As the COVID-19 crisis is peaking, so is its impact on businesses. One of the areas that have been affected the most is human resources. As organizations adjust to the new normal, HR professionals are getting busier than ever. During such testing times, investing in HR outsourcing is a great option to invest in and shift focus on strategic organizational issues.

What is HR Outsourcing?

In an article published in Personnel Today, HR outsourcing is defined as “the process of sub-contracting human resources functions to an external supplier.”

It is a contract between a third-party provider of HR services and an employer wherein the former supports the latter to get well-suited skilled employees for specific projects and managing other HR functions. Some of the primarily outsourced HR functions include selection and recruitment, payroll management, employee management, staff training, job evaluation, etc. An organization may decide on the HR activities that should be outsourced to drive value it’s way.

Why should companies outsource HR?

Many HR functions are quite people and effort-intensive but are repetitive. It is better to allocate these routine tasks to a third-party specialist who delivers timely and excellent results through standardization of processes. Outsourcing HR functions allows internal HR teams to spend time and energy on more growth-oriented activities—something which is critical to keep your business afloat in the COVID and post-COVID era. Besides, the company should also continue to perform key HR roles such as retaining talent, resolving employee concerns, managing reward and compensation, and bringing about strategic change in partnership with line managers. Consider your organizational budget, size, and strategic plans to evaluate if you need a full-time or part-time HR outsourcing service. All in all, the following contribute to any organization’s decision to outsource its HR functions.

Enabling organizations to pay more attention to core operations
Introducing cost-efficacy–whether direct or indirect
Iii. Allowing the shift of focus from internal processes to the achievement of business goals

Ensuring legal compliance, adherence to regulatory frameworks, and introducing global best practice
Realizing investment in HR transformation and IT system
Taking risks and liability of people issues on behalf of the company
vii. Supplying skilled manpower on for full-time, temporary, and contractual positions

How to Implement HR Outsourcing Successfully?

The range of HR services you want your outsourcing partner to perform depends on the level of support your company needs. It is best to strike a balance and outsource those activities which you think take most of the time of your workforce. The more you can outsource such HR functions, the more the time you will get freed up for focusing on running the business.

HR vendors offer different skills and services; so it’s important to research well. Choose an HR outsourcing company where you will get a dedicated support system. Enough information and details about your organization’s current practices and goals should be provided to help them understand your company’s culture. Another prudent step in the process of working with an HR outsourcing firm is to keep your employees involved as this will help them feel comfortable with the transition.

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