions to outsource vendors will help the company to deal with cases that are difficult to manage and handle. As result, experienced talents will boost the company’s efficiency, productivity, and accuracy.

  1.      Broadens market access

Outsourcing HR will cater to the demand of growing customers, so you can broaden your market reach. By increasing efficiency and productivity, businesses can be more successful and better-prepared for new market challenges.

Furthermore, hiring outsourced HR professional will provide you better access to latest technologies without owning the same, such that you can make use of it to expand your business globally.

  1.      Allows flexibility

HR outsourcing makes it easier if you want to make some changes in the organisation. Recruiting and training the right talents for in-house HR officer is a long process and quite expensive. Hence, hiring outsource HR for short-term or peripheral projects could prove to be of great help for an effective HR system.

Once the project is accomplished, you can move on to new projects quickly. Additionally, outsourcing gives the flexibility of staffing, human capital management, and all other functions.

  1.      Manage risk

Risk is inevitable in every business investment. In this fast-changing world, government regulations, technologies, financial conditions, and market competition has made HR functions more complicated than ever before.  Outsourcing HR empowers your business with careful risk-analysis that will help manage and provide suggestions on how to minimise the risk.

Also read: How Can HRs Gain Trust from Employees at Work?

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