When to Seriously Consider Outsourced HR Services
At some point or another, every company finds itself struggling with personnel management. New legislations, evolving paid leave laws, hiring shortages, and changing benefits for workers, are just a few things that can stretch an in-house HR team thin.
Considering outsourced HR services can help strike the balance between cost and efficiency. A trusted third-party vendor can also manage processes during key times of organizational change. It’s time to think about HR outsourcing if you find your company in one of the following situations:
HR has become a cost center
When the administrative work piles on, and inefficient HR processes are not only slowing down your business but also adding to costs, it is time to start making a list of HR outsourcing companies. The perks of carting it out to an external organization is lower office space requirements, fewer computers, and fewer resources. All that can translate into cost savings. Despite its importance, HR is never an income-center for an organization. Getting help with this function can free up resources for core activities that will improve the bottom line.
Growing Business
While considering expansion plans for a business, talent management becomes a key component of success. Scouting and screening applicants, though vital, is a time-consuming process. An HR outsourcing company or PEO can attract the right talent for the job. Their access to a wider pool of candidates and ability to negotiate attractive compensation packages will ensure that your business gets the right fit in half the time and cost it would have taken internally.
Merger or Acquisition
Sometimes, growth is inorganic. Combining your capabilities with another player can give you the clout to navigate the market better. An M&A is not merely an amalgamation of two companies, but also its cultures and people. Human resource needs to be at the center of M&A discussions. When professional HR outsourcing companies manage human assets during such transactions, their experience allows them to decide the right approach to integration, and how to train employees of all parties involved to work best together.
Sticking to the Party Line
HR is a people function. Its primary task is to ensure that employee goals and values are in alignment with the larger organizational mission. As HR takes on a strategic shift with the advent of innovations such as People Analytics, there are two fold advantages to outsourcing your HR functions.
Today, AI enabled HR Tech spearheads employee engagement by facilitating features such as personalized coaching and career development. Outsourcing vendors can provide competitive advantage through such cutting edge solutions. Secondly, through automation of procedural HR functions such as payroll, HR staff can have the much needed bandwidth to focus on the culture factor and create a people-centric workplace.
Although HR outsourcing can benefit an organization, its positive impacts will depend on identifying the right functions and initiatives that need to be commissioned out, with support from the right outsourcing partner.
