Human Resources Outsourcing Functions
Traditionally most companies used HRO to support the most basic functions of recruiting, compliance management and employee benefits. Companies are finding new ways use HRO as a full service solution to reduce costs. Below are the basic functions provided Human Resource Outsourcing providers.
Human Resource Management
At the core of many HRO provider’s offerings are their Human Resource Management services. HRM typically offers solutions for almost all business management functions from administrative to employee orientation. They can assist in defining your company’s employee handbook and HR manuals, to ensure compliancy. HRO providers will also offer new hire kits and training handbooks.
An HR strategist(s) does this with the goals of streamlining current HR and identifying any room for improvement. This is a less comprehensive, but potentially more effective option with HRO.
Online Payroll Processing
Processing payroll services is a very popular function of HRO. A provider will service your company by handling all of your important payroll reporting and processing needs. It typically includes employee tax filings, paycheck processing as well as end of the year tax forms. Offering a wide variety company metrics to help your company track and evaluate HR costs. Payroll processing is often integrated with a full service HRO package.
Administration of Employee Benefits
Looking at the graph, 84% of companies are using HRO to satisfy their needs with 401K services. Benefits administration will assist your company in the planning and procurement of employee benefits packages. The purpose of benefits administration is to support your employees and make sure that your company is in compliance with all Government regulations. HRO service providers may also be able to negotiate better rates on coverage of employee benefits.
Human Resource Management Technology
A popular technology in HR outsourcing is a shared intranet, which will be accessible by your company and the HRO provider. This will allow you to track and maintain your HR needs. This allows for a common ground for the company the HRO provider where all data and information will be kept. However, the technology varies depending on the service provider and your HRO plan.
In addition to these functions, recruitment services are growing steadily in popularity. With recruitment, a provider acts as a company's internal recruitment function for all or some of its job recruiting. HRO providers will often manage the complete recruiting and hiring process. This often includes going to the extent of issuing background checks for potential employees. The outsourcing company will leverage their knowledge of employee effectiveness to pair your business with employees that fit your company culture and requirements.