HR Outsourcing: The Fundamentals

HR Outsourcing: The FundamentalsFor reasons of having no time and resources tomanage human resource functions, companiesusually resort to HR outsourcing. It is acost-effective way of managing human resourcefunctions without having to resort to employingpersonnel for an in-house HR staff.There are a lot of benefits that businesses cangain from outsourcing HR tasks. One of the mostappealing benefits is the ability of a company tofocus on their core business activities while

still having effective HR policies.Is HR Outsourcing For EverybodyGiven that HR outsourcing is beneficial,unfortunately it is not for everybody. There arepros and cons in outsourcing and it all dependson the situation of a company. To better assesswhether HR outsourcing is right for you here isa guide:1) Do you feel comfortable letting other people(outside of the company) take care of the HRfunctions? There are people who just can 抰 trustoutsiders to handle any of the company 抯functions most often because of trust issues.This kind of thinking however is very muchacceptable since it is possible that there arefirms that take advantage of their position.2) Does the company have enough resources to takecare of HR functions? If a company has the ability

to handle their own HR functions, then there isno need to outsource. This is most especially truein big companies. But if you lack the resourcesand HR representatives to do the job effectively,then you may opt to go for HR outsourcing.3) Which is more costly? It should be evaluatedwhether outsourcing is more cost-effective thanhaving your own staff for the HR functions. It istrue that HR outsourcing usually costs less butthere are some situations wherein this is not thecase.How To Choose An HR FirmWhen you have decided to go for HR outsourcing,you need to choose wisely which HR firm to chooseto avoid any complications in future.Companies have different criteria when choosingHR firms. Some decide basing on costs, somecompanies look for companies that are committed

to quality and there are companies that are stricton looking for both cost efficiency and quality.When choosing an HR firm, you may want to considerthese following criteria: First, you need to knowthe firm 抯 offered services. Second, you need toknow the level of expertise it has in terms of yourline of business. Third, you should assess thefirm 抯 general HR experience. Fourth, there isa need to know there available resources and lastbut not the least, you need to be informed howflexible the contracts are.An HR firm whether outsourced or in-house isconsidered as an extension of the company so youneed to have one that fits your image. That is whyyou also need to consider the kind of HR firm youwant to hire. An HR firm specializing in law firmsand financial institutions may not match your newbusiness. It is possible that it will not be ableto know and understand your needs.

Types Of HR FirmsThere are basically two types of HR firms:Professional Employer Organization (PEO) andHybrid HR firm. Professional EmployerOrganization is for companies who are comfortablewith handing over the whole HR functions to a 3rdparty organization. However, if you have anyinhibitions about letting somebody else take careof the HR functions, then you may opt to go forthe Hybrid.