HR Response To The Organisation Outsourcing Their HR Operations

by Sunanda K. Chavan on Monday 24 January 2011, 11:34 AM | Category: Human Resources| View: 1620 views

HR Response To The Organisation Outsourcing Their HR Operations 




Firstly let us look at the tips that can help us find an efficient HR consultant, the debate on whether we should possess it or not will be a later talk.

Avoid potentially costly litigation by establishing best employment practices and training, and upgrading sensitive recruitment practices. Consultants can recruit and hire employees.

Help the company get through times of change by covering hiring and compensation, as well as investigating, documenting and dismissing employees.

Save money by contracting instead of employing a full-time HR executive.

What mistakes people generally do while hiring consultants?

Firstly not having a contractual agreement with the consultant, possessing a clear relationship with your HR consultant is important specifying the agreed work and timeframe within which it needs to be completed should be agreed and signed by both the parties.

Secondly a background check is important. Consultants vary widely in their skills & abilities hence knowing them are your responsibility and not theirs.

Even before hiring an HR consultant, be sure that one of your internal employees does not possess the required skills; because if they do he/she should be provided with a chance to show their skills and be a part of the org along with enhanced responsibilities.

Before deciding the compensation scale with the consultant, taking into the consideration the latest trends in the market and then coming to a conclusion is essential.

The overhead expenses do occur apart from the fees that you give the consultant. Hence planning for the same is also desired.

Make sure that the consultant is competent enough to work on your project.

Conducting a serious interview with the HR consultant is essential because it is imperative that you conduct a comprehensive interview.

Since contractors are free agents, you need to keep in mind that they may work for your competition after completing your project.

Lack of clear communication is a common mistake.

But using contractors/consultants can have its own set of disadvantages:

You may not have the same continuity in the relationship as you would have with an employee

You may have to pay high fees to the consultant

You have limited control over the consultant

You run the risk of tax problems if the consultant in fact operates like an employee

HR outsourcing is sort to save costs. But the costs to train staff supervise HR department. Businessmen that turn to this option often, lack behind in savings.

If the staff of a company perceives outsourced HR companies as a threat, there may be some internal push back against the switch.

Businesses looking to outsource HR functions need to be careful to protect themselve

Undertaking internal reviews, coordinating external reviews and advising on related processes as needed.


Providing an efficient and reactive consultancy service to staff and senior management.



Conducting investigations and research into reclassification, classification and criteria advancement submissions and preparing appraisal reports of employees.




Undertaking quality assurance checks and liaising with external consultants and management to ensure effective meeting of guidelines and standards.




Identifying, reviewing, and advising on tasks related to recruitment process and employment strategies to meet human resources requirements.




Coordinating and participating as a selection panel member in recruitment process, including selection, appointment process, preparing reports.




Undertaking quality checks of selection and recruitment processes and reports; liaising with external consultant and management to ensure effective meeting of guidelines and standards.




Analyzing people relating metrics, trends and making recommendations to HR manager for any action.




Managing all activities in association with information related to employee perception surveys.




Working with HR team member to ensure effective meeting of organization objectives through collaboration, openness and personal development.




Developing, interpreting and evaluating human resources operation guidelines and policies.


Liaising with other agencies regarding the issues related to procedures and policies of human resources.


Investigating, researching and preparing brief notes or reports on new policies, procedures, and practices of human resources to ensure accurate service delivery.


Undertaking special projects related to issues of human resources.

 Keeping up current issues and new developments of human resources through job rotation programs


 You can reap some rewards by contracting with independent contractors/consultants instead of hiring new employees. The advantages include:


You get special expertise

You use them as needed

You save on tax contributions

You save on benefits

You have flexibility in the relationship

You can terminate them easier than terminating employees

You can remove the burden of staffing issues thus the consultant taking care of the HR issues.

Maintaining HR strategies is an impotent part of any org. that goes parallel with the business objectives.  

Things that an HR consultant can do for you are

Performance review system integration with the business.

Effective communication of decision-making process

Easy succession planning

Providing training to line managers

Managing HR policies and handling various employee related issues are left for consultants concern. Policies regards

Health and safety needs of the employees

Maintaining discipline among the employees

Management of issues like sickness and absenteeism from work

Grievance handling

Redundancy among employees

Duties and Responsibilities

HR consultants keep track of vacancies in companies and also may need to contact them in order to find out if there are any posts empty in those companies, thereby generating new business

Besides getting vacancy details from the employers, they also interview and test job seekers in order to find out which candidate is suitable for which job

They need to match candidates to jobs to build a pool of potential applicants

Consultants screen and short listing these candidates for the employers to interview

They can also be compared to headhunters whereby they find candidates for executive and specialist positions

They also need to build relationships with employers and job seekers

Meeting targets for vacancies and people placed is also part of the job

They have to keep records of all the placements and negotiating fees


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