Human Resources outsourcing is a business solution that allows a company to focus in its core business. This may be located onshore or offshore either through a third-party vendor for centralized shared services company. In other words, external supplier manages the sub-contracted functions of a company.
By outsourcing HR functions, organizations are able to reduce costs on many core tasks and distribute the workload effectively. It could be possible that a company may outsource either single or multiple tasks depending on the work burden. Outsourcing HR management can be a perfect fit for company’s business.
Reasons that companies employ HR Outsourcing
� Will assist in reducing operating and running costs.
� Will help in reducing the risks to the organization.
� Will provide the company with people who have expertise in Human Resources.
� Lessen running costs and provide space to internal resources
� Share risks with a partner company
� Saves time and improves service delivery
� Catalyst for change and improves company’s focus on its core business
Selection of suitable HR provider takes place according to number of steps as explained below:
HR Management Outsourcing: Selecting the perfect HR provider.
Assessment of HR: You first need to know exactly what traits you want in a HR partner before selecting him. For this purpose, HR evaluation form will help you to highlight the weakness and pinpoint services that are required.
Compatibility: Every HR provider has an expertise in particular niche market in which he can service best including your location, your budget, services required etc.
Financial feasible: It is crucial the HR provider has financials audited by standard certification independently.
Licensing is Compulsory: Ensure that HR provider is authorized to do business in the states you are located in.
Benefit programmes: Make it certain the programme is in accordance with employee needs and affordable.
Software demo: The key to viable Outsourcing HR management programme is an efficient payroll and software. Make it certain that you must have a demo before using it permanently.
Contact references: It is a good technique to contact their clients and ask them questions to check the traits that will fit for your company and properly inform the HR consultancy.
Criticisms of outsourcing HR management
Those who are not in favour of outsourcing the management of HR consultancy will question the impacts on public opinion, staff turnover, respecting shareholder views and ensuring the quality of service is consistent.