How You Can Benefit From HR Outsourcing
From recruiting, to onboarding and even compensation, the HR department is responsible for every facet of employee management. The role of HR is increasingly comprehensive and complex, especially with changes in the workforce landscape as a result of digital transformation. Sometimes, companies find themselves not having the necessary resources to set up efficient in-house HR teams, so why not consider HR outsourcing?
What is HR Outsourcing?
HR Outsourcing is the process of sub-contracting human resources and non-core functions such as payroll services, benefits administrations, and talent acquisition to a third-party provider like TG. With more than 30 years of experience in the field of HR, we have seen how HR outsourcing has evolved from traditional labour cost savings to contributing to long-term business goals.
Why HR Outsourcing?
Much of the HR professionals’ time today is taken up by time-consuming tasks such as paperwork and HR administration. Many of our clients lament that spending too much time on manual processes such as payroll and sourcing for candidates is not only labour-intensive, but also cost-intensive. By outsourcing these non-core processes to a HR service provider, Personnel Today opines that companies will be able to devote more time to strategic roles that support organisational performance.
SMEs also outsource their HR function because their internal HR team is not well-equipped with the necessary expertise to handle complex HR issues. According to SHRM, HR outsourcing allows them to tap on the experience and content knowledge of HR experts for issues related to regulatory compliance and transactional HR functions. If you’re experiencing the same challenge, feel free to speak to our expert consultants who are committed to designing a HR solution that is tailored to the needs of your business.
What Are the Benefits of HR Outsourcing?
1. Increased Flexibility & Efficiency
According to McKinsey & Company, the accelerating pace of technological change is widening skill gaps, highlighting the dire need to address these trends through automation and digitalisation. Not only does HR outsourcing provide increased flexibility and speed of response, providers also utilise state-of-the-art RPA technology to ensure business continuity. As such, better management information and data reports can be generated with ease. With greater efficiency, more resources and time are freed up for companies to focus on strategic efforts of the business.
2. Qualitative Business Outcomes Pricing
Outcome-based pricing is gaining traction in HR outsourcing as it measures the quality of human capital instead of quantity. In outcome-based pricing, pricing is based on the actual business outcomes delivered where the onus to deliver a quality workforce rests on the service provider. Not only do service providers provide the necessary talent pool, they also have to make sure that their talents are the right match for the job and well-trained in the company’s processes. This re-thinks the cost mindset and results in higher revenue productivity as business goals are met by the quality workforce outsourced.
3. Multi-country Compliance
By outsourcing the HR function, companies are able to tap on the expertise of in-country teams to navigate the complexities of local labour law regulations and compliance risks. This ensures a peace of mind when it comes to a multi-country workforce. The continuous monitoring of critical legal and regulatory information in real-time allows for greater agility and competitiveness in a fast-changing business environment where international workforces are the norm.
Who Needs HR Outsourcing?
HR outsourcing is ideal for HR departments that are seeking ways to reduce time and resources spent on non-strategic transactions and administrative tasks. This is achieved through a stronger focus and priority on more strategic, profit-generating business activities.
Besides traditional labour cost savings, HR outsourcing is also good for companies who are looking for assistance in navigating the complexities of labour law compliance, especially those who require both local and international compliance expertise.
Your core business matters, leave your non-core HR functions to us today: www.tg-hr.com