The Human Resource Department, widely known as the HR department is that sector of an organization responsible for finding, filtering out, recruiting and on-field/off-field training of the job applicants. Not only this, the HR department is responsible for the management of employee-benefit programs. It is a crucial part of any business sector regardless of what size the organization is. An employee tracking app reduces the amount of manual errors over time sheets which can become mind-numbing for any HR manager.
As the companies reorganize to gain a competitive edge over their competitors, human resource plays a vital role in maximizing the productivity and dealing with rapidly changing environments for greater demand of quality. Well, not to forget, HR department is also responsible for redundancy and communicating with employees for the adherence of rules and regulations.
An efficient human resource department can provide your organization with the ability to meet business needs by maintaining a healthy employee/employer relationship by giving it a structure.
Outsourcing the Human Resource Functions
Organizations today have shifted from the traditional way of recruitment and hence the Human Resource department serves as the backbone and support system for both employees and employers. The companies outsource all these functions and duties of an HR department to an external HR services provider. The services that any common HR department performs can be:
- Payroll administration, including making checks, taking care of expenses, and managing leaves of employees.
- Employee advantages, including wellbeing, therapeutic and disaster protection, and cafeteria plans.
- HR administration, including enlisting, procuring and terminating. This additionally incorporates foundation interviews, post-employment surveys and wage audits.
- Compliance administration, employee’s pay slip calculation, resolutions of debate, office arrangements and creation of handbooks.
There are many circumstances in which outsourcing HR services can deliver tangible benefits to the company by freeing in-house HR personnel to dedicate more time to a strategic role supporting organizational performance.
There are a variety of reasons in which outsourcing the HR services can be beneficial to an organization. Some other advantages of HR outsourcing are as follows:
- Cost reduction
- Access to Human Resource expertise not available internally
- Increase in efficiency of the overall organization
- Improved HR IT systems
- Speedy responses and increase in flexibility
- Risk reduction
- To free the resources of an HR dept. to operate more strategically.
Thanks to the rapid progress in the technology world, many HR outsourcing agencies or service providers have their own HRM systems and mobile apps or websites like the employee tracking app. These types of systems help the employer to track and perform variety of things like employees marking their attendance using their facial image, Expense report tracking & reimbursements, pay slips generation etc.
Apart from these benefits there are many other of outsourcing the HR functions too, but as almost everything has some benefits and pitfalls, the untraditional way of HR outsourcing has some possible pitfalls as well, which are as follows:
- The HR outsource service provider will just need to tackle the issue (at a cost) and the provider’s answer won’t be most appropriate from your association’s point of view
- Loss of confidential information and procedures which rather live with the outsource supplier
- It can prove to be a bit costly at times, depending on the services the provider gives as well as in accordance to the situations a s well
- Standardization of procedures in accordance with outsource supplier and not according to the organization’s culture
- Increasingly, HR outsourcing plans are regularly for long-term (five to 10-year contracts are not surprising). A comprehension of the association’s present and future business technique and potential evolving business (and thus the risk) profile is critical before going into any authoritative agreement. This abstains from being bind to extremely unfavorable plans.
One should keep in mind that the operations of any HR outsourcing should be governed by an actual agreement. This will make things clear on both parties’ end and to avoid any mishap in the contract period. Any hiring company would like to associate with HR consulting firms who have a renowned place in the market and are willing to walk the extra mile to cater to the diverse and ever-changing workplace demands.