Today's Best Solution is Outsourcing To Avoid Costs

by Sunanda K. Chavan on Saturday 30 April 2011, 2:58 PM | Category: HR Planning, Recruitment & Selection | View: 3185 views
 
 
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Managing HR involves specialized activities such as training, payroll administration, employee database management, employee retention, employee benefits and a lot more that many companies either don't have the proper resources or time to manage on their own.

Saving huge amounts of money

Free of complications that are otherwise involved in maintaining an internal HR department.

Concentration on the core competencies saving their valuable time and resources

Avoidance of both operating cost & cost avoidance

Availability of specialized and cost effective services

Highly skilled team of consultant's employers can expect a better career path for employees

Every business has limited resources, and every manager has limited time and attention and hence by outsourcing managers can concentrate on core activities that serve their customers directly.

Markets, competition, government regulations, financial conditions, and technologies all change very quickly. When HR is outsourced the outsourcing firm is relieved from this tension as it gets passed on to the outsourced firm.

Financial benefits in the areas like:

Workers' Compensation insurance premiums

Health insurance costs

Employment Practices Liability Insurance

Legal fees

HR systems and infrastructure

The headache of managing the following things gets automatically avoided with the outsourcing of HR:-

Updating human resources forms and documents

Ensuring compliance with payroll-related regulations

Training managers on hiring, terminating and disciplining policies

Auditing employee files and records

Speaking confidentially with employees regarding complaints or grievances

Auditing human resources practices and policies

Through HR outsourcing you can be sure that your employees are always receiving the best possible in class human resources services.

Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional resources when you need them and release them when you're done.

The general opinion among Indian companies is that it is economical to manage all their HR processes internally. Consequently, there is not much emphasis on outsourcing. Typically, very small companies and very large companies are the ones that use HR outsourcing in a significant way. Besides, many multinational companies are fast adopting these practices.

Experts believe that in present times HR outsourcing is undergoing a transition phase. It is moving out from the realm of bigger companies to small and mid-sized organizations. There has also been a transition in its user acceptance, where it is moving from a corporate domain to PSUs and the Government sector. All this reflects on the growth of this sector. However, it would still be some time before we see increased levels of HR activities being outsourced.

 

 

FOR MORE READ ON HR OUTSOURCING SEE THE FOLLOWING :

 

Human Resource Too Getting Outsourced ! Is It Good Or Bad ?

 HR Response To The Organisation Outsourcing Their HR Operations 

 

 

 

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