HR is a mandatory component of any business. Personnel management is critical regardless of who performs administrative functions: the business owner, the hired HR specialist, or the entire human resources department.
The need for such services is especially vital in business growth and expansion. It is then that there is a need to optimize personnel processes without spending too much money and time. Companies are well aware that HR is the key to satisfied employees and efficient business.
Small organizations need HR services as well. However, it cannot be easy for businesses with limited resources to attract in-house HR professionals and handle administrative duties. What if we said there was a better option? Try outsourcing HR functions, and make your life much easier.
Outsourcing is a common practice that primarily allows businesses to use funds wisely. As for HR services, stay assured that remote professionals can do almost the same job as in-house. There are only a few differences: it is cheaper, faster, and more efficient.
If you plan on outsourcing payroll and HR, this article is for you. Today we will talk about what functions you can transfer to remote mode with the help of HR outsourcing Ukraine. We will also discuss the benefits of outsourcing HR department.
List of Top 10 HR Outsourcing Functions
When you delegate some or all of your human resources and payroll administration functions to a third-party vendor, it is called HR outsourcing. Depending on your needs, you can transfer some daily duties or long-term responsibilities to a remote mode.
Thus, you have many options to organize the work of an in-house and outsourced HR department. You may, for example, delegate only a portion of tasks to a third-party firm while leaving the primary responsibilities to your in-house personnel. Yet, sometimes businesses are faced with the inability to retain in-house professionals. That’s why an outsourced HR manager comes to the rescue.
Let’s assume you’re up to transferring human resources responsibilities to a third party. But how to understand that the service provider will cope with the tasks you need? First, let’s get acquainted with HR functions that can be outsourced.
Payroll services are a routine task, but they are crucial and require constant attention. It is usually one of those HR functions that are outsourced. It entails paying the correct salary to each employee, withholding payroll taxes, and calculating the times for hourly workers. However, this is only the tip of the iceberg regarding what an outsourced HR professional can do for you.
What else does this function include? Let’s take a look:
- Processing of payroll cycles
- Supervision of company workers’ employment
- Preparation of reports on employees’ salaries
- Maintaining time and attendance system
It is one of the outsourcing HR functions that involve direct control over your company’s employees. What does it mean? That your human resource specialist will perform the following tasks:
- Develop and use personnel information systems
- Implement and support employee policies
- Engage in employee service and consulting
- Manage employee information
Please keep in mind that companies usually outsource this function. So, we recommend delegating it to the service provider along with the payroll administration function.
It is another outsourced HR function your company can’t do without. By outsourcing this task, you will be able to discover an experienced professional who will assist you in assembling the team of personnel you need. During this time, you will focus on the most critical aspects of your business.
Let’s see what recruitment services include exactly:
- Search for talents
- Publication of vacancies on relevant platforms
- Selection of candidates according to your requirements
- Conducting interviews and checking test tasks
- Introduction of new employees in the working process
Employee Benefits Administration
Payroll management is not the only thing that should worry you as an employer. It would be best to care about your employees’ satisfaction with their jobs. You can do this, in particular, through the procurement of various benefits. Thus, you may safely start looking for a third-party company to do this.
What exactly does the administration of benefits include?
- Administration of medical and insurance benefits
- Administration of unemployment claims
- Provision of voluntary benefits and employee assistance programs
- Supervision of benefits procurement
- Processing of employee’s benefits-related requests
- Tracking of paid time-off
Why is it advantageous to outsource this function? Everything is simple. The companies that provide such services are well aware of the relevant benefits programs and can find very profitable options for you.
Even the benefits may not be enough to satisfy your employees. To keep your team motivated, you can implement various reward and recognition programs. For doing this, you can seek the help of an HR outsourcing specialist.
Even the most basic programs require time and effort from you.
Look at how the service provider will perform such a function:
- Administrating the rewards and recognition programs
- Monitoring the timely employees’ rewards
- Informing the employees about available programs
- Motivating workers to participate in reward programs
- Issuing the employees’ rewards
Performance management is not meant to make your employees work harder and harder. It helps to adjust the workflow so that workers do not burn out but, on the contrary, are satisfied with their jobs and show promising results. Outsource this function and get an effective team effortlessly.
This function includes the following tasks:
- Conducting staff training
- Searching and offering training programs for employees
- Managing employee performance goals
- Communicating with employees in the matters of productivity
- Evaluating the workers’ productivity
- Identifying the strengths and weaknesses of employees
Sometimes there are instances when you need to relocate your personnel. Since companies do not often face such situations and these circumstances are usually unexpected, outsourcing this feature is a great solution.
Let’s find out what the offshore HR coordinator will do for you:
- Resolving claims from employees
- Checking and paying invoices
- Tracking all costs associated with relocation
- Monitoring the employee relocation process
Your employees’ safety is of the utmost importance. Therefore, outsource this function if your in-house human resource specialist is already busy with other tasks. Why should you think about a third-party service provider? Such vendors have the experience and tools to assess and manage risks and follow the latest workplace safety standards.
Here’s what your outsourced HR director will do performing this function:
- Create and execute your company’s policy
- Formulate and implement a manual for your employees
- Pay the compensation to employees
- Respond to appeals and complaints
- Conduct safety training
Employment and Labor Laws Compliance
Of course, you do not want any problems with the law. And labor regulation, in turn, does not stand still and is constantly evolving. We believe that it is reasonable when a third-party company takes on these outsourced HR functions. Such service providers keep up to date with the latest changes in the laws, so they can help you comply with them.
What exactly will they do?
- Advice on employment laws and regulations
- Check the compliance of salaries with legal requirements
- Conduct anti-harassment training for workers
- Help with employment practices liability insurance (EPLI)
Employee Background Check
It’s crucial to know who you hire. Sometimes you or your in-house HR specialist do not have enough time to check all the candidates. Because of this, a problematic person may enter your company. Instead, if you turn to an HR outsourcing provider, it will do its best to ensure that only bona fide employees come to you.
What exactly is included in this HR function:
- Checking the biographies of potential candidates
- Conducting drug tests
- Verifying the educational credentials
Main Benefits of Outsourcing HR Functions
As you can see, you may outsource a lot of HR functions. You may also have noticed that remote human resource workers can do just about anything in-house ones do.
That is the question of in house vs outsourcing HR specialists’ functions you should no longer have. Both experts do almost the same things, but the second offers more benefits for your company. We will talk about these with you in more detail.
Here are the main benefits outsourcing HR functions:
- Save Costs
HR outsourcing cost per employee is significantly lower than maintaining an in-house HR specialist. Imagine if it’s not one specialist but a whole department. Count all the above functions to this, and you will understand that outsourcing is your way out.
However, you save costs not only by outsourcing HR features. Think what such a specialist can give you? This expert understands all the subtleties of the field and can advise you on the most lucrative ways, so you do not waste money on personnel.
- Save Time
Think about all the ten functions we mentioned before. Each function there entails even more minor responsibilities. Someone has to handle all these tasks, which take a long time to perform. That is why it will be handy to outsource HR responsibilities to a third-party company.
- Get Experienced HR Workers
Imagine hiring an HR specialist. This employee must gain experience and possibly undergo some training to meet all your requirements. Even still, all of this does not guarantee success.
On the other hand, outsourcing companies can provide you with employees with extensive experience, specifically in the HR field. That is why this option is beneficial for your business.
- Boost Your Business Efficiency
As a rule, HR specialists do not just handle payroll administration. They also do everything to ensure that your employees are satisfied and motivated to continue working. Human resource experts will monitor the performance of your workers, ensure that they do not burn out, and do everything possible to guarantee that these employees stay with you as long as possible.
- Reduce Risks
We have already talked about this as one of the functions of HR. However, this is also an advantage of outsourcing such services. By contacting remote HR specialists, you get access to experienced professionals. These experts, in turn, are well versed in legislation and employment issues. In this way, you reduce the risks associated with various law violations. You decrease the likelihood of postponing payments to your employees as well.
Therefore, there are numerous benefits of offshore HR operations. We hope these advantages have made you think about human resource outsourcing and dare to change your business processes.
If you are interested in outsourcing, your best choice is to hire a dedicated HR specialist from an external company. Why dedicated? Because he will devote all his time only to your company and will be able to perform all the functions we talked about in the previous part of our article.
Main Challenges of Outsourcing HR Functions: Overcoming the Hurdles of HR Offshoring
As businesses increasingly seek efficiency, cost savings, and access to specialized expertise, outsourcing HR functions has become a popular strategy. If you’ve ever wondered why companies outsource HR functions, the answer lies in the myriad benefits they gain, such as improved efficiency, cost savings, and the ability to tap into external expertise for optimal HR management.
By entrusting HR operations to external providers, organizations can focus on core business activities. However, while outsourcing HR functions offers numerous benefits, it also presents unique challenges that must be addressed for a successful partnership. In this article, we will explore the main challenges associated with outsourcing HR functions and delve into effective strategies to overcome them.
Understanding the Scope of Outsourcing HR Services
A critical question that arises when considering HR outsourcing is, “What HR functions can be outsourced?” One of the primary challenges in outsourcing HR functions lies in determining which aspects of HR operations can be effectively outsourced. HR outsourcing services encompass a broad range of functions, including but not limited to:
- a. Payroll administration: Handling payroll processing, tax compliance, and managing employee compensation.
- b. Employee benefits management: Overseeing benefits administration, including insurance plans, retirement programs, and leave policies. Outsourcing HR administration can alleviate the administrative burden on internal HR teams, allowing them to focus on strategic initiatives and core HR functions.
- c. Recruitment and talent acquisition: External support for sourcing, screening, and onboarding new employees.
- d. Training and development: Engaging specialized providers to deliver employee training programs and skill enhancement initiatives.
- e. Compliance and legal obligations: Ensuring adherence to labor laws, regulations, and compliance requirements.
Which companies outsource HR functions is a common inquiry among businesses aiming to learn from industry best practices and make informed decisions regarding their own HR outsourcing strategies. A wide range of companies, spanning diverse industries and sizes, choose to outsource HR functions as a strategic approach to streamline operations and access specialized HR expertise.
Identifying Key HR Functions Suitable for Outsourcing
Each organization’s HR needs are unique, and determining which HR functions to outsource depends on several factors. Generally, businesses often choose to outsource non-strategic and transactional HR activities, such as offshore payroll services, benefits management, and employee records maintenance. By offloading these routine tasks, companies can reallocate internal resources to more strategic HR initiatives that directly impact business growth and talent management.
Overcoming Communication and Coordination Challenges
Effective communication and seamless coordination between the outsourcing provider and the client organization are crucial for successful outsourcing human resources. Language barriers, time zone differences, and cultural nuances can pose challenges in maintaining clear and efficient communication channels. Implementing robust communication protocols, leveraging technology-driven collaboration tools, and fostering a strong partnership can mitigate these obstacles, ensuring transparency, responsiveness, and mutual understanding.
Selecting the Right HR Outsourcing Service Provider
When exploring HR outsourcing options, it’s essential to refer to a comprehensive HR outsourcing services list to identify the specific functions that can be delegated to external providers. Choosing the most suitable HR outsourcing service provider is a critical decision that significantly influences the success of outsourcing initiatives. Factors to consider when selecting an HR outsourcing partner include:
- a. Expertise and specialization: Assess the provider’s experience and domain expertise in delivering HR services tailored to your industry and unique requirements.
- b. Track record and reputation: Evaluate the provider’s reputation, client testimonials, and success stories to gauge their reliability and performance.
- c. Scalability and flexibility: Ensure that the outsourcing provider can scale their services as your organization grows and adapt to evolving HR needs.
- d. Data security and compliance: Verify the provider’s data security measures, compliance with data protection regulations, and confidentiality protocols.
Managing Cultural Differences and Offshore Outsourcing
For organizations opting for offshore HR outsourcing, managing cultural differences can pose a challenge. Different cultural norms, work styles, and business practices may impact communication, collaboration, and overall productivity. Building cultural sensitivity, fostering cross-cultural awareness, and establishing shared values can bridge the cultural gap, fostering a harmonious and effective working relationship.
Ensuring Data Security and Confidentiality
When outsourcing HR functions, safeguarding employee data and maintaining confidentiality are of utmost importance. Companies must establish robust data protection measures, including secure data transfer protocols, access controls, and confidentiality agreements with the outsourcing partner. Regular audits and compliance checks can help mitigate the risks associated with data breaches and ensure regulatory compliance.
Outsourcing HR functions offers organizations numerous advantages, including cost savings, operational efficiency, and access to specialized expertise. However, to reap these benefits, organizations must proactively address the challenges that come with HR outsourcing. By understanding the scope of outsourcing, selecting the right provider, managing communication and cultural differences, and prioritizing data security, organizations can navigate these challenges successfully. With a well-executed HR outsourcing strategy, businesses can optimize their HR operations and focus on their core competencies, ultimately driving growth and success.
Mobilunity-BPO Can Help You Hire Dedicated HR Specialists
It’s not by chance that we’ve highlighted dedicated HR specialists. Our company is successfully hiring such experts for our customers worldwide.
Just imagine: we have been in this market for more than ten years. Our employees from Ukraine have already completed more than 1,000 projects for more than 40 clients.
We know better than anyone that finding the perfect candidates and HR experts is no easy task. But based on our experience, we are delighted to help you. What exactly we can do for you:
- Select staff according to all your requirements
- Help you check all the candidates
- Take on all HR issues and employee retention
- Provide the remote team with the necessary software and hardware
- Help employees with adaptation
Interested in cooperation with us? It is great. You can start cooperation in just a few simple steps:
- Apply with the requirements for candidates
- Receive a call from our employee
- Sign a contract with us
- Start reviewing the first candidates
- Choose your ideal employee
It’s simple, as we told you. Yet, the hiring process is not only easy but also fast. Our experts can staff you with the necessary employees in just a few weeks!