HR Outsourcing?

What is HR Outsourcing?

Any activity, in which a company lacks internal expertise and confidentiality and requires an unbiased opinion on human resources, can be outsourced. An important reason why various businesses turn to outsource HR services is that they do not have the time or expertise to deal with the situation or we can say that Outsourcing of HR Activities which are more of day-to-day or month-to-month requirements

What can be outsourced?

• Alcohol and Drug Test
• Employee Background Checking
• Employees Benefits Administration
• Employment Screening
• Payroll Administration
• Regulatory Compliance
• Salary Surveys
• Time & Attendance Tracking
• Employee Liability Management
• Hiring and Recruiting
• Employee Training
• Performance Management
• Database Management

Why HR Outsourcing?

HR Outsourcing helps in

• Cost-savings: Costs are reduced primarily for companies that are extremely large and inefficient. But the savings are there, freeing up capital for other ventures.

• Improve the quality of service with high speed of accuracy

• Standardization of HR Process and Systems

• HR professionals can be more strategic: rather than being forced to enter data, crunch numbers, and push paper, HR professionals can focus their efforts on improving company-wide systems and procedures. HR professionals can maximize their expertise when they are relieved of administrative tasks.

• Better technology: HR Outsourcing providers keep up with technology, plain and simple. It’s their job to do so. Companies can avoid the expense of upgrading their own technology by outsourcing human resources

• The CEOs, Line Managers expects HR Department to play role of a strategic partner for business growth. The core aspect of HR function related to strategic partner for business growth. The core aspects of HR Functions begins with attracting and retaining talent, building people capability in the organisation, developing a leadership pipeline and creating a learning organisation

Disadvantages of HR Outsourcing

• Loss of managerial control, because it is more difficult to manage outside service providers than managing one’s own employees working possibly in the same building.

• Often the hidden costs are difficult to calculate or prepare for. These include legal costs related to putting together a contract between two companies and the time spent to coordinating the contract.

• The fear of losing jobs

• Threat to security and confidentiality. If your company is outsourcing processes like payroll

• Outsourcing stigma Again, there is already a stigma surrounding outsourcing. Opponents of this business practice cry foul because jobs are being sent overseas to employees with considerably fewer skills and less expertise.

Whether to go for HR Outsourcing or not?