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What is Human Resources Outsourcing?
Lately, organizations have been relying on Human Resource outsourcing more frequently as it has become increasingly more difficult to stay on top of ever-changing employment legislation and related policies. Maintaining up-to-date HR policies ensures that other key areas in human resources, such as; talent acquisition, defining and aligning goals and objectives, setting expectations, increasing productivity of employees, providing learning and development opportunities, ensuring employee engagement and retention, defining total rewards, managing performance, etc. Many companies today have a knowledge gap in regards to their HR management and require an expert to fill this void and provide professional expertise. Human Resources Outsourcing or HRO is utilizing affordable and accurate 3rd party service to manage the functions of human resources within your company.
What are the services provided by HR Outsourcing Companies?
HR Outsourcing Companies generally perform the following functions for their clients:-
- Human Resources Gap Analysis
- Policy Development/Assessment
- Full Cycle Recruitment & Talent Acquisition
- Onboarding & Offboarding
- Performance Management
- Talent Retention Strategies
- Change Management
- Legislative Compliance
- Training & Development
- Health & Safety Compliance
- Compensation & Total Rewards
- And more!
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What are the Benefits of HR Outsourcing?
There are many reasons why organizations are choosing to outsource HR functions, primarily this is a more cost-effective solution and offers owners, managers and other employees of the organization significant time savings, and allows them to focus on what they do best – running their business.
Other advantages of fractional HR outsourcing services for small and mid-sized growing companies are:
- Cost savings: It is very expensive to fund a human resources department (or even a single HR resource), and many small to medium sized organizations just cannot absorb or justify this cost. Using an outsourced HR company is much cheaper and provides access to a wide range of expert professionals in different areas.
- Time savings: the human resources responsibilities and projects can consume an awful lot of time, so when a company chooses to outsource them, internal staff can dedicate themselves to more important matters.
- Access to professional human resources expertise: By utilizing an HR consultant with years of hands-on experience in a corporate role, post secondary education combined with human resources certifications/designations, you can be confident that you are partnering alongside an expert who will support you by recommending and implementing HR best practices that are adapted and customized to your organization’s needs.
- Complying with legal obligations: compliance in the workplace is not easy, and it is constantly evolving. There are regular updates to the ESA (Employment Standards Act), Canada Labour Code, Occupational Health & Safety Act as well as common law, so it is difficult to know if you are doing the right thing. A single mis-step or ignorance of the law can have serious consequences and liability.. An external HR outsourcing company can help you remain up-to-date and comply with legislative changes, and therefore mitigate risk to your business.
- HR Technology: HR outsourcing companies can recommend some of the latest HR platforms, apps and software that is available. Clients benefit from an integrated, automated and faster process that improves their ability to track and document employee information, sick time, vacation days, absenteeism, performance concerns, recruitment/talent acquisition and onboarding, and much more.
Why choose to Outsource HR?
- One important criteria for choosing the right HR firm for fractional HR outsourcing services is the years of experience of the firm. It is essential to choose a partner who has the experience, education and qualifications your company needs, as well as a proven track record in the field.
- HR outsourcing firms vary significantly in their costs, rates fluctuate significantly and some firms demand a monthly fee, annual fee and/or other minimum commitment. You need to consider which fee structure makes the most sense for your business and decide accordingly.
- It is also important to consider what type of HR support you will be receiving. Will you only have access to a call centre? Does the HR firm provide on-site support? Do they customize their information to suit your business and your industry? What are their business hours? Are they available in the event of an emergency or urgent request? The outsourced HR industry is a competitive industry and it is best to shortlist the top HR outsourcing companies and select the final one based on their ‘fit’ and your requirements.
Questions to Ask When Outsourcing HR
- What kind of services does the HR firm support?
- What experiences do the consultants have with companies in the same line of business as yours?
- How long have they been in HR outsourcing business?
- How are their upfront, ongoing, or additional fees determined?
- What support or documentation would they require from you?
- What additional support services this HR BPO provides
- How do they stay current on compliance issues, and how would they communicate those to us?
- What are the qualifications and experience of the consultant you will be partnering with?
Lisa Kay & PPHR in the Media
Based in Toronto and serving Mississauga, Oakville, Richmond Hill, Vaughan, Brampton, Hamilton, Aurora & Newmarket, Peel Region and Ontario. PPHR is an HR Outsourcing Company in various industries, including software development HR Outsourcing Company, information technology (IT HR Outsourcing), power, utilities HR Outsourcing and manufacturing HR Outsourcing.