HUMAN RESOURCE SERVICES
The core aspect of your business is to provide services, products, and prospects to your customers. Human resources management process plays a significant role in how your employees get the job done, and the challenges faced when employment issues arise.
Our goal is to save your company time and money, but more importantly, our team of certified experts in human resources and employment law ensures that you receive prompt, accurate asistents with critical employment issues. We are committed to helping your organisation succeed, we’ll co-create solutions to deliver the most effective and affordable human resource management programs in support of your organisation’s mission and business plan.
Whether your business is large or small requires skilled manpower to survive and succeed in a fast changing environment.
HR outsourcing is the use of an outside service to handle some or all of your company’s HR tasks. HR outsourcing functions include payroll processing, employee benefits administration and other business needs unrelated to day-to-day company functions.
In human resource outsourcing, you transfer the responsibilities of specific HR tasks to an external service provider. These HR functions or tasks can include any activity that deals with an employee, such as recruitment, managing payroll or even offboarding employees.
Here are four HR activities that are commonly outsourced:
A. Talent Acquisition
One of the primary responsibilities of any HR department is to find and hire new talent. But it’s also one of the most time-consuming tasks.
The hiring process usually involves four steps:
- Posting job descriptions on job boards.
- Screening applications and performing background checks.
- Interviewing shortlisted applicants.
- Introducing the new hires to the company.
As performing all these activities in-house can take the focus away from your core competencies, outsourcing talent acquisition tasks to external service providers makes sense.
B. Performance Management
Employee performance management involves regular analysis of your employees’ efficiency and ensuring that their individual goals align with that of the organization.
It’s an in-depth study of the capabilities, achievements and responsibilities of every employee. It also includes various decision-making tasks like dismissals, appraisals, position changes and bonuses.
As this requires a lot of time-intensive analysis, it’s best to seek the help of external HR professionals for this. However, the business owner or manager needs to take the last call on any decision involving an employee, such as a promotion based on performance.
C. Payroll Management
Creating and managing employee payroll is a crucial activity in any business. However, managing payroll gets more tedious as your workforce grows.
Payroll management involves several steps like:
Determining allowances (like house rent and travel allowances) and salary components (like variable pay and net pay).
Gathering and verifying extra expenses incurred by the employees, along with the deductions from their salaries.
Accounting and processing payouts.
Having an in-house payroll team or using an advanced HR software application designed for payroll processing can be quite costly.
That’s why most business owners prefer outsourcing employee payroll management to an external entity like a PEO( Professional Employer Organization). They’ll have the right HR software and HR compliance system to perform payroll services efficiently.
D. Compensation And Benefits Administration
Compensation is what you pay your employees for their work, while incentives and benefits motivate an employee to work harder. For better employee retention, you need to update both according to the latest industry standards regularly.
However, to do this, you need to conduct tons of research. For example, you need to check up on the latest market standards of workers’ compensation and then measure that against the output of each employee in your organization.
Outsourcing employee benefit and compensation management can be beneficial as:
You don’t need these services throughout the year — so employing someone full-time makes no sense.
It’s time-consuming to manually evaluate every employee and crosscheck with the data of other companies.
You now must have an idea of which HR tasks you should be outsourcing.
1. Cost Savings
Let’s start with some statistics here. The average salary of an HR manager in the US starts around $90,000 plus benefits. You’ll also have to pay for overhead costs and salaries/incentives to other employees in your HR department. However, outsourcing human resource services saves you from all these extra costs involved in hiring, training and maintaining your HR staff. You just have to pay the service provider a fixed cost (based on the payroll of your company) or on a per-employee per-month (PEPM) basis. Additionally, thanks to pre-decided pricing, you can estimate your business expenses better through human resource outsourcing. Outsourcing to developing nations with a lower cost of living, like India and the Philippines, can further reduce the cost of an HR service.
2. Increases Efficiency
Several HR tasks, like establishing employee policies and creating a payroll, require special knowledge. Some functions, like screening and recruiting talents, also require years of experience. When doing these tasks yourself or assign the duties to an inexperienced in-house HR team, you’re prone to making mistakes. And a single mistake might run you into a lawsuit or a wrong hire, which translates to thousands of dollars in penalties or lost revenue. Instead, why not outsource your HR tasks to an experienced service provider? An HR outsourcing firm has highly experienced HR staff to handle these tasks efficiently. They’ll also have advanced HR technology to perform the job. This increases the precision, quality and execution speed of your HR activities.
3. Assures Compliance
Continually updating your employment policies and employee benefits to match the industry standards is both tedious and crucial. You’ve to check compliance with not just federal employment laws but also state and local laws, to avoid fines, penalties and lawsuits. Ensuring that your daily tasks are within your country’s legal scope is complex and requires hours of research. Seeking professional help with HR regulations not only takes the burden off your shoulders but also helps save your business in case of an audit. Moreover, an HR service provider can notify you of deadlines for liabilities(like payroll taxes).
4. Focus On Your Core Competencies
As your business develops, you should focus on evolving your business strategies, increasing your outreach and maximizing your profits. But you’ll find less time to do all these tasks if you have to take care of HR activities, like administrative tasks and employee relations as well. Outsourcing your HR activities helps you focus on your core competencies — on what you do best. This way, by outsourcing your HR functions, you’ll be free to work full-time on growing your business while the outsourcing firm manages your HR tasks.
5. Get Better Hires From A Larger Talent Pool
Human resources outsourcing helps you streamline the recruitment process. HR agencies are usually better connected to professional portals and job search platforms. They’ll also be familiar with the latest market standards regarding compensations, benefits and allowances. So the two advantages of outsourcing recruitment activities to an HR firm are: You get access to a larger and more qualified pool of talents. This means you choose from a larger selection of experienced individuals whose skills align with the job.
You can ensure that the hires aren’t underpaid or overpaid. This not only improves employee retention but also prevents you from paying them more than you should.
Are you still not sure if you should go for HR outsourcing services?
Here are two situations when HR outsourcing can be especially beneficial:
1. When HR Management Feels Costly
Remember, HR outsourcing is ideal for SMBs. So if you run a business with less than 500 employees, you’re better off outsourcing HR functions. However, outsourcing is more like a temporary solution to your HR challenges. Sooner or later, you’ll have to establish an HR department if you want to have an engaged, efficient workforce.
2. When You Don’t Plan On Recruiting Proactively
Recruitment doesn’t have to be a continuous process. Instead of recruiting, you may want to focus your resources on business development and employee training. In such cases, outsourcing specific HR responsibilities like hiring is the better option. With outsourcing, you pay for what you want, when you want, helping you limit your expenses.
What We do:
- Setting up of all company policies and procedures.
- Implementing, coordinating, overviewing and maintaining all HR Generalist functions.
- Application of human resource management principles and processes during management and recruitment of staff for assigned properties
- Display of leadership during training and mentoring of HR assistant and payroll staff
- Recruitment and selection of staff including interviewing, reference checking and appointment process and creating of employment contracts
- Dealing with the unions, wage negotiations, staff issues, coordinating meetings etc.
- Assisting in resolving of labour issues, disciplinary hearings, assisting company in preparing for CCMA hearings and including management of termination of service process. (Representing company at CCMA will be an extra rate per hour)
- Liaison with company legal representatives and providing legal advisory service to internal members of management.
- Facilitating disciplinary processes and procedures and making sure that continuous training is being done to keep managers up to date.
- Facilitating grievances.
- Staff performance appraisals
- Development, implementation and management
The need for HR & payroll management today is greater than ever. Research shows that due to the tremendous need to reskill employees and transform organisations, HR & Payroll solutions solve some of the most pressing dilemmas in business today.
Contact us for a free initial consultation.