Buyer Guide to Human Resource Outsourcing
Outsourcing human resources is a practical, effective option for companies looking to stay ahead of the curve. According to a Hewitt survey, “82 percent of responding companies indicated they have achieved the expected benefits from outsourcing.” Whether your company has a current HR system in place or you are looking to improve your employee relations; knowing the basics of Human Resources Outsourcing (HRO) will help you make more informed decisions. HRO providers personalize their services to your companies HR needs to help cut costs and improve value, while leveraging in-house core competencies.
HR is an indispensable tool for all companies. However, the roles of HR services within a company depend on a number of factors such as the size of the company, corporate culture and structure. HR ensures that your company’s administrative department is hiring the right people by conducting background checks and paying the correct benefits. They will also deal with employee relations, corporate ethics and payroll services to ensure the safety and sustainability of your company. With all the job functions HR secures, you may think it is the best decision to keep HR in-house; but small to midsize businesses everywhere are jumping on the HRO bandwagon.
HR outsourcing is a growing industry because it offers alternative benefits to the traditional in-house HR department. Outsourcing essentially means alleviating a portion of your company’s responsibilities to a third party. This option is particularly attractive to companies that may not have designated employees with expertise in that particular field. However, for companies who have an established HR services department in place outsourcing HR can be equally as functional.