5 Vital Reasons for HR Outsourcing

HR is one critical function that decides the foundation of an organization. People

management plays a key role in writing the success story of any organization. So

for any company to rise high on the success chart its core HR services should not

only be intact but also impactful. With so many players entering the market the

companies have to have the best talent to execute their business plans to excel

over their competitors. For the smooth and effective running of a business it is

very important that the people management in the company is highly valued and

retained.HR services not only fetch competent people in the company but help to

add resources that add value to the company and are the key contributors in the

ROI.HR outsourcing has been into practice in the market since a long time but it

gained momentum in the economic downturn of 2008.Verticles like payroll and

accounting are of critical importance and account for proficiency, expertise and

cost. Such verticals are outsourced by companies to save both time and money.

Now with time outsourcing has gradually become a practise for all the companies

irrespective of their domains. The process of outsourcing not only unwinds the

company from the burden of looking for apt people for their company, train and

manages them but also helps as a helping hand to focus on their goals and market

strategy for better deliveries. With the changing market dynamics outsourcing is

not just a trend but has become the need of the hour. There are various reasons

for which the companies should and must consider outsourcing their HR services.

Some of them are as stated below.

Cost Effective: Hiring a candidate not just involves an interview process as it looks

on the face value but it is a process that involves a detailed and descriptive

analysis of the job concerned, the key skills required for the job and the espective

KRA’s related to it. There is a lot of research work that goes behind creating a

position required in the company, preparing the Job description, deciding on the

remuneration part, screening the candidates, interviewing them, taking them on

board, handling their joining formalities, train them, maintaining and cross

checking their documents, handling their salaries and their performance reviews

etc. All these activities in turn are the cost to the company as it involves a lot of

time and contribution. So now an all time solution for this problem is outsourcing

the HR services to a third party which would take care of the entire people

management at their end and the render their services for the company

concerned.

Saves Time: Once the services have been outsourced to a third party the

company is only concerned about the delivery part. The management is not

required to invest their time on people management for their company. They can

rather focus on the USP and the much required marketing strategies to stay

ahead of their competitors in the market. It saves a lot of time which can be

utilized for studying the market trends, their competitors, the changing market

trends and dynamics and formulate their marketing strategies accordingly. The

best part of outsourcing the HR services is that the responsibility of the most

critical function i.e. people management rests on the shoulders of the third party

which in turn gives them ample time for a SWOT analysis which gives them a

clarity on the performance chart as an organization.

Expands Knowledge Base: Outsourcing the HR services gives an avenue to the

corporate to get in touch and interact with the HR experts in the market who are

fully aware and acknowledged to the changing market dynamics and its

requirements and source candidates and HR processes accordingly. It helps them

to get connected and partner with experts who act as HRprenuers. They take the

entire ownership of the HR process and manage them starting from recruiting the

candidates up to managing them.

Helps to focus on the greatest competitive strength: When the management

becomes free from the stress of HR functions it can entirely focus on the key

functional areas and core competencies of its business strategies. This helps them

do a complete SWOT analysis, study and analyze their USP’s and core

competencies and do the necessary changes as and when required to keep pace

with the changing trend in the volatile market and benchmark its services and

maintain the brand value of the company in the market. It also helps the

companies keep a track of the pool of talent available with the competitors and

trace and track them through lateral hiring or head hunting.

Builds Employer Brand: With so many players in the market it becomes very

important for any company to maintain a brand value for the company.

Outsourcing of the HR services helps the company get a professional and polished

image. As when the company hires a third party to manage its HR services it is

actually providing a platform for its brand image to be portrayed and carried

forward among the candidates as well as the corporate which helps in brand

building.