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Outsourcing HR functions is not only enabling the companies to cut down on their expenses but also allowing them to focus better on their business goals.
FREMONT, CA: HR offers a wide range of responsibilities to a company. However, it also poses a significant burden in terms of investments. Especially for a small company with limited resources and time, it’s difficult to divert the assets toward HR setups. On the contrary, outsourcing HR functions can relieve the administrative workload for a company and save significant time so that it can focus on its business objectives.
Outsourcing HR functionalities can offload a company’s task significantly. For instance, an HR outsourcing company manages a wide range of HR functions that would otherwise have been outsourced to various providers. The functions include everything from benefit plan management, payroll processing and recruiting to administration to training and more. If one provider takes responsibility for various HR functions, it will not just mean less time spent on administration but also less time spent managing vendor relationships as well.
It’s important to find an outsourcing company that will work to offer services that are accessible and easy to use for the employees. As management of HR services is crucial to a company’s business, it’s crucial to the company’s success. Here are the major HR outsourcing trends:
Small Business HR Outsourcing Trends
Some of the HR trends in case of small businesses have deeper roots such as the increasing tendency to move toward the cloud. Cloud computing is not a new concept, but it is getting even more popular with things such as outsourcing as it is a convenient way to share tasks and communicate, especially when the employees are geographically dispersed. Cloud computing also allows accessing information and checking in with outsourced employees.
Various businesses are also considering social media to recruit talent, even if that talent is outsourced. Social media also enables businesses to reach potential candidates irrespective of their locations. It can be a crucial tool for searching HR employees who are not necessarily loyal to the business.
A Word on Pricing
For several small business owners, the price will play a crucial role in determining which HR outsourcing company to choose. HR outsourcing services are highly customizable, depending on the needs of the client. It’s important to consider that vary between $45 to $1,500 per month based on the services required and the number of employees. Charges can vary from 4 percent to 8 percent of each employee’s pretax monthly income, implying that total cost will vary significantly depending on size. Sometimes services can be outsourced for a flat monthly price too.
A Shift toward Big Data Analytics
As businesses’ reliance on technology increases, the quantity and quality of data will increase simultaneously. Employees are also drawing investment in better HR systems for data with the growth
in the consumerism of the workplace. Employees are seeking out more transparent policies with respect to data their employer has on them.
However, for several organizations, meeting the needs of the business, handling employee data, and fulfilling compliance obligations is increasingly getting complex. Various HR functions, such as leave and absence management, performance management, and payroll generate different data sets that make sorting and centralizing very difficult, enabling the rise of the top HR outsourcing trend- Big data and analytics outsourcing.
With the increased adoption of technology, organizations now have a greater ability to store and track some critical business information. Here are a few HR outsourcing tools that can't be ignored in this context:
• Online Payroll
Outsourcing online payroll to an employer organization is a way organizations are using improved online capabilities to gain on business performances and for cutting costs. Increasingly the businesses are moving to online payroll solutions to make their payroll process more effective and to offset on management time that was earlier spent on manual payroll processes. Online payroll outsourcing also enables the employee to access and pay stubs from anywhere. Finally, the absence of physical checks and files also reduces paper storage and usage, resulting in a significantly smaller carbon footprint for companies.
• Workplace Wellness
Workplace wellness is increasingly getting outsourced to the vendors outside the organizations. Apart from offering guidance on health insurance products, external vendors are expected to starting and developing wellness programs in the workplace. The need for wellness consultants is rising with an increase in the popularity of workplace wellness within an organization.