Benefits of HR Outsourcing (HRO)
Benefits of HR Outsourcing (HRO)
In today’s times, there is a higher focus on company culture, work environment, employees’ physical and mental wellbeing, and allied employee benefits. In short, companies have started valuing the happiness quotient of their employees. This change in outlook has cut across industry niches and business scale. Gradually, human resources have become critical for sustainable business growth. Therefore, HR departments have moved beyond plain old payroll processing and performance measurement. They are getting more into team-building programs, creativity boosting office practices, work flexibility policies etc. This change has also permeated to HR outsourcing (HRO) agencies. Businesses everywhere are finding huge benefits in outsourcing their HR functions to human resource specialists. These specialists undertake not only administrative tasks but also employee retention programs, team development initiatives, and goal alignment.
● 4 Reasons You Should Outsource Human Resources
○ Better focus on growth strategizing An outstanding strategy bears no outcome if not implemented properly or not implemented at all. You create excellent employee policies and productivity strategies. But they fail to be actualized properly because much of your and your HR team’s enthusiasm is zapped by menial (yet necessary) employer responsibilities like payroll processing, administration, and compliance with a host of governmental regulations. When you outsource run-of-the-mill tasks to an outside HR agency, you free up a lot of time for yourself and your in-house human resource department. To ideate and execute strategies that will actually boost workplace productivity and in turn, business growth.
● Complementary Support for Employee Compliance Before onboarding employees and assigning them to their tasks, a business needs to make sure that all human resources are in compliance with various governmental authorities. This includes mandatory policies for overtime, salary hikes, and other employee benefits like insurance coverage, workers compensation coverage etc. Furthermore, every employee must have in their records, proper documentation for identity and address proof, and information about payroll tax liabilities. Failure to comply can have monetary and legislative consequences for your company, a headache which you don’t want or need. By outsourcing HR operations of employee compliance, you make sure all your employees are compliant from the get go. Moreover, because the outsourced agency will be a specialist, they will stay current on changing compliance policies. They can ensure your team remains compliant even if policies change.
● Better protocols and HR policies Every department in your business will have its own set of policies and employee protocols. To make sure both you, the managers, and the employees themselves adhere to workplace HR policies, the HR department typically creates guidelines and employee handbooks. As a business owner, spending effort on these tasks may not be the best utilization of your time. By outsourcing these tasks to an external HR agency, you get two major benefits. First, you get the collaterals needed for proper internal functioning handed to you. Secondly, you will get a third-party opinion on things you may have missed simply because of overfamiliarity with your business operations. HR outsourcing gives you a fresh pair of eyes. It can uncover avenues for improving employee happiness quotient and workplace HR policies.
● Lower costs of employee management If properly offloaded, HR outsourcing can save significant costs. You do this by leveraging the lower costing in another region for the same functions which are expensive if you were to hire in-house. But the quality of output will remain consistent. You can pour these saved costs back into your business growth.
● 6 HR functions to outsource You can think of outsourcing distinct human resource functions or build an entire dedicated team from an outsourced agency.
Here, we are breaking down HR functions into 6 avenues you may think to outsource:
- Talent acquisition, often also paired with job advertisement and initial screening
- 2. Payroll processing 3. Employee benefits and welfare
4. Adherence to employment law
5. Employee relations and performance curation 6. Risk, workplace discrimination and bullying prevention / handling
7. Reliable hiring support We are here to shoulder some of the employee responsibilities for you so that you can focus on building your business. With over 15+ years in the Indian market, we understand not only Indian business, but also the trends in employee policies and HR policies.
We know what Indian employees value at their workplace. Remunance will its tailor HR service to your business objectives so that every employee aligns to the bigger picture. If you want to initiate HR outsourcing, let us connect and start right away.
