Why do Organizations go in for Human Resources Services?

One of the most common phrases seen in the corridors of corporate offices refers to the workforce or “people”. Employees or the human resources are considered as the most important and valuable assets for any company. In the competitive labor market, it is very important to ensure that the needs and requirements of all the future and current employees are addressed quickly and correctly, to retain them for a longer period. The dissatisfaction of the workforce leads to high attrition rates and loss of reputation in the employees market.

Under the circumstances, it becomes important to outline the organization’s HR needs and make sure that capabilities are in place to achieve the right results. In most circumstances the business firms are not fully equipped to handle the diverse range of work processes and functions associated with the human resources department. The lack of proper infrastructural support, access to the updated information in the employment markets and sophisticated software, makes it important to avail human resources services. It is now easy to find human resource outsourcing companies that are expert in handling an entire range of HR requirements and needs.

Human resource outsourcing firms are usually of two types. Some of them are generalists and offer an entire range of HR services to cater to all the functionalities while others are firms that specialize in certain areas of human resources services such as payroll processing or recruitment. A preliminary research over the levels of control required over the HR functions and the size of the business has to be done before deciding to go for complete or partial human resource outsourcing to third party firms.

Some of the various human resources services offered by the HR outsourcing firms are outlined below:
1. The handling of recruitment, training of personnel and their development.
2. Overseeing the staffing needs and requirements and the co-ordination with the general hierarchical and organizational structure.
3. The tracking of the strategies, goals and objectives of the departments of the clients.
4. Providing the requisite levels of training to the managers and employees.
5. Organizing the employee orientation programs.
6. Handling the benefit administration tasks of the company.
7. Management of payroll processing.
8. Handling the compensation, salaries and bonuses of the workers.
9. Implementing a proper Human Resource information System.
10. Development and Implementation of a compensation program.
11. Writing and confirming the affirmative action plans of the department.
12. Creation and review of a performance appraisal system.

It is a common norm for SME’s to have 30-2000 employees. The decision to hire human resources services is taken with the intention of concentrating on the core processes and business functions and relieving the personnel of the generic human resources activities. Human resource outsourcing helps in the easy handling of administrative overloads too.

A properly implemented human resources program leads to benefits such as improved employee relations, reduced operational costs, accessibility to the services of skilled HR professionals, an increase in the overall performance and efficiency of the organization and the elimination of the redundant and non performing processes in the human resources department.