In recent years, HR outsourcing has become a very popular alternative to hiring and keeping employees. Because companies have many different needs and cannot possibly keep every employee they have, HR outsourcing is a great option for companies with a large payroll. Hiring an outsourcing firm means you don’t have to train an in-house HR team, you don’t have to worry about finding qualified personnel, and you don’t have to provide on-the-job training. Many companies are already benefiting from HR outsourcing because they are saving money and time without having to sacrifice the quality of their employees. However, is outsourcing HR right for your business?
HR outsourcing is basically the use of a third-party service to manage any or all of your company b’s HR functions. Outsourcing HR saves both time and money for your business, but perhaps your employees would prefer working directly with within-company HR staff. That is a legitimate concern and one that should be addressed during the planning stages of your outsourcing campaign. Here is a brief explanation of the main business functions that should be outsourced by your outsourcing firm:
Human resources outsourcing HR services is not just about hiring the people that your business needs, but it is also the process of integrating those individuals into your work model. While many companies are forced to hire and train new staff members on a full-time basis, outsourcing HR allows you to fill the gaps in your workplace with seasoned professionals that already possess your business’s valued human resource management skills. If your HR department is composed primarily of individuals who haven’t held or are not trained in HR-related tasks, outsourcing HR can help close that gap immediately. For an in-house-based HR department, the process of incorporating new staff members can take up to a year before it becomes a full-time practice.
Payroll outsourcing HR services is perhaps the most important aspect of a successful outsourcing strategy. In order to effectively outsource payroll functions, you must have an experienced team that can manage and maintain the payroll processes required by your business. The right outsourcing HR provider will ensure that they can easily and rapidly provide your company with the payroll services it needs at any time. Whether you need a payroll service for your sole store or an accounting function for all of your departments, your chosen outsource company can offer this as part of their inbound outsourcing package.
Internal HR implementation is an often neglected but essential element of an outsourcing campaign. Internal HR processes should always remain compliant with any federal, state, or local laws. Additionally, compliance should not stop you from using internal HR processes to reward and retain your best employees. After all, good employees deserve to reap the rewards of their contributions, while bad ones get punished. While you may enjoy some short-term benefits by laying off an extra set of people, you are doing nothing to solve your employee retention problems. By continuing to use internal HR processes in these situations, you are engaging in a form of employer favoritism and discriminating against your employees.
Another major concern related to the HR department is the promotion and recruitment of employees. Many companies utilize an outsourcing package to hire additional staff by utilizing theirs in-house advertising and marketing departments. While these methods do appear to work, they are far from cost-effective and inefficient. As a matter of fact, by outsourcing your entire payroll function, you can significantly decrease your cost of employee’s salaries, which will lead to an overall increase in customer satisfaction and loyalty.
One aspect of outsourcing that many businesses do not consider is the potential pitfalls that are present when relying upon an in-house employee recruiter. There are many negative aspects to using an in-house employee recruiter, such as improper interviewing, a lack of appropriate referrals, and a lack of employee screening for job openings. These recruitment efforts also fail to screen out employee fraud and identity theft, which compromises the confidentiality of your business. Additionally, there is a direct conflict between outsourcing your HR functions and retaining your current employees. If you decide to outsource the HR function, then you are losing valuable workers, and potentially more importantly, your business is at risk.
In conclusion, outsourcing HR does not have to be the complete end of your strategic hr plan. It is perfectly fine to rely on an external resource to complete some of the more mundane human resource functions such as maintaining your personnel records and processing employee pay. At the same time, outsourcing HR functions should be done in a manner that maintains a strong partnership with the business. In addition, it is important to monitor the outsourcing process and ensure that the outsourcing company is staying true to your business’s goals and values. As long as you implement the correct process, outsourcing HR will prove to be a worthwhile investment for your business.