4 Hidden Benefits of HR Outsourcing – Exela HR Solutions
In our previous blogs, we covered the topic of HR outsourcing and the common benefits that businesses experience after they choose this solution. Today, we will be looking at some of the hidden and uncommon benefits that businesses experience after delegating either some or all of their HR functions to an expert HR solutions provider.
What Functions Come Under the Umbrella of Human Resources?
This is probably the biggest, most important function of any human resource team, which is why it also demands a huge chunk of their attention as well as resources. Most businesses outsource recruitment to experience great benefits in terms of time and money saved. Outsourcing recruitment changes everything for a lot of businesses. They find more time to solve complex business problems. They save a lot of money. They get easy access to top talent networks. They can upscale or downscale their hiring on-demand, overnight, without paying extra. The list goes on. Global competition for most businesses is fierce. Therefore, businesses take advantage of areas they can leverage to improve efficiency and reduce costs to allow more time and human resources to focus on revenue-generating activities.
Payroll is not something that most HR teams are required to take care of, but it can very well be an integral part of some HR teams that are tasked with processing payroll. This scenario is usually seen in companies with fewer employees. HR generalists are required to calculate and process payroll for those employees every pay cycle. The biggest disadvantage such companies face in these scenarios is poor compliance management. Every established state/nation has its own set of employment-related laws and regulation laid out that have to be complied with if people who work in those states and nation work for your business. With constantly changing regulatory laws, it becomes extremely challenging for HR generalists to keep up with them. In the case of an audit, any inconsistencies can result in huge fines that have to be paid by the business in full and within a specific period.
Compensation and Benefits:
Compensation and benefits are probably the most critical function of any business. The way employees are compensated and benefitted is directly related to business growth and individual productivity. Bad compensation and benefits management can be because of various problems in an organization – negative work culture, high turnover, dropping productivity, low employee morale, etc. To add more complexity to these problems, it can be very difficult to detect and resolve a C&B problem because solutions that work for one organization do not necessarily work in other organizations. People behave differently in different environments and circumstances, which makes problem-solving even more difficult than it seems to be.
HR Business Partner Services:
HRBPs are the oil that keeps the engine running smoothly. Their areas of expertise include grievance management, leave management, coaching, regulation, compliance, organizing engagement activities, travel and expense management, and much more. They act as a direct link between employees and the HR department, which is why it is so important to hire the right HR Business Partners who have the right type of experience in managing people. One Gartner study also found out that organizations that hire high-performing HRBPs improve employee retention by up to 24%!
Learning and Development:
This is a new function that has taken off in recent years. Business growth has skyrocketed in almost every other industry in the past decade or two, thanks to constant improvements in technology. This growth in business resulted in competition getting fiercer. This eventually led to the boom in implementing learning and development programs for employees because businesses quickly realized that they could gain a real competitive edge if their employees kept learning and sharpening their skills as time progressed. Today, learning and development is a $400 billion dollar industry that keeps on growing. HR teams, outsourced or otherwise, all around the world hire top-notch L&D professionals, as they are called, to conduct training sessions and courses to keep their employees in sync with the progress that happens in the industry.
Also Read: RPO: Is It Right For Your Business?
Hidden Benefits Businesses Experience After Outsourcing Their HR Functions
Turning Variable Costs into Fixed Costs:
Generate Cash by Transferring Relevant Assets to the Providers:
Gain Market Access and Business Opportunities through the Provider’s Network:
Reputation Gain Just by Association:
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Need help in HR outsourcing? Exela HR Solutions offers world-class services in recruitment, global payroll processing, compensation and benefits, HRBP service, and learning and development outsourcing.
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