What are the 8 Advantages of Outsourcing HR Functions?

With the industry getting more attentive towards employee satisfaction, managing human resources efficiently for a company of any size is integral. However, keeping the HR policies up to date can be challenging because of constantly changing rules and regulations regarding employment and labour, especially without a sincere staff force staying up to date with local and federal laws. Having an HR setback can seriously affect the pace of conducting business for the worse.

Hiring, training, and retaining an in-house dedicated HR team for your business might be a profound expense, especially for start-ups or small-scale organizations. Hence, outsourcing the HR shared services of your business can turn out to be an intelligent move in this aggressively competitive industry. Investing in an outsourced HR service-providing company will let you focus on more core aspects of the business, which will, in turn, provide a much more streamlined business process. Some other benefits of outsourcing your HR services are: –

1. Access to Knowledge and Expertise

 An outsourcing HR services company is built on an HR theme. It has provided its services to different types of organizations and businesses. Hence, it has diverse expertise over HR aspects and solutions than an in-house human resource manager who is more of a generalist. However, they have in-depth expertise in the human resource realm. So, with outsourcing your HR services, you can have access to the expertise of these professionals as well.  

2. Familiarity with Government Rules and Law

It can be pretty grueling to keep up to date with the ever-changing rules and laws of government and comprehend. Those laws formulate HR policies and further improvise them. A virtual hr services provider has a team of proficient professionals. Who is up to date with all kinds of HR-related news and updates? And who is available whenever their expertise is required on any matter such as taxes, compliance processing, and more? 

3. Increased Efficiency

Having an outsourced HR service-providing staff will ensure reduced operational costs. Which are required for an in-house space and staff. And increased efficiency by delegating the employer’s daily operations and managing them.

4. Effective Management of Employee Onboarding Tasks

An HR outsourcing firm lets you access tools required to formulate consistent policies for the present and future employees. For example, HR cloud technology provides paperless employee onboarding and an organized process of keeping files.

5. Access to Wide-ranging Company Benefits

A company working at a large scale has access to a larger pool of employee benefits. And small-scale businesses might not offer those benefits to their employees. So, having an HR outsourcing services India providing company will let you access that large pool of employee benefits to attract prospective employees. 

6. Balanced Opinion

An outsourced HR provider is not emotionally connected with the firm and can make tough but necessary decisions with sound judgment without getting clouded with emotional sentiments. You will be getting professional advice that is best for your business’ interest to maintain the organization’s successful run in the future and its reputation.

7. Reduced Workers’ Compensation Claims

Having an outsourced HR team of professionals will also ensure reduced workers’ compensation claims whenever there is any mistake or accident (construction accidents, etc.) at the workplace with safety consultation services.

8. Consistency 

Suppose your HR head is exiting your organization. It will cause a stir in the HR department and raise the demand for recruitment and training of new HR compliance services. This will cause a hindrance in the HR processes; however, with outsourcing HR services. You will be assured of the consistency of these HR services even if there is a person on leave or has exited the firm. The HR provider will ensure smooth functioning under all circumstances.

What are HR outsourcing services?

Ever wondered how to save the time of your valuable brand by outsourcing? Well, the Human resource department is an integral part of any organization. And due to its demanding responsibilities, many brands opt to hire HR outsourcing companies in India.

This helps an organization save time and focus on its zones of strength! HR services can be most helpful for startups beginning to form a core team and invest mindfully. You may consult Concators HR operations to get a leading service provider on your end! Our trustworthy services and professional work environment has transformed many hefty HR operations into easy ones.

Any excelling startup business consultant in India would advise outsourcing HR from any other company to handle payrolls, staff training, employee benefits, and other such functions. However, rather than investing time and effort in these HR compliance services, brands tend to hire a third party that can easily manage this area of their firm.

A major pro of this set of business expansion consultant services is that it dramatically cuts down the expenses of a company. Rather than hiring an entire department and having to pay them consistently, it has become much easier to get an HR outsourcing party that can reduce the hassle for the brand.

In recent years it has become quite evident that the companies are more inclined towards working on their strengths. Therefore, HR outsourcing allows them to work on their specialization and deliver the best products to their customers.

The current Scenario has witnessed that most businesses have started to utilize offline and online platforms to establish their market. Thus, the competition grows with each passing day, and the brands focus on both aspects of their business. Especially if you own a startup or a small enterprise, having a separate department to manage the HR compliance services can be pretty hectic and time-consuming. Plus, it may cost you a lot of money to keep it running!

All in all, it can be a win-win situation to outsource HR services because it will cut down the expenses of your company and reduce the burden of having a different department.

Three Major Types of HR Outsourcing.

1. Application Service Provider ( ASP ) :

To perfectly manage the HR operations, many companies provide ASP. Under this outsourcing method, the brand is given customized hardware and software inputs to install into their systems. These are professionally designed applications like Oracle HRMS & PeopleSoft HRMS that help in operations like data handling, modulation, and enhancement. Some renowned companies that provide ASP are PeopleSoft and Oracle.

2. Business Process Outsourcing ( BPO )

Many brands tend to hire BPO services to have a dedicated department that can process customers’ queries. The client comes in contact with the support centers, reducing a significant workload! Generally, BPO is outsourced by brands that have an international client base. To converse with them in their preferred language and time, BPO serves as a great relief.

3. Total HR Outsourcing.

Total HR outsourcing is hired from third parties to evaporate the department entirely. The provider company has some professional HR officials and strategists. This includes ASP & BPO, so there is no HR department in the brand. The customization of hardware and software and the support centers are managed under Total HR outsourcing.

The third parties tend to introduce new features for their employees now and then. For example, the ASP applications are being updated with further modulations to serve the clients better. Because the competition in outsourcing has risen immensely and it is getting harder to retain employees in the longer run. With that said, HR service types can vary mildly with many more additions to save time and effort.

Concators, among the top best hr outsourcing companies in India, have a dedicated team of HR strategists to make a structured layout for your operations. You can drop a message at +91 9555626260and one of our officials will soon get you on the line!

What Is HR Outsourcing Services?

HR Outsourcing Services

HR outsourcing refers to an agreement between an employer and an external party provider. In such a relationship, the employer transfers the management and responsibility for certain HR functions to the external provider. HR outsourcing companies/firms like Conc@t are offering comprehensive services of HR.

There are various types of secretarial services available to employers in the market. The options can be specific such as outsourcing one particular aspect of one HR function like applicant tracking for affirmative action purposes, or can be broad as outsourcing the complete human resource department.

There are various terms and types of arrangements prevalent in this process of HR outsourcing which is outlined below:

HR Shared Services By HR Outsourcing Companies/Firms

HR shared services refer to a consolidation of business functions within an enterprise to a highly skilled internal department or group. Under the shared-services model, the administrative functions can be handled in-house or outsourced to human resource outsourcing firms.

When the services offered by the shared services group are combined into a major operation, they are often known as shared-services centres. Broadly defined, the shared services model is marked by the consolidation of administration or support functions for various departments. The HR outsourcing companies/firms are responsible for these shared services.

What Services are Included Under Shared Services?

1. Payroll

2. Accounts payable and receivable

3. Procurement

4. Travel expenses

5. Pension administration

6. Health benefits enrolment

7. virtual CIO services

Technological advances and increasingly sophisticated use of Internet communications worldwide have played a vital role in developing and spreading shared-services arrangements in recent years.

Recruitment-Process Outsourcing

Employers take full advantage of flexible options to turn a fixed expense into a more manageable variable expense. This flexibility allows the organization to adapt to the highs and lows of a fluctuating marketplace.

HR professionals must know about the vendor’s performance commitments and have specific and clear service levels and particular enforcement methods.

Because service levels need to develop and improve over the life of the contract, HR managers must document the existing services when their contract becomes effective to ensure that the vendor has accountability. HR outsourcing companies/firms manage all these recruitment processes.

Benefits of Connecting With a Human Resource Outsourcing Firm Through CONC@T

1 – Administration, Including the Legalities of Employment

Administrative responsibilities and non-key function activities can tax any company, but mainly managing human resources can be a tedious and heavy task for small businesses.

When you operate a small company with limited resources and time, the last thing on your list would be diverting your attention from the core business activities, which is your bread and butter.

Outsourcing human resource activities can bring down your administrative workload and free up your time so that you can pay more focus on your crucial function business activities.

The manager responsible for advertising and PR services & staff needs to know what legal obligations must be fulfilled. It should be considered even before offering a job.

Once the job is offered, the person would require knowledge on administering a payroll process of auto-enrolment of pensions.

HR and payroll outsourcing are standard in the workplace due to the complexities of the task at hand.

Our HR system assures small business support package provides you with the knowledge you are compliant with employment law. This includes providing documents, templates, and forms, along with direct guidance from Concators!

2 – Overall Efficiency

The bucket of tasks that consume your time and reduce your efficiency can be offloaded shockingly. For example, an HR outsourcing firm can manage a whole range of human resources activities and functions that a small business might otherwise outsource to multiple employees- these functions include payroll processing, benefit plan management, training, administration to recruiting, and more.

When you take on board one provider to take responsibility for a range of HR functions, you will reduce time spent on administration and spend less time managing vendor relationships. First, however, it is crucial to find human resources outsourcing companies that will work with you to provide simple to use and employee-friendly services. Furthermore, since efficiently managing human resources is essential for your company’s success, it is vital to find a suitable service provider who can offer the right mix of services.

Whether you want a bundled package or you prefer to pick and choose the services you need, we will review the options available to you and are here to guide you through the process. The marketplace is a crowded environment with many companies you can choose from. Concators- Management/Business Consulting Firms have researched and connected with some of the best HR service providers for small-to-medium-sized customers.

3 – The Recruitment of New Staff

Outsourcing HR services include ensuring that the people hired are the most appropriate people for a particular role. They ensure that the staff has the necessary skills, knowledge, and behaviour. This is a vital element in running a successful business. It should be kept in mind that the level of skills and qualifications required for a role is positively related to the time and cost the process requires. This type of HR service for small companies will be beneficial when facing the hiring process.

4 – Training

Recruiting staff needs a significant investment of time and money. Once employees join the team, they need to use their talent to the optimal level, grow and develop until they feel ready and best equipped and qualified to perform their duties. Training is often considered the “oft option” “in terms of budget, and external training is often preferred. But it is expensive and is not 100% successful in meeting the demands of an individual business.

5 – Staff Retention

By outsourcing your HR services and getting this HR advice for small businesses, you can ensure that these schemes are well taken care of.

6 – Dealing With Long-term Sickness

One hindrance for a small business is when a staff member is absent for a significant period due to illness. How does the law guide? Is the illness physical, mental or financial? What steps should the business take to guard its interests but be just and fair to the employee, both legally and morally? Again, outsourcing your HR needs to CONC@T will ensure that you will save your time from such concerns.

7 – Consolidated HR Tasks and Software

When companies consolidate various entities under one company umbrella, redundancy is visible. In a shared services model, most companies will make specific changes to overcome this problem. This will create higher levels of efficiency and cut down on cost.

8 – Strategy-Driven Approach

An HR shared services model allows businesses to pay less focus on non-key areas such as human resource management, talent acquisition, and retention as they are outsourced. All such processes enable the company to build a better business structure and increase positive business outcomes, essential for its overall growth strategy.

9 – Consistency

Consistency is a positive factor related to the growth of the business as it allows for processes to be undertaken in the same way each time. This is crucial, especially when taking into the importance of compliance.

10 – Positive Employee Experience

HR shared service strategy enables companies to avail faster service. In addition, this type of model leads to employees having positive interactions with HR. Promoting positive interactions between employees and HR creates a better employee experience.

11 – Policy Formulation

A policy refers to a guide for repetitive action in crucial business areas. It is a statement or a strategy of commonly accepted understanding for decision-making criteria. Every company needs policies to ensure consistency in action and equity in its relationship with employees. Organizations providing HR shared services formulate policies for their clients to efficiently and effectively achieve organizational goals.

12 – Standard Operating Process

An SOP is a process specific to operations that describes the activities necessary for completing tasks by industry regulations, provincial laws, or even just how a company wishes to set up standards for running the business. Under the HR shared service approach, the company gets relaxation from the time and effort required to set up SOPs and enjoy the final fruit. This way, the management team can pay more attention to the company’s critical areas.

13 – Payroll Administration

Payroll administration refers to keeping records of the working hours of the company employees. It involves keeping an elaborated record of employees’ cash flow. In big companies, the process becomes more cumbersome and hectic. By using the Virtual HR services strategy and Human resource policies, companies can save on the time and effort required for such a tedious task and instead devote this saved time and effort to critical functional areas.

14 – Statutory Compliance

Statutory compliance in HR refers to the legal framework an organization must operate while dealing with its employees. A lot of the company’s effort and money goes into ensuring compliance with these laws, which could deal with a range of issues from the payment of minimum wages to maternity benefits or professional taxes. HRSS model drives efficiency and reduces cost in the statutory reporting process through centralization and standardization, especially by overcoming common challenges faced by all companies in the same industry.

15 – Employee Engagement and Evaluation

Employee engagement refers to a workplace approach that results in the right conditions for all company members.

An employee evaluation is the assessment and review of an employee’s job performance.

Such tasks require intense time, effort, and cost, which prevents a company from paying more attention to the key areas. The HR shared services strategy eliminates such hindrances for smooth and efficient functioning.

16 – Succession Planning and Exit Management

Succession planning is a normal process that identifies essential competencies. It then works to assess, develop, and retain a talent pool of employees to ensure a continuity of leadership. So it may be for all critical positions.

Succession planning refers to a specific strategy.

It is a plan that managers can follow. However, they can also implement and customize to meet the needs of their organization, division, or department.

Exit Management a.k.a employee offboarding, refers to managing employees’ full and final settlement.

Even when they exit from an organization when an employee is in the exit phase from a company, the required paperwork and formalities associated with employee exit need to go through a systematic process.

There are various exit formalities, such as exit interviews.

Others like clearance from various departments, the replacement of the departing employee, and the final settlement of employee dues.

The HR department has a lot on the plate during employee offboarding. By opting for an internal audit & risk advisory services model. A company ensures smooth functioning and efficient management of the human resource in the transition phase. You can consider HR outsourcing companies/firms like us for these services.

CONC@T as an Enabler for HR Outsourcing Companies for Micro Business

  1. Outsourcing HR requirements will be a more cost-effective and flexible option for a small business.
  2. Conc@t will give their input for more advanced HR requirements, ensuring the business gets the highest standard of service.
  3. It takes the pressure off the business owner and senior managers. This allows them to focus their attention and resources on running the business. But always be in touch with the HR model.
  4. Conc@t works flexibly and can tailor our offer to suit the business and budgetary needs. Get your suitable HR solution with our HR Develop Small Business Support Package. HR outsourcing companies/firms are versatile in their services.

Human Resources Consulting Services For Small Business

There is enormous value in having HR management consisting of experts ahead of the trends. Conc@t aims to provide the best possible service. After all, we aim to retain the business as a client. HR outsourcing companies/firms always make crystal clear relations with the clients.

Human resources consulting services for small businesses are beneficial for micro-business owners.

A small business must always move fast. It must stay a step ahead in the market and innovate while being on a tight budget.

Outsourcing human resources to a small business can ensure that the people factor is inefficient. This will remove hindrances from the HR functions and increase efficiency for the business.

CONC@T acts as an HR outsourcing company for small businesses. We offer various HR services for small businesses, including payroll, benefits, recruiting, taxes and training. More uniquely, CONC@T offers a Virtual Chief Human Resource Officer and an onsite assistance program that puts HR professionals in the office when customers need more help. Unfortunately, most HR outsourcing companies only offer employee handbooks, schedules, brochures, and guidelines.

CONC@T will create a robust set of guidelines customized to meet the needs of each client.

Our website also offers significant educational resources on a wide range of HR topics.

We will work with customers to develop a strategy and strengthen areas with weaknesses. We offer services in all areas of HR administration and human resources consulting.

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HR Outsourcing Services HR outsourcing refers to an agreement between an employer and an external party provider. In such a relationship, the employer transfers the management and responsibility for certain HR functions to the external provider. HR outsourcing companies/firms like Conc@t are offering comprehensive services of HR. There are various types of secretarial services available to … Continue reading What Is HR Outsourcing Services?