HR Outsourcing – the new kid on the block.
In a nutshell, HR outsourcing is buying an HR Service (that you currently do yourself) from a third party. A huge range of tasks can be outsourced these days, including business process outsourcing, public sector services, contact centres, customer support and IT functions. HR is the new kid on the block.
There are 4 good reasons to outsource HR Administration. Done right:
- Your current team can concentrate on how people strategy can support business growth rather than spend time on administration.
- It standardises processes across countries and continents, so improving accuracy, efficiency and providing better data analysis.
- From a Risk Management perspective it enables better compliance protection.
- HR Outsourcing generally cuts costs because of technology, dedicated but cheaper resources and reduced office space that support the organisation’s bottom line.
What’s not to like?
But beware, because HR Outsourcing and offshoring have many complexities; knowledge transfer, legislation, technology, resourcing the right people to represent your business, how to monitor and control a service you can’t physically see on a daily basis, and so on. One thing is certain, many of your concerns will be people based and our experience in this confusing field can help you to cut through the complications like a hot knife through butter.
Once you take the decision to outsource HR Administration you can also consider shifting to a provider abroad who can complete HR tasks, payroll and recruitment at a lower cost than you can in house. The decision of how much of the service you currently provide revolves around the complexity of processes, legal and cultural requirements, language needs and resource capability.
The key to successful HR outsourcing is scrutinising your current HR service before the work is transferred, so that you can replicate what works well and change what does not……and remembering that behind every request the service receives is an employee – a person – a human being!
Outsourcing HR Administration will help your managers spend less time doing paperwork and give them more time to devote to improving the effectiveness and efficiency of your people.
And finally, it is worth remembering that Human Resources isn’t a department, something that we do, or a strategy. It’s our people, and our people run our business.
Ruth Gawthorpe has worked in outsourcing and offshoring for 15 years and is an expert in outsourcing and transforming HR Services. Call now if you are considering outsourcing your service – 07976 509 551.