We are all acquainted with the idea of an HR department. The main function of an HR professional is hiring and firing, however, there are a lot more duties that fall under the territory of an HR department. Most companies have their HR reps positioned inhouse. However, present-day business models are becoming pro-outsourcing. How would an organisation be if it outsourced its HR!
What is the outsourcing of human resources?
It is the method by which an organization gives another party a contract to manage the working of its business with regards to the employment of workers and staff. We understand that is a huge decision to make, and that your worries and concerns are reasonable. However, outsourcing your HR department can do your business favour!
The reason why you should consider outsourcing your HR is many and very valid ones too.
(1) Outsourcing is very important to increase the efficiency of the financial aspect of the organisation.
(2) Outsourcing saves a lot of time and money which the organisation can use to plan its future policies. It has been found that organisations that outsource HR functions cut down their cost by 20%, ow that’s a whopping lot!
(3) Outsourcing introduces the business to experts who are trained to do the kind of work required of them. Previously, the business trend used to be that of the owners handling every field. However, not everyone has the knack or talent to execute the functions of the various aspects of a business. When the work is outsourced it goes into the hands of experts. A business has many departments- finance, production, sales, to name a few, and when they are handled by experts, they give better results.
However, the big question that now arises is who do you outsource your HR too? We recommend you go with a well-known and established name such as Employment Innovations.
While looking at HR outsourcing models, you could choose from the following:
(1) Partial outsourcing:
Under this model, an organisation shares some portion of the work with the vendor( as they are called), but it holds the strings and shares only as much information as they think should be shared. They have a say in the working of the vendor, and they also keep control over their methods and decisions. Partial outsourcing is perfect for those who are still sceptical and confused about the proceedings of an HR outsourcing arrangement. You could give this a shot, and see for yourself how beneficial HR outsourcing can be when done right. But, remember here too, it matters whom do you trust!
(2) Complete outsourcing:
As the name suggests, all the HR-related responsibilities are taken over by the vendor, and they are entrusted with the complete functioning of the HR roles demanded by the organisation accepting their services. The company you outsource to could help you with screening the background of the candidates, counselling the recruits, new employees’ induction into the workplace, payroll of employees, offering retirement plans and tax saving schemes for employees, retrenchment of the surplus workforce, health and medical facilities to be offered, etc.
Depending upon the services you need from your HR vendor, these vendors can be further classified into the following categories:
Human Resource Specialists:
This is the foremost responsibility and forms the core of any company claiming to offer HR services. Such vendors usually target bigger organizations that have a large workforce and need their activities to be monitored. These organisations reach out to Human Resource regulating vendors to achieve more productivity and better management within the brand’s circuit.
Professional Employer organizations:
These are better suited for small enterprises and can handle all the administrative jobs of the company. Some of their primary tasks include managing recruitments, payrolls, and annual reviews.
Administrative Services Providers:
They are preferred by big companies, who have a huge workforce and need special administrative expertise. They can help by handling tasks such as record keeping, supervising, and analysing the organisation’s work front.
We hope this article has helped you understand the diverse and wide range of services you could benefit from if you choose HR outsourcing! However, care should be taken while selecting a genuine vendor.
