HR Outsourcing
With increasing complexities in HR
and the department’s service delivery mechanism changes, companies have
broadened the scope of HR services that are
being outsourced. Traditional, payroll and benefits
administration back office transactions have given way to large HRO and BPO (Business
Process Outsourcing) wherein the complete HR departments are moved to the third
party outsource provider.
HR leaders and senior management
have adopted the model of outsourcing of HR. All types and sizes of
organizations have recognized the appeal of HRO. Previously considered as a
business functioning alternative by Fortune 100 global firms, HRO outsourcing
is now readily utilized by SME’s also.
Evidently, HR Outsourcing has
gained its share of popularity with the company size not being a limitation any
more for adopting or not adopting this service. Today many companies are addressing the requirements
of small to medium employees with headcount ranging between 1000-10,000
employees because the advantages of outsourcing are becoming more and clearer
now days.
·
Improved strategic
management of employees
·
Lesser
administrative hassles
·
Proactive
problem resolution of employee issues and escalations
Experts opine, that it is best for
companies to outsource their non-core functions and shift all focus on the more
strategic aspects of HR such as competency mapping and management, traininginitiatives and organizational development, performance management and workforcemanagement.
Through the outsourcing of non-value
added activities and inking business alliances with the respective third party outsource
provider, organizations can solely devote their efforts in accomplishing
the strategic initiatives that support the objectives, vision and mission of
the company. This shift primarily contributes to the improved positioning of HumanResources function as a Strategic Business Partner in the company, which iscapable of providing value-added information.
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