28 May 2020 Ankit Chadha

Know 3 Elements of a Successful HR Outsourcing Strategy

Hr Outsourcing Strategy | TRC Consulting

The role of human resources is under scrutiny with companies who are continuously trying to expand and meet the dynamics of an ever-evolving business landscape. Organizations must add value to the services combined with a plan to drive lower operating costs. Outsourcing non-core activities stipulate opportunities for human resources (HR) to focus on tasks that add more value to achieve end goals – and not stay restricted to administrative activities.

What is Human Resource Outsourcing?

HR outsourcing is a practice of sub-contracting the roles of human resources to an outside supplier. It saves companies from overhead costs. However, it is only one of the benefits of a successful HR outsourcing strategy.

At TRC Corporate Consulting, we offer the following HR outsourcing services:

  • Payroll and related compliances
  • Benefit administration
  • Administration of lifecycle of employee activities
  • Training
  • Labour law compliances
  • High volume recruitment

Based on our expertise and findings, we can say that there are many factors responsible for the success of human resource outsourcing. So, we have listed a few key elements that are essential for developing a successful strategy for HR outsourcing, find them below:

  1. Understanding Internal Functions of HR

Many times, organizations fail to recognize and evaluate HR functions that are being taken care of by their departments. Inadequacy leads to an arrangement between the company and the vendor that does not define services properly. As a result, it also fails to offer the anticipated cost-savings benefits. It requires a large number of internal workers to fill the gaps along with managing the outsourcing partner. Therefore, it is essential first to define cost-saving areas before opting for HR outsourcing.

  1. Knowing Outsourcing Options

HR outsourcing vendors typically offer strategic or transactional services, as there are many functions available for HR outsourcing. Since vendors give niche services, it can be replicated through multiple clients. On the other hand, strategic HR outsourcing functions as your business partner to offer support and assistance. Therefore, an organization should prioritize its needs to understand the difference between two types of services and identify the one best suiting for successful human resource outsourcing.

  1. Measuring the Processes

Measuring the processes handled by the internal human resource department is of utmost importance for strategic HR outsourcing. Some of the HR processes that require to be measured are payroll, staff administration, ancillary processes, recruiting, training and benefits. A business should rigorously test human resource processes before outsourcing, which includes a firm benchmark for evaluating the performance of the vendor's services. You should note here that comprehensive, frequent, and ongoing process assessment during the HR outsourcing contract help in dealing with issues that can occur at later stages.

Benefits of HR Outsourcing:

  1. Cost-Effective

A fully functional, well-trained department needs skilled personnel and adequate office space. HR outsourcing provides a cost-effective solution – be it small, medium or large businesses to avoid overhead costs. In addition to it, HR outsourcing costs are predictable, which can also be raised or reduced as per future needs.

  1. Increased Efficiency

Many businesses prefer outsourcing HR functions as it contributes to greater human resource productivity within an organization. HR outsourcing helps streamline essential activities like compliance, payroll, and employee administration. By outsourcing these services, businesses certainly get more time to concentrate on revenues and other critical business activities. Hence, increasing overall efficiency.

  1. Ease of Risk Management

HR outsourcing helps lower business risks. Since various laws and regulations get updated regularly, staying up to date with the latest methodologies and technology may become difficult for businesses. Companies offering HR outsourcing services have experts who keep themselves updated with the latest provisions; therefore, companies can stay confident of uninterrupted results. HR outsourcing gives access to a pool of talent, knowing the latest industry trends.

How TRC Helps You with Outsourcing HR Services?

Since its inception, we, at TRC Corporate Consulting, have believed in and nurtured a 'People First' ideology. We practice the highest standards of ethics and honesty, enable transparent communication and drive confidence and confidentiality.

Our objective is to enable you to accomplish all your HR requirements proficiently. With the expertise of our HR consulting team, we help drive value to your business and achieve business goals with the tailored advantage of reducing risks. We also offer tailor-made solutions for your business's HR requirements. Contact us if you are committed to procuring the best talent or need any further understanding of our HR consulting services!

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