Basic HR Outsourcing Practices
Human Resources: The organizational function that deals with the people.
Like most corporate sectors, the job functions of Human Resource professionals are dynamic and changing. Previously, HR managers had primary responsibilities to work in conjunction with executive managers, ensuring corporate policies and administrative functions were carried out appropriately. HR in its primitive form is dealing with the hiring, payment of employees through time and attendance systems. This has shifted, as some managers view HR departments as burdens to their organizational freedom. While the role of HR has been changing in conjunction with executive management, HR still often controls policies and corporate culture.
According to Hewitt survey, in 2006 the top three functions of HR was to attract, retain, and grow talent (67 percent), better support business by focusing HR on strategic/core capabilities (47 percent), and support business changes (41 percent).
This data is in stark contrast with the 2009 survey results which reported that according HR management pressures and overall focus shifted to reducing operating costs (58 percent), better supporting business by focusing HR on strategic/core capabilities (40 percent), supporting business changes (32 percent), and attracting, retaining, and growing talent (28 percent).
HR outsourcing can complement your existing HR; and as your business grows, its specific HR requirements change. Smaller companies under 30 employees potentially require less HR management attention. Smaller companies will likely only have a need for administrative and payroll services, and this makes them ideal for outsourcing. Outsourcing HR allows the company to focus its goals towards revenue-producing activities.
Outsourcing HR can also be valuable if your company grows to the point where the employees and structure exceed capabilities of your current HR department. Leveraging third party support will help forward the strategic operations of your company and complement your HR management approach.