Human Resources Outsourcing Roles
Choosing the role of your HRO provider will depend on the level of involvement and the basic needs of current HR system. There are three basic levels of Human Resources Outsourcing.
- HR Strategist
If your company has a current HR department that is swamped with work or lacking experience, an HR Strategist may be the best option. This service allows for an outside expert consultant to analyze your current HR needs and determine what needs to be done. The strategist may choose to focus on one of your major issues or completely change the structure of your HR system. The strategist will work with both management, and your current HR to streamline business processes.
- HR Provider
This is a traditional “overseas” HR outsourcing option where the HR Provider will undertake the responsibilities of administrative job functions for the contractor. The HR Provider will often be affiliated with other, similar companies. This will allow the HR provider to offer cheaper services by standardizing routine functions of human resources like payroll services.
- Professional Employer Organizations
Human resource providers are quite similar to professional employer organizations because both fulfill the administrative and financial roles. Managing your company's payroll, hiring, and employee orientation. If you are a small to midsize business and believe that you could benefit by optimizing your current staff to revenue generating activities professional employer organizations may provide the most comprehensive approach to HRO. PEO and employee leasing will partner with your company and take over all the functions of your HR. They will control employer records for employees, and take responsibility for everything from payroll to hiring. Building an HR department is often costly, and PEOs are particularly attractive for companies who have not yet invested in internal human resources. Without HR to worry about, your small business will thrive by devoting more resources to revenue generating activities.