To meet the growing complexities in HR department, many companies are outsourcing such services to broaden the scope of their human resource services. There are several third-party human resource service providers who not only take care of the back office transactions like payroll and benefits administrations but deal with the entire HR departments. The concept of human resource outsourcing has been embraced by senior HR executives as well as top managements like CEOs and CIOs of a company. The services offered are appealing all sizes and types of organizations. The benefits of outsourcing are more evident for mid-size companies. Some of the benefits of hiring HR outsourcing companies include:
- Better strategic workforce management
- Proactive problem solving
- Less administration
- Better counsel to leadership
Human resource outsourcing is a great option for companies as it allows them to outsource their non-core competencies and companies can use the time and resources to focus on the more strategic business aspects. The human resource service providers will take care of all your non-value added activities as well as will allocate their resource and efforts towards more strategic initiatives to support the company's goals, objectives and mission. This made HR a Strategic Business Partner for companies, especially when it comes to providing value added information.
However, there are certain steps that companies need to follow before opting for outsourced employers human resource solutions. The first step is to check their corporate culture. Businesses need to evaluate whether the organization is comfortable with giving up some control to a third-party vendor. In addition, businesses need to assess their current HR processes by determining the effectiveness of their human resource processes. They also need to evaluate the process to determine whether or not it is possible to hand over the task to a third-party human resource service provider to manage. Finally, companies need to do some performance measurements. It is essential to ensure that the company has the required metrics to measure the vendor's performance as well as to determine if the human resource outsourcing is actually improving workflow and processes.
Communication plays a significant role in outsourcing and change management. Top managements need to communicate the change needs honestly, openly and quickly throughout all the organizational levels. Employees must be aware of the shift in HR and the implications of it.
Another important factor that companies need to consider is providing a guaranteed job security to your employees at least for a specified period of time. The members of HR department are mostly likely to be hesitant to embrace human resource outsourcing due to the fear of losing their job. Though there is a possibility of certain elimination, you need to explain them that it will be mostly a shift in responsibilities. Thus, open and honest communication is essential for a smooth shifting of responsibilities.