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Things to Consider before Outsourcing HR Processes

by: Sarah Joson

Friday, August 14, 2015 |

More entrepreneurs are realizing the benefits of outsourcing certain functions. These benefits are often hinged on cost reduction, innovation, improvements in efficiency and customer services, and motivate employees. In past few years, the human resources segment is one of the areas that firms are seen investing on.

What to consider before outsourcing HR processes


A post at SpendMatters.com explains that business process outsourcing (BPO) is a commoditized tool which involves the transfer of ordinary, repetitive tasks to a solutions provider to help the client focus on the core processes of the company. It is also anticipated to improve the levels of service, productivity, and help the company be more cost-efficient. Some of the HR processes that can be outsourced are:

•    Payroll
•    Compensation and Benefits Administration
•    Hiring and Recruiting
•    Education and Training
•    Personnel Administration

However, based on the collective data, companies are outsourcing HR processes because they are looking for effective and agile global payroll solutions, while other firms outsource to boost customer involvement from small and medium businesses, and easily comply with the changes in regulatory stipulations and concerns particularly in benefits administration.

But before jumping in on the trend, you must first look into factors that can help you select the right outsourcing partner. Take a look at their track record, their rates and packages, service level guarantees, clauses that can bind you with the provider, flexibility, and level of specialization.  

Like in all types of outsourcing, business owners are worried over several challenges that they are likely to encounter. Since work will be done remotely, they fear they will lose control over the operation, and it will stray from the original objective of the project. Moreover, it is anticipated to affect the morale of internal HR employees.

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