The human resource (HR) department usually faces a multitude of different tasks each workweek, such as recruiting, creating plans for employee development, and training workers, among others. Although it seems that most of these focus on core business functions, the reality is that HR officers spend 73% of their time on administrative activities, such as payroll and clerical work, diverting their time and attention on more pressing matters to the workforce.
This is where the role of HR outsourcing companies comes in.
How Does HR Outsourcing Work?
HR outsourcing is the process by which one business organization enters into a contractual agreement with an external third party provider, with the latter undertaking to perform the management and responsibility of certain HR functions. This allows businesses to redirect their focus on more important activities, while ensuring that their bottomline is well taken care of.
What Can HR Outsourcing Companies Do for You?
- Payroll
Payroll typically involves a ton of processes — from counting timecards, checking attendance, and calculating deductions to generating pay slips and issuing paychecks. Aside from that, there are state and local regulations regarding wages, along with mandatory tax withholdings, that companies must continue to comply with.
Through outsource payroll, however, third party companies can take on all these tasks, allowing businesses to save time and resources which can be spent on core business activities, while streamlining their compliance to regulations.
- Training
Although there are training programs that need to remain in-house in order to protect intellectual properties and keep certain information confidential, general training programs may nevertheless be outsourced. These may include those for basic workplace ethics, diversity training, gender sensitivity, basic communication skills, and the use of certain digital tools.
- Initial Hiring Process
Although the crucial stages in the hiring process, such as interview and screening, should ideally remain with the company itself, HR outsourcing companies can nevertheless give assistance on the initial stages. These may include creating publication materials, advertising vacant positions, and receiving applications from prospective candidates.
Benefits of Outsourcing HR Functions
- Free-Up Time
Outsourcing can help HR managers free-up time for more important tasks. When companies have a dedicated and efficient HR team, this will allow them to focus on core activities, like employee development. However, if a company’s HR team is struggling and not that efficient due to the bulk of tasks that they have, outsourcing can help them free up from activities that cause their schedules to be hectic, allowing them to focus on their actual job responsibilities.
- Access to Experts
Outsourcing HR means leaving typically burdensome functions in the hands of specialized HR professionals. This will provide more assistance to companies, allowing them to optimize their services to help foster job satisfaction among employees.
Find a Reliable Partner
One of the first steps that a company must undertake in planning to outsource its HR functions is to look for a reliable HR outsourcing company — one that does not only secure their important data well, but also ensure that all their legal compliances are met.
Get started by reaching out to one of the most reliable outsource companies, BSH Soft, for outsourced payroll in Dubai and in other parts of the Middle East.
