Human Resource Outsourcing

Chief HR Officers of leading organisations are now a days aiming to leverage Human Resource Outsourcing(HRO) as a sustainable and competitive method to manage costs and allow the company to focus on major improvements and core competing activities rather than managing the transactional activities in the HR operations.

The Society of Human Resources Management(SHRM) conducted a survey of hundreds of companies about the outsourcing habits and the results are as follows:

1. 26% of companies outsource to save money: outsourcing helps reduce the cost of maintaining non-revenue generating back-office expenses. Outsourcing costs are variable and can be reduced accordingly.

2. 23% of the companies outsource to focus on strategy: outsourcing helps a company to focus on major tasks and formulating strategies and improving a firm’s competitive strengths. Outsourcing helps to focus more on planning.

3. 22% companies outsource to improve compliance- it is increasingly risky not to meet the law requirements and pay attention to various employment and labour laws. Also better audit practices can be complied with.

4. 18% of companies outsource to improve accuracy and efficiency: helps employees and managers spend less time doing paper work and more time is thus dedicated to improve the efficiency and effectiveness of the workforce.

5. 18% companies outsource due to a lack of experience in-house

6. 18% companies outsource to take advantage of technological advances: outsourcing can offer great solutions without a significant investment. It helps streamline important functions such as payroll, benefit administration and compliance management.

Among top 10 Human Resource Outsourcing companies includes:

1. ADP

2. Evernext HR

3. Insperity

4. Jumpstart

5. MMC HR

6. Operationsinc

7. Oasis Outsourcing

8. ProHR

9. ThinkHR

10. Trinet

Human resources outsourcing makes sense especially when the size of the company is large and departmentalised into various business levels, whwre compliance and legal liabilities can be a huge risk and also paying attention to employees and trade unions become mandatory. No doubt Human Resource Outsourcing can help an organisation gain a competitive edge!

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