A lot of resources and effort goes into running a successful business. Along with great ideas and high-quality products, businesses must have great teams behind them, making the whole operation run smoothly and taking care of everyday tasks. An important part of managing that team effectively is the human resources function.
Human resources (HR) is the department of a business that is responsible for sourcing, screening, recruiting, and training employees, and administering and monitoring employee satisfaction and benefit programs.
While the human resources department is incredibly important for all businesses, many companies don’t have the capacity to run this department in-house. As a result, they turn to outsource solutions.
The Popularity of Offshoring HR Services
The overall outsourcing industry is growing rapidly, with the global market size of outsourced services valued at $92.5 billion in 2019 alone. Some of the most commonly outsourced services include software development, admin tasks and, increasingly more, HR functions. In fact, HR statistics show that HR is the function with the most growth in the industry. The top HR services that can be outsourced according to statistics, include consulting, administration of benefits, time tracking, insurance services and performance management.
There are many reasons why businesses choose to invest in outsourcing or offshoring HR services, including saving costs, improving customer service, and the ability to take advantage of technology not available in-house.
Of course, there are also several other benefits involved in making use of HR outsourcing services. Let’s now explore some of these in more detail.
7 Benefits of Using Outsourcing HR Services
Businesses both big and small can enjoy many advantages in using HR outsourcing solutions. Enlisting the services to a human resources outsourcing provider allows companies to do more for their employees and improve their in-house departments. Here are the most significant reasons why businesses should outsource their HR functions:
- Access to HR specialists and global talent
One of the most exciting reasons for businesses to outsource their HR is having access to expert HR advisors. Sometimes, it can be very challenging trying to hire the right HR candidates in one country. Outsourcing makes it possible to reach talent with new and innovative skills and experience. The priorities of these experts are employees and making sure businesses function optimally with the right teams. The right HR specialists take care of every stage of each employee’s lifecycle, including recruiting and retaining staff over time. These tasks can help to greatly improve a business’ workforce by having the best people on the job.
- Saving money
Even when businesses manage to pull down their HR expenses, the total cost of running HR functions in-house can get very high. It is risky to depend on a single employee to manage all HR functions, including recruitment, payroll, and employee benefits. A full team of HR professionals are required to carry out the different functions. As a result, higher costs are incurred. Plus, workplace expenses increase as more employees need a larger office. The benefit of big and small business HR outsourcing is that costs can be saved on salaries and training, office space, as well as hardware and software required to complete HR tasks.
- Saving valuable time
Keeping in mind all of the different functions that HR teams are responsible for, it’s not difficult to consider all of the administrative responsibilities and paperwork associated with managing those HR functions as an in-house department. All these tasks can be very laborious for existing HR employees. It can also be incredibly time-consuming trying to build an in-house team from scratch. But when businesses outsource some of their HR functions, they free up valuable time that internal staff can use for other important tasks.
- Optimizing business efficiencies
It can be challenging to concentrate on long-term business strategies when there are outstanding HR processes and tasks to take care of. However, when outsourcing HR, daily responsibilities such as doing payroll, recruiting and vetting new employees, reviewing insurance claims, and managing benefits can be unloaded so key employees can focus on other core tasks and growing the business. Investing in customizable HR solutions can also help businesses save time, improve productivity, reduce errors, and assist in better managing work schedules.
- Managing risks
Outsourcing HR solutions can help to reduce business risks. Many HR and employment laws and regulations are getting updated frequently, and it can become very challenging for businesses to remain up-to-date with the latest methodologies. When left in the dark, businesses can risk losing a lot of money in court cases. Luckily, outsourcing providers have HR professionals who keep themselves updated on the latest laws. Furthermore, when HR tasks are outsourced, businesses can always remain assured of uninterrupted services. The bottom line is that outsourcing HR functions give businesses access to knowledge about the latest changes in the field.
- Offering improved benefits
To compete with large leading companies, businesses have to offer more competitive benefits to employees. Attracting and retaining staff is critical to the success of any business. Having access to top HR and employment professionals who can offer expert guidance through various insurance options, present market trends and innovative benefits strategies is a major advantage. Having the right benefits in place can boost employee morale and retain staff over longer periods.
- More flexibility
Flexibility comes as a major benefit of human resource outsourcing that cannot be ignored. Making use of an outsourced provider allows businesses to scale their teams up or down whenever required, without any risks. If more staff is required or more tasks need to be outsourced, it can quickly be done with a suitable provider. There is no need to follow lengthy hiring processes or train current staff on new HR functions.
For any business, a top priority is to ensure all aspects of its employees’ work-life are managed in a way that ensures both their welfare and the improvement of the business. There are many outsourcing HR pros and cons, but by using the right provider for outsourced HR and payroll services, success can easily be achieved.
How to Choose the Right HR Outsourcing Solutions Vendor
When deciding to work with an outsourced HR provider to help ease the burden and keep a company in compliance, it’s very important to find the right partner. However, with such a lot of choices out there, it can be challenging to know what to look for in a good partner. Here are some key considerations to finding the best HR outsourcing services:
It is crucial to consider an HR outsourcing services vendor’s unique approach to working with clients. Not all partnerships are meant to be suitable matches. So, it’s paramount to ask questions about a specific vendor’s approach to taking on new clients, finishing tasks and offering feedback and reports after completion.
When it comes to outsourcing payroll and HR services, it’s essential to make sure the partner chosen has a proven track record of setting up businesses for success. It’s important to ask potential providers for references from clients with similar-sized businesses. These references can be followed up by asking them about their experiences working with the provider, and the quality and reliability of their work.
- Work samples
Not all references will be good sources of the quality of work from outsourcing companies. So, it can be useful to ask for work samples from previous clients. Many outsourcing vendors offering outsourcing HR services have portfolios containing work samples of previous cases.
- Offering a comprehensive range of services
It is recommended to seek a provider who can engage with businesses on as many of their required services as possible. It would prove to be a great hassle to try and contract more than one provider for different services. It’s important to find a match based on how complete the provider’s solutions are, especially on core functions.
- Excellent communication
With any outsourcing partnership, communication is key. Therefore, it is essential to pick a provider that offers a comfortable communication approach from the moment of first contact. A proactive and honest process is a great indicator of future success. Good communication involves quick replies, constant availability and an eagerness to connect throughout the working relationship.
- Access to technology
Technology plays a vital role in the success of HR process outsourcing services models. Therefore, the technology of an outsourcing company must meet the latest industry standards and offer ease of use. They should also have a plan in place for a future technology policy because businesses grow with time and have to stay abreast with current trends.
- Cultural fit
It’s natural to wonder if bringing in a new team from a different region to lead the HR function will impact the workplace culture. To avoid a disconnect with in-house staff, choose a provider that respects the current culture and won’t disrupt the present dynamic or morale. This means finding a provider that understands the uniqueness of businesses and respects different backgrounds.
- Data security
When it comes to outsourcing HR department teams, businesses must be very cautious about the security of their data. During various stages of the partnership, businesses will end up sharing sensitive information about their employees. So, they need to be completely sure that no security breach can take place that would put any data at risk.
The outsourcing market is growing rapidly and, as a result, many new HR outsourcing agencies are opening their doors. This large variety can make it tricky to find the best possible provider for specific needs and requirements.
Therefore, it is so important to follow the right approach in finding a suitable HR outsourcing consulting provider. The process can take some time but is crucial to ensure a successful partnership.
Mobilunity-BPO.com as a Top HR Outsourcing Services Vendor
Mobilunity-BPO is a Ukrainian-based outstaffing company with more than 10 years of experience in providing dedicated teams and excellent outsourcing services for businesses in countries all over the world. We understand how challenging it can be to hire the right teams and find the best quality services for growing businesses, therefore, we offer top comprehensive solutions that suit the needs of modern businesses that are ready to scale.
The team at Mobilunity-BPO is highly skilled in finding and hiring the perfect dedicated professionals to perform a variety of HR functions for businesses, big and small. Some clients we work with specialize in the media, technology, manufacturing and consulting industries. However, we do not limit ourselves and are proud to include clients in all fields.
We work with over 40 clients in more than 15 countries. Our popularity among companies is due to our hassle-free process for every partnership. We provide:
- Customized recruitment solutions that suit unique requirements
- Personalized assistance with the sourcing, vetting and hiring of candidates
- Hardware and software packs for remote teams
- Excellent assistance with onboarding processes
- Continued support throughout every partnership to ensure contractual obligations are met from both parties
We believe our key strengths lie in building long-lasting relationships with each of our clients, following a creative approach to recruiting and staying on top of retaining the top talent for all clients.