Since the Internet has enhanced systems to connect people from around the globe,
thus, multiple locations of offices isn't a problem at all because with better
technologies, outsourcing easily targets business environments that have
been facing rapid changes such as economic regression and cutting off employees,
change of routines.
Typical services most Outsourced in HR:
Payroll administration: Produce
checks, handle taxes, and deal with sick time
and vacation time.
Employee benefits: Health,
Medical, cafeteria plans, etc.
HR management: Recruiting,
hiring, and firing. Also background interviews,
exit interviews, and wage reviews.
Risk management: Workers'
compensation, dispute resolution, safety inspection,
office policies and handbooks.
Employee data collection and management: New
hires, relocations, and promotions and demotions
Contact center functions: End-user
support, remote desktop management and repair,
training and education
Information systems processes: Database
management, intranet and Internet, connectivity,
queries and caches, networked printing
Types of HR services that can be
outsourced with PEO’s
A PEO can take
over the HR responsibilities of businesses,
thereby enabling them to focus on their core
tasks. The PEO enters into a co-employment
relationship with the client company enabling
the former to assume employer responsibilities. HR
management services include:
- Online HR software solutions
- Employee self service
- Screening and assessing of employees
- Employee performance reviews
- Benefit administration for employees
- Health and safety programs for employees
- Maintaining files of personnel
- Developing and managing HR forms
- Employee handbooks, workplace policies
- Unemployment claims management services
- Employee orientations
- Termination assistance
- Conflict resolution
Should you consider outsourcing?
Numerous business that have around 1500 employees
choose to outsource their HR since it is a strategic
tool that enables them to focus on the business'
responsibilities and concentrate on fundamental
business activities. Aside from those benefits
or advantages, HR outsourcing greatly provides
you with skilled professionals who focus on the
management of your business' HR, help you manage
and reduce operating costs and greatly improve
employer and employee relations.
If you have fewer than 100 employees, the answer
is yes. At this size, you often don't have the
resources for an in-house HR staff, so outsourcing
is just right for you. You don't have to worry
about managing all the details that are so critical
to HR in your business, and most small-business
owners just don't have the skills and experience
to do so. Remember, HR functions must be handled
correctly as close to 100 percent of the time as
possible; slip-ups can cause your business major
If you're even smaller, online services are the
way to go. These services are tailored to work
with all sizes of businesses, even the smallest.
You don't have to give up legal responsibility
just yet, and you'll be able to easily access your
information online. And since the charge is usually
by user, you won't be overpaying.
If you're uncertain about outsourcing everything
but know you don't have the staff or experience
to keep it in-house, try outsourcing only certain
parts, such as payroll and benefits. You can also
purchase HR software right off the shelf to support
any in-house efforts.
But will Outsourcing HR work for your Business?
If you want to determine whether you should
outsource your HR then draw up a list of
the most difficult people management problems
your company faces. For each problem, write
down the things that would have to be done
to fix them. Then, ask, "Why aren't
these things being done today?" If the
answer is lack of management time, lack of
expertise in the company, lack of investment
or the potential ongoing operational costs,
then outsourcing is definitely a solution.
Some of the issues you face as a business
Rapidly changing employment legislation
With the recent rise in the level of new
employment legislation, keeping up to date
with the changes has become a full-time job,
even for experienced HR professionals. By
outsourcing you are getting access to a pool
of expertise that you couldn't afford to
employ. As your outsourcing partner our role
is to ensure that you are up to date on the
changes that affect your business and that
your organisation is complying with legislation.
Dealing with increasing personnel administration
There is no getting away from the fact that much
of the HR function is transaction based, paper intensive
and time consuming. Your staff's valuable time is
taken up with time and labour intensive functions.
Using our streamlined, automated processes to increase
efficiency and accuracy we can help you manage HR
workflow. We'll ensure your personnel records are
up to date whilst at the same time ensuring you have
the key management information you need to run your