5 HR functions that you can outsource5 HR functions that you can outsource https://www.easyhrworld.com/wp-content/uploads/2019/07/online-training-software2-1024x683.jpg 1024 683 Ehsan Memari Ehsan Memari https://secure.gravatar.com/avatar/561b7c995d7cf05569ee76a4d9f8ef0f?s=96&d=mm&r=g
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Let’s face it: It’s challenging to run a business smoothly with your HR team drown under piles and piles of files and paperwork. This is why the majority of employers today are turning to HR outsourcing. After all, having some external support is not a bad thing. Here are the 5 HR functions that you can outsource.
According to Global Industry Analysts, Inc., a renowned market research corporation, the HR outsourcing market is anticipated to develop to almost 54 billion USD by 2020 as corporate owners resort to other corporations for help in handling vital HR functions.
Benefits of HR Outsourcing
But why should you opt for HR outsourcing? These are a few significant benefits:
● It saves time by allowing your HR team to work in parallel with the external subcontractors and accomplish more in less time
● It improves compliance, flexibility, and speed of response
● It enhances staffing and training competencies
● It reduces the cost of hiring HR experts and installing HR IT systems permanently
● It allows access to HR expertise that’s not available in-house
● It frees your HR resources to function more purposefully
Ways to Outsource HR Functions
Now that you know how promising outsourcing can be for your company, we’re sure you’d like to know how to go about HR outsourcing.
There are countless ways in which you can outsource your HR operations. For instance;
● Corporate process HR outsourcing, where an exterior contractor manages distinct HR undertakings, for example, payroll management or staffing, or possibly the entire HR function.
● Shared service HR outsourcing, where only the contractual or managerial components of HR’s undertakings are outsourced to an outside contractor. This may comprise a single interface with workers.
● Application (and amenities) service, HR outsourcing, where are external suppliers watch over the technical (and physical) arrangement to sustain HR undertakings.
Top 5 HR Functions that can be outsourced
Here are 5 HR functions that you can outsource:
1. Payroll Management
Payroll management is a difficult chore that can eat up most of your time. According to the National Small Business Association, almost 30 percent of small business proprietors spend more than 6 hours per week on payroll tax management single-handedly. You can also fall victim to severe financial penalties if you fail to pay taxes on time or commit mistakes in doing so.
Outsourcing your payroll management tasks can help you save time and funds. It allows right payroll specialists to handle your payroll taxes so that you can shrink your tax obligations and accountabilities and ensure that your company complies with any payroll guidelines and protocols.
An external subcontractor can also provide you with access to online payroll facilities so that you can keep an eye on payroll information, offer access to statements, and track time in a single online site.
2. Staff Rewards and Recognition Management
One of the primary responsibilities of an HR department is to manage employee rewards and recognition programs in the company. However, an increasing number of companies today are outsourcing this responsibility to external specialists.
Recognition and rewards programs include offering incentives and support for preferred worker performances in capacities such as efficiency, sales, office security, terms of service, and collaboration with colleagues. However, managing these programs can be difficult for your HR team.
Even if the employee recognition program in your company only identifies staffs for terms of service, it includes numerous responsibilities for making it useful. For example, you need to design and acquire commemorations, certificates, or gifts.
Managerial responsibilities upsurge as the program becomes more multifaceted and specific. External specialists can be taken onboard to handle several of the mundane errands of rewards programs which will free your HR resources for other tasks.
3. Recruitment and Temporary Staffing
Subcontracting is not a magic bullet for staffing; however, numerous administrations are testing it and finding it beneficial.
Accomplishment in subcontracting outside staffing is reliant on outlining and positioning an operational talent-sourcing approach, choosing a suitable capacity for testing staffing outsourcing in the business, instituting substantial performance anticipations and processes, and cautiously choosing a staffing companion. The prospective welfares comprise constructing a premeditated partnership centered on attaining rare talent indispensable for the administration’s triumph.
By outsourcing your recruitment and temporary staffing, you can take full benefit of flexible opportunities that transform a fixed expenditure into a more controllable adaptable investment –a flexibility that allows the business to acclimatize to the fluctuations of an inconsistent market.
4. Risk Management Outsourcing
One more benefit of outsourcing HR is that it can help you maintain risk management practices linked with employees’ compensation as well as unemployment rights. As far as employees’ reimbursement is concerned, you should be alarmed about not only preventive damages in the office but also the continuing expenditures of employees’ compensation protection.
Whether you own a large scale business or an unobtrusive agency, there’s always the risk of workplace injuries. As per the Occupational Safety and Health Administration (OSHA), businesses recompense nearly one billion dollars every week for direct employees’ compensation expenditures alone.
Outsourcing your risk management function can help you restrict office injuries and increasing expenditures via a blend of budget control and damage avoidance policies. These comprise office safety processes, such as protection training programs, developing a security handbook, and producing strategies that decrease damage threats. By diminishing exposure and maintaining adequate accounts, you can obtain rate markdowns, in addition to making your company a safe place.
An additional problem is the influence of unemployment duties on your result. Although inevitable, these duties can be managed. And, you can still take actions to decrease them so that you restrict the monetary loss to your company. An external specialist can produce or refine worker guidebooks and thorough work explanations that make job prospects clear. He/she can also maintain archives of any transcribed notices, instances of poor performance, and other documents that can help defend you against unemployment entitlements that will result in higher taxes.
5. Benefits Management
Did you know that in general, HR executives spend almost 25 to 30 percent of their time handling worker benefits? After all, they must safeguard their companies’ end product while upholding worker gratification.
A practical approach for your HR team to realize those commitments can be to collaborate with a third-party benefits management subcontractor.
Through negotiated agreements, bulk procurement and economies of scale, external suppliers provide program benefits that many discrete HR specialists may not be capable of securing as individuals. These subcontractors can also be conscripted to handle the most perplexing fragment of benefits management: the yearly enrollment procedure.
Some of the essential benefits management tasks that you can outsource include call center support, eligibility administration and reviews, and better compliance.
Ehsan Memari is a blogger for SkyPrep, a provider of leading online training software for organizations to train employees’ partners and customers. Ehsan is a regular contributor to blog posts related to knowledge sharing, L&D and eLearning. Follow him on Twitter @ememariAll stories by: Ehsan Memari