Hr Outsourcing Process

In: Business and Management

Submitted By vipinhemanth90
Words 2068
Pages 9

HR outsourcing is the process of sub-contracting human resources functions to an external supplier.

Different HR functions that can be outsourced:

One can outsource various HR functions depending upon the expertise required. Recruitment is unarguably the most common functions outsourced. However, it is functions like payroll, leave tracking, record keeping, etc.
Recruitment: Outsourcing recruiting makes a lot of sense. The organization will always have the final say in the selection of the candidate, but the screening of resumes, and initial selections can be completely outsourced. Then there are also entrepreneurs who believe that recruitment should never be outsourced to an external party as they cannot fully understand the culture of your organization and will fully understand your requirements.
Administration: This includes maintenance of employee master payrolls, tracking of leaves, any kind of employee redressal and grievances, entry and exit process, paying provident fund and life insurance, and so on. These are people- and effort-intensive activities that can be mastered over a period of time. This is the reason why it makes sense to outsource it to a service provider.
Strategy: This includes setting up a performance management system, building an employee handbook, and undertaking activities that offer value addition for employees.

A number of strategic drivers for outsourcing HR services are: 1. Reduced cost 2. Increased efficiency 3. Access to improved HRIS systems
4. Improved management information including human capital metrics
5. Access to HR expertise not available internally
6. Increased flexibility and speed of response 7. Reduced risk 8. To free HR resources to operate more strategically

The biggest advantage of having an outsourced HR department is that you can concentrate on your core…...

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