What is human resource outsourcing?
Managing a business and taking care of all the different moving parts is a challenge. As a business owner, it is up to you to make decisions about the most appropriate services to outsource, and which ones to keep in-house. Many businesses choose to outsource Human Resources (HR) services; this is because of the high level of skill and knowledge involved in HR and the potential high ongoing cost of employing someone in-house to manage HR. Continue reading to find out exactly what is human resource outsourcing.
At Bramwell Partners we help businesses with HR support so that you can meet the demands of running a growing compliant without compromising on your compliance and management needs.
What is HR outsourcing?
HR outsourcing is the transferring of one of your business processes or elements of your business to an external HR consulting agency. Outsourcing in this manner is helpful because it allows you or key persons within your business to focus on the core competencies of your business. Many HR functions are complex and time-consuming, and it makes sense to focus on what you are best at, instead of spending great swathes of time managing infrequent – but labour-intensive – HR tasks.
- HR outsourcing can take the form of business process HR outsourcing. This takes place when a business outsources HR activities such as payroll, administration and recruitment to an external provider. You can engage in full-service HR management where an external provider takes care of all aspects of HR work.
- HR outsourcing may see your business outsource discrete tasks, such as the administrative elements of your HR work.
- You may wish to outsource the technology side of your HR needs and have an external provider manage the infrastructure that supports your HR activity.
Whatever tasks you choose to outsource, know that you are investing in more time in your business if you do choose to outsource HR to external HR consultants.
What HR functions can be outsourced?
As we mentioned above there are numerous services and functions which are capable of being outsourced. You can outsource simple tasks to an HR provider, or you can work with an HR support team to provide more complex tasks, such as:
- Recruitment management
- Training and development
- Organisational restructuring
- Staff development for management roles
- Department tracking and KPI planning
- Strategic development for business growth
- Employee onboarding and exiting
Again, the way in which you choose to work with your HR provider will depend on your business needs; you may have a period of growth in which it makes sense to bring an HR support provider on board for this period. This is when the benefit of an HR consulting agency comes into play; you can bring an external provider on for a period of three months, and then finish with them when they are no longer needed. This saves money as you only pay for what you need.
What types of HR functions are generally outsourced?
While you could potentially outsource any number of HR processes, there are some services which are more commonly outsourced than others. These include:
- High-volume recruitment
- Temporary staffing
- Relocation services
- Employee coaching
- Writing and updating business management plans
- Employee handbook and induction manuals
- Workplace health and safety consulting
- Quality management systems planning
- Leave policy management
- Letter of offer services
- Recruitment checklists
- KPI development
Your business is unique, and you may not have all of these demands in place. Note that whatever you spend the most time on in your HR administration may be the task you would benefit from outsourcing the most.
Benefits (and potential factors to be aware of) when outsourcing HR
There are numerous benefits to outsourcing your HR services, not least of all the time and money saved. When you outsource your HR services your business will benefit from:
- Increased efficiency
- Access to a wealth of knowledge and information
- Increased agility and speed of response
- A reduction in your overall risk
- Access to improved IT systems for managing HR
Business owners need to be aware that outsourcing HR services are not a substitute for good people management and overall business responsibility. You need to understand the service you are outsourcing so that you can provide sufficient guidance to your HR provider.
Want to know more about what is Human Resource outsourcing?
Contact Bramwell Partners with any questions you may have or if you want to know more about what is Human Resource outsourcing. Many businesses choose to outsource HR as a way to manage operational costs and to take advantage of an expert service. Is this something that could be right for you? Enquire now to find out.