Benefit from HR Outside
The employees play a big part in any business. Without them, there’s no point in having a business at all. Therefore, support for their working welfare is a must in every company.
The Human Resource Management is a vital part of any organization. This division is made solely for the purpose of looking after the welfare of the employees—before they start on the job, while they’re on the job, and even after they have rendered resignation from the job.
It is through the human resource department that the company gets the right people for its operations and business functions. This department handles the crucial task of being responsible for the professional welfare of the company’s workforce. The HR (human resource) department needs persons who can read people, are approachable, and can take care of professional (and other times personal) concerns.
In a corporate organization, specific HR functions are compensation and benefits, background checks, recruitment, employees’ assistance programs, and training and development programs, to name a few. With the majority of a company’s efforts directed toward operations and front-office systems, the company may opt to forgo the implementation of some HR functions.
A company, however, should never sacrifice human resource management for the pursuit of generating higher revenues. Instead of disregarding HR management, a company can resort to back office outsourcing—where back office services make it possible to carry out HR functions with much efficiency and at a lesser cost. HRO (human resource outsourcing) is one of the specific types of back office services.
Human resource outsourcing or HRO is a back office outsourcing job that has been around in all industries for many years now, offering HR services that can’t be accomplished by the parent company.
According to an August 2008 study conducted by the Society for Human Resource Management (SHRM), the most commonly outsourced HR functions are background checks, employee assistance programs, and flexible spending accounts that allow employees to use pre-tax dollars to cover medical expenses. In the same study, 33 percent of HR professionals who participated believe that they will increase their use of HRO within the next five years.
In large companies, they tend to outsource minor HR functions for them to focus their energy more on activities that can improve the dynamism of their workforce. For smaller companies, they tend to outsource the entire HR department, enabling them to focus more on the operations and administrative functions.
HRO holds many advantages for companies, especially for those that are still starting up. We’ll enumerate here what are these returns that a company gets when outsourcing HR functions:
· HRO saves money. Availing HRO services is basically less expensive than hiring employees to do HR functions. Your company can save on employee salaries and benefits, helping you cut back on labor costs. If your company has short-term HR-related projects, it is cost-effective to resort to an HRO service provider.
· HRO saves time. It allows the company to save time from having to hire and train employees to do the HR job. HR outsourcing companies have people who can do the job immediately. They already have their methods in how to handle HR tasks.
· HRO reduces risks. When a company has its own Human Resource department, it also assumes the risks and liabilities associated with the functions, such as health and retirement benefits and payroll. Handing the job over to the experts also makes them liable for the responsibilities of handling those tasks. They have sufficient knowledge of these functions; hence, they are likewise capable in handling the associated liabilities and risks.
· HRO provides efficiency. Hiring an outsourcing provider to do the HR functions entitles a company to an efficient HR management from the experts. This is especially helpful for starting companies, by benefitting from the level of expertise that HRO companies provide. From benefits to laws pertaining to employee welfare, all can be managed expertly by HRO service providers.
· HRO gives employee satisfaction. Because the HR functions are now given more focus by outsourcing it to HR experts, employees can now benefit from each HR function and feel satisfied that they are well taken care of. Each specific HR function, like health benefits and allowances, is thoroughly tackled, not letting any small detail about an employee’s status be left unaided.
· HRO provides benefit selection for the company. HRO service providers can provide a company a selection of employee benefits. This can be negotiable by companies, especially for small ones, since HRO companies can easily procure better rates because of their industry contacts and their ability to combine the needs of several employers to obtain discounts on group health plan premiums.
The human resource is what makes a company running and earning more revenue. Taking care of the employees is essential to meet the constant changes and the demands of the business.
Back office services like Human Resource Management is vital for a company’s growth and reputation. How a company handles this department determines the success (or failure) of the business.
Never take for granted the professional well-being of your employees, take the necessary measures to ensure their welfare. To do so with cost-effectiveness, you can take advantage of human resource outsourcing services to have experts take care of your people.
The Human Resource Management is a vital part of any organization. This division is made solely for the purpose of looking after the welfare of the employees—before they start on the job, while they’re on the job, and even after they have rendered resignation from the job.
It is through the human resource department that the company gets the right people for its operations and business functions. This department handles the crucial task of being responsible for the professional welfare of the company’s workforce. The HR (human resource) department needs persons who can read people, are approachable, and can take care of professional (and other times personal) concerns.
In a corporate organization, specific HR functions are compensation and benefits, background checks, recruitment, employees’ assistance programs, and training and development programs, to name a few. With the majority of a company’s efforts directed toward operations and front-office systems, the company may opt to forgo the implementation of some HR functions.
A company, however, should never sacrifice human resource management for the pursuit of generating higher revenues. Instead of disregarding HR management, a company can resort to back office outsourcing—where back office services make it possible to carry out HR functions with much efficiency and at a lesser cost. HRO (human resource outsourcing) is one of the specific types of back office services.
Human resource outsourcing or HRO is a back office outsourcing job that has been around in all industries for many years now, offering HR services that can’t be accomplished by the parent company.
According to an August 2008 study conducted by the Society for Human Resource Management (SHRM), the most commonly outsourced HR functions are background checks, employee assistance programs, and flexible spending accounts that allow employees to use pre-tax dollars to cover medical expenses. In the same study, 33 percent of HR professionals who participated believe that they will increase their use of HRO within the next five years.
In large companies, they tend to outsource minor HR functions for them to focus their energy more on activities that can improve the dynamism of their workforce. For smaller companies, they tend to outsource the entire HR department, enabling them to focus more on the operations and administrative functions.
HRO holds many advantages for companies, especially for those that are still starting up. We’ll enumerate here what are these returns that a company gets when outsourcing HR functions:
· HRO saves money. Availing HRO services is basically less expensive than hiring employees to do HR functions. Your company can save on employee salaries and benefits, helping you cut back on labor costs. If your company has short-term HR-related projects, it is cost-effective to resort to an HRO service provider.
· HRO saves time. It allows the company to save time from having to hire and train employees to do the HR job. HR outsourcing companies have people who can do the job immediately. They already have their methods in how to handle HR tasks.
· HRO reduces risks. When a company has its own Human Resource department, it also assumes the risks and liabilities associated with the functions, such as health and retirement benefits and payroll. Handing the job over to the experts also makes them liable for the responsibilities of handling those tasks. They have sufficient knowledge of these functions; hence, they are likewise capable in handling the associated liabilities and risks.
· HRO provides efficiency. Hiring an outsourcing provider to do the HR functions entitles a company to an efficient HR management from the experts. This is especially helpful for starting companies, by benefitting from the level of expertise that HRO companies provide. From benefits to laws pertaining to employee welfare, all can be managed expertly by HRO service providers.
· HRO gives employee satisfaction. Because the HR functions are now given more focus by outsourcing it to HR experts, employees can now benefit from each HR function and feel satisfied that they are well taken care of. Each specific HR function, like health benefits and allowances, is thoroughly tackled, not letting any small detail about an employee’s status be left unaided.
· HRO provides benefit selection for the company. HRO service providers can provide a company a selection of employee benefits. This can be negotiable by companies, especially for small ones, since HRO companies can easily procure better rates because of their industry contacts and their ability to combine the needs of several employers to obtain discounts on group health plan premiums.
The human resource is what makes a company running and earning more revenue. Taking care of the employees is essential to meet the constant changes and the demands of the business.
Back office services like Human Resource Management is vital for a company’s growth and reputation. How a company handles this department determines the success (or failure) of the business.
Never take for granted the professional well-being of your employees, take the necessary measures to ensure their welfare. To do so with cost-effectiveness, you can take advantage of human resource outsourcing services to have experts take care of your people.
About the Author
Miche is a self-employed blogger and copywriter from Philippines who has a love on writing and always happy to share his passion on blogging.