As everyone knows, the most important part of any organisation is its people. Profits can rise or fall, but if a company’s employees are unhappy or ill-equipped to do their jobs, then it can be a recipe for disaster.
That’s why today, HR services are finding themselves in an increased position of responsibility, with the power to increase a company's productivity and profitability. However, effective HR management can also be a considerable task, and one which uses significant resources. So what’s the best way to find the right balance?
HR outsourcing, (HRO) has seen tremendous growth in recent years, and could be one answer. With the ability to outsource everything from payroll processing, to, in some cases, a complete HR service, it’s clear that many are starting to see the benefits.
Although the concept of HRO has been around for quite some time, it’s true that its popularity has been a comparatively recent phenomenon.
Indeed, it seems that one of the principle reasons that HRO has matured, is because of the increasing levels of trust companies have placed in the outsourcing procedures in recent years.
There’s now an increased understanding of the ways in which outsourcing the “people needs” within an organisation, with the correct relationship management procedures can help organisations to gain a competitive advantage.
More organisations are also waking up to the fact that HRO can provide access to experts and professionals who are able to weave their way through the minefield of HR customs and positively deliver results.
As HRO, and indeed outsourcing, has become more established, organisations are also starting to realise that HRO needn’t focus only on taxes, payroll, and benefits. Businesses are now even beginning to outsource hiring and recruitment services - tasks that can take up a large amount of time and a huge amount of resources.
There are a number of reasons why HRO is becoming more and more prevalent. It’s clear that costs are an important consideration for any company, and HRO can play a positive role in reducing running costs.
The cost benefits can become clear even if a business is outsourcing only a few HR services, while outsourcing the entire range of HR activities can deliver outstanding results. By outsourcing HR services, organisations do not need a dedicated internal HR department, which can save resources and free up staff to work on the core tasks of the business.
In fact, by enabling a streamlined business process for the company, HRO can give companies an increased ability to concentrate on the core tasks and departments, and help them to develop a more focused approach as a result.
So while it’s true that a company’s people are the most important aspect of a business, it’s worth not losing sight of the fact that there are other important considerations to take on board as well. HRO can help provide an efficient service, to professional experts, and produce enviable results.
*The National Outsourcing Association will be holding a Morning Seminar on HR Issues in outsourcing and professional development on 12th October, at Kemp Little, Cheapside House, 138 Cheapside, London. Please contact Natalie Milsom on 0207 292 8689 for more details.