The human resource department is a part of the business that rarely gets the credit that it deserves, and we don’t realize just how important it is until something goes wrong. The people in HR do everything from payroll management, employee training, customer relationship management to even creating fallback plans for the next big move the business will take. The role of the HR department is such that there is no hard and fast rule as to what the people in this department are responsible for. They don’t have a sales target to reach or have an account statement balanced. They are playing the role of the helping hand behind every department and carrying out roles that are their sole responsibility.
For most small to mediums scale operations, the HR department is a one-man mission; oftentimes it is the founder that looks after the responsibilities of human resources. In slightly larger organizations, there is a small team consisting of a couple of managers, maybe a couple of secretaries. However, the leader of the organization still plays a part in it all. In full-sized organizations, the HR department comes into full swing. It is a dedicated unit, often working completely independently of the rest of the organization and playing the role of the think tank. At this stage, there are many inefficiencies that the HR department can succumb to. This is why many companies that are transitioning to a full-sized company status will start considering alternatives to a traditional HR department. They are looking for people who share the same level of commitment and work ethic but can help out in operations without being a physical part of it. If you need some help in HR, here is how you can get it.
Identify Your Need
The outsourced HR solution for your particular business will depend on your unique requirements from the department and how capable you are of delegating responsibilities to people. For instance, if a business hires through their network, they don’t need an HR company that is an expert at recruitment and talent hunts. On the other hand, if you are a business that is struggling with finding the right people for your team, this is going to be the first thing you look out for. For others who use generic recruitment strategies and can do just fine with an average human resource team, giving this function to someone else will not compromise their performance, instead will give the core team more time to focus on things that need their attention.
Some companies might want to reduce their expenses on HR by hiring a third party; in this context, finding a cost-effective solution is important. For some businesses, the HR department has never been properly developed from the ground up. They want to hire an expert in the field so that they have a solid service partner rather than having to create an additional internal process. Hiring a third-party service provider also provides the company with a sense of stability where they know that this core part of the organization is not reliant or dependent on the mother company itself. Some organizations might be making a major change and restructuring their hierarchy or upgrading the infrastructure, and they need a partner who can help them during this transition and show them which direction they should take in regards to human resource management in the future. These are all considerations that will impact the final choice of vendor.
HR services can be categorized as being one of 3 types of solutions: Application Service Provider (ASP), Business Process Outsourcing (BPO), or Total HR Outsourcing.
In this form of HR outsourcing, the business allows the vendor to make decisions on their behalf and be involved in the processes of the business. For instance, if a business needs help in strategizing the marketing campaign, the BPO vendor might be assigned certain roles in this process. According to the team behind hrassured.com.au, businesses should choose HR companies that are specialists in tasks that they need help with. If they are looking for general assistance, they should seek firms that have experience assisting clients from the same or a similar industry. Delegating business processes to a company that knows nothing about the business will only create problems for the client.
These firms specialize in giving their clients both the hardware and the software solutions to assist in HR management. They also assist in the installation, migration, training, and troubleshooting phases of the transition. While this can be an expensive solution, there are many benefits to having a fully digital and completely customized HR management suite. Especially for companies that are running operations in multiple physical locations, have a large number of employees to handle, and are working on multiple projects simultaneously, this helps bring everything together in a cohesive manner. It is a one-time investment that can have exponential returns. The main challenge is being able to develop an accurate solution and implement it properly.
3. Total HR Outsourcing
In this relationship, the HR company that the work is outsourced to is in complete control of all the HR operations of the client company. Within the client company, there may be no HR department at all and only a single person who is playing the role of the HR strategist. This strategist will advise and consult with the HR specialists on behalf of the client, but only has a limited impact on the actual work carried out by the HR specialists. Some of the core functions might still be held by the client company, but everything else is managed by the company that it is outsourced to.
In this way, outsourcing the HR department is not only a lengthy process but can impact the company very differently depending on the approach they take. More importantly, the expenses, the risks, and the kind of work involved in making this change possible will also vary a great deal. The best place to start is with a self-assessment of what is needed, and then looking for solutions that will specifically meet those demands.