Competitive Advantages of Outsourcing Human Resource Functions

Generally, a human resource department to run efficiently requires execution of multiple layers of operations. For example, an effective recruitment process requires not just a good job interview or group discussion but also physical background check of candidates and proper promotion of vacancy information to get the right candidates for the job interview.

Similarly, HR department also oversees payroll, training, appraisal, assessment, medical, etc. That is why for many businesses, the various functions of the HR department are too comprehensive and complex to maintain in-house. Businesses that outsource HR functions receive several advantages that support the company’s bottom line. In this blog, Mr. Atul Mahajan, Director of Trendsetters Facilities and Technical Services Pvt Ltd which is Delhiā€™s top Human Resource Outsourcing company says the advantages of outsourcing HR functions are: –


Outsourcing HR functions create higher possibilities for human resources management performances in any organisation. The extended and skilled manpower, infrastructure, technology and expertise that an outsourcing HR and Manpower company offers, helps the organization to perform difficult and diversified HR tasks with ease. HR duties such as physical background verification of candidates, direct follow-up with a large pool talent for an interview, organising and managing walk-in interviews etc become better managed. Also, outsourcing helps employers and managers spend less time doing paperwork and more time dedicated to improving the efficiency and effectiveness of the workforce.

Cost Savings

Outsourcing helps reduce the cost of executing HR tasks that are not done consistently but occasional, it saves a company from the risk of excess cost burden from HR operations that otherwise would need permanent HR staff, excess office space, training and additional manpower administration. Furthermore, outsourcing costs are variable and can be reduced as per business needs.

Risk Management

Human resources outsourcing firms help businesses minimise risk. Sometimes certain employment and labour laws differ from state to state that becomes difficult for a geographically centralised HR office to follow for different employees deployed in different state branches. Outsourcing firms employ HR professionals whose purpose is to stay abreast on a variety of federal and state employment laws. HR staff helps businesses comply with these laws to avoid costly lawsuits brought on by employees. HR firms also maintain and audit company policies and practices to ensure the organisation and its employee’s best interests remain protected.

Employee Development

Outsourcing HR functions help businesses manage employee performance and development. Providers implement performance management plans to ensure employees comply with company policies and procedures and successfully meet business goals. Outsourcing firms periodically monitor employee performance and report findings to management. This reduces the workload of managers by minimizing the number of administrative responsibilities they must focus on.

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