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Outsourcing your HR department can be an effective strategy, but only if you know when and what to outsourced. Human resource is considered to be a source of competitive advantage for organizations, especially in the knowledge sector.
There have been continuous debates whether HR departments act as mere administrative departments in organizations and do little in terms of actual value-addition for employees. Entrepreneurs are increasingly opting for outsourced HR services and asking experts to manage their employees, while they concentrate more on their core competencies. The reason behind is lack of time, resources, or expertise
“Orbital Career” offers cost savings, standardization of processes, and efficient service. Typically, HR outsourcing has been associated with recruitment. However, that is not the case anymore. Outsourcing operational, administrative, and strategic functions is also gaining momentum.
Different HR functions that can be outsourced
One can outsource various HR functions depending upon the expertise required. Recruitment is unarguably the most common functions outsourced. However, it is functions like payroll, leave tracking, record keeping, etc. that are routine in nature and can be easily farmed out.
Once you are a big organization, outsourcing recruiting makes a lot of sense. The organization will always have the final say in the selection of the candidate, but the screening of resumes, and initial selections can be completely outsourced. Then there are also entrepreneurs who believe that recruitment should never be outsourced to an external party as they cannot fully understand the culture of your organization and will fully understand your requirements.
This includes maintenance of employee master payrolls, tracking of leaves, any kind of employee redressal and grievances, entry and exit process, paying provident fund and life insurance, and so on. These are people- and effort-intensive activities that can be mastered over a period of time. This is the reason why it makes sense to outsource it to a service provider. According to media reports, Unilever has outsourced their administrative HR functions to Accenture.
This includes setting up a performance management system, building an employee handbook, and undertaking activities that offer value addition for employees.