How does HR Outsourcing work?

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:

  1. Payroll administration: Produce checks, handle taxes, and deal with sick time and vacation time.
  2. Employee benefits: Health, Medical, cafeteria plans, etc.
  3. HR management: Recruiting, hiring, and firing. Also background interviews, exit interviews, and wage reviews.
  4. Risk management: Workers' compensation, dispute resolution, safety inspection, office policies and handbooks.
  5. Employee data collection and management: New hires, relocations, and promotions and demotions
  6. Contact center functions: End-user support, remote desktop management and repair, training and education
  7. 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

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 responsibilitiesHR management services include:

  1. Online HR software solutions
  2.  Employee self service
  3.  Screening and assessing of employees
  4. Employee performance reviews
  5. Benefit administration for employees
  6. Health and safety programs for employees
  7. Maintaining files of personnel
  8. Developing and managing HR forms
  9. Employee handbooks, workplace policies and procedures
  10. Unemployment claims management services
  11. Employee orientations
  12. Termination assistance 
  13. 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.


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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 problems.
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 include:


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 business.



Increasing workforce productivity

Your employees and managers will appreciate having anytime/anywhere access and self-service HR support. Our HR support services can enable you to communicate new programs, benefits, and policies much more efficiently. Plus, people can resolve a multitude of HR-related issues on their own with our help, freeing you up to concentrate on meeting your business goals. There is no doubt that by transforming the delivery of your HR services employee satisfaction and internal communication will be enhanced. This will enable you to get a greater return from your biggest investment - your staff. Providing better service to employees doesn't have to mean costs soaring out of control. By leveraging our services and technology, your organisation can take advantage of new and innovative ways to support your employees while reducing administrative effort and controlling costs.

Reducing inefficiency in your business

Improving HR services will lead to a more efficient, more motivated workforce and there is no doubt that this will lead to a rise in productivity. As part of our service we can ensure that the common areas of workforce inefficiency are tackled by proactively dealing with thorny issues such as unauthorised absence from the workplace and reducing staff turnover

Helping you cut costs

Outsourcing will save you money. Where appropriate, we can reduce business headcount by moving internal HR headcount costs outside the business. Ensuring you are fully compliant with the legislation and ensuring you have a robust set of employment policies and contracts will minimise any opportunity costs incurred as a result of not complying with the legislation. We also maintain that we can deliver a better service than you could afford to provide internally.



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