Human resource outsourcing is a business solution wherein a company hires an external company to handle HR-related duties, either to assist an already-existing in-house HR department or in lieu of one. This allows companies to keep up with their bigger and more resource-flush competitors without having to stretch their limited budget and manpower. It’s no wonder thatrecommend companies of all sizes to look into this particular business solution, as the benefit of doing so is simply too great to ignore.
Here are some of the many services that you can expect a typical HRO firm to offer your business.
Human resource analytics.
HRO firms are equipped with the technologies necessary to provide human resource analytics to the companies they serve. This service allows them to give unique insights about a client company’s workforce, such as identifying pain points, problem employees, and key performance indicators. All these can help the client company improve their service or product, and thus foster vital and rapid business growth. HRO firms are therefore essential in this regard.
A capable HRO firm should be able to provide the most important services that an in-house human resources department or team performs. At the bare minimum, they should be able to manage the payroll of the entire company. This service is essential to the profitability and health of a business, as it is not only required in order to comply with many business regulations and laws, but also to keep hardworking employees happy and satisfied.
Small businesses and startups can greatly benefit from working with an HRO that provides this service, as working out the many complexities of payroll management can be a taxing and time-consuming affair.
Learning and performance management.
Another service that HRO firms typically provide is the management of the learning requirements and performance development of their client company’s workforce. This usually involves ensuring that specific employees undergo proper training and seminars that can help them perform their duties at work better. HROs can also help their clients figure out ways to improve employee performance if they are found wanting or deficient in key areas.
Businesses that employ HRO firms who offer this service can significantly improve the skill and competency of their workforce and enjoy the resulting increase in productivity and profitability.
HRO firms can assist companies in their recruitment efforts, or even handle the process completely: from headhunting and sourcing to screening, selection, background checking, and finally up to the hiring itself. This allows the client company to focus its energies and resources towards more important activities that can lead to business growth.
Hiring an HRO to recruit new personnel also lets the client company leverage the firm’s experience, technologies and methodology in selecting and recruiting personnel. This ensures that all new hires will not only be qualified for the job, but are also guaranteed to have outstanding character and strong work ethic.
Companies today are not only legally required to handle their customers’ personal information with utmost care, but that of their employees’ as well. HRO firms can assist companies in this by organizing and controlling the information they have on their employees. This ensures that the company is 100% compliant of all regulatory and legislative requirements when it comes to the collection, use, storage and disclosure of the data they have about those in their employ.
These are some of the more important services that a human resource outsourcing firm typically provides clients. As we can see, these services can go a long way towards helping a company achieve the business growth they deserve without the accompanying high overhead costs.