HR processes: the need to offshore
HR is essential to the functioning of a company. They are the link between you and your employees. Yet more and more companies today are outsourcing their HR processes. Why, when it is such an essential part of a company, do the companies feel the need to outsource HR? In this post, we will discuss how outsourcing HR processes works and why so many companies are doing it.
While it is undoubtedly possible to outsource the whole of the HR department to an offshore destination, some companies prefer to outsource only some particular tasks and jobs of HR, whereas the rest are kept within their company. Such companies have a collaboration between their in-house team and their offshore team for improved efficiency and better productivity. Internet and technology has made it so that having a remote team is no longer a far-fetched dream. Depending on the company, some of the roles that are commonly outsourced are payroll management, administration of benefits, training and coaching, recruitment, background checks, etc. But sometimes even important functions such as employee relations, regulatory compliance, and performance management are also outsourced. When a company outsources one or all of these tasks to an offshore vendor, they essentially hire HR employees from these vendors who then come to work for their company. The company lets the agency know of their requirements, the agency provides the company with some of the best candidates, and then finally the company hires the ones they prefer. But if you are wondering how is having an offshore team any different than in-house team, then let us tell you about it. Offshoring provides several advantages to companies, and we are going to state them for you.
HR expertise
HR staff needs to be well trained and experienced to do the work they do. It is not always easy to find the ideal candidates having the proper knowledge. But offshore vendors have talented and skilled professionals with them who can perform their jobs for you exceedingly well, including recruitment and hiring, a highly detail-oriented and challenging task. Also, since the vendors work with a lot of other companies as well, they gain expertise in these fields and are well equipped to provide solutions to any issues that may arise.
Cost-benefit
Hiring locally for exceptional HR talent can be costly in a country like the USA. But the same skilled employee costs a lot less when hired in an offshore destination such as India. Not only is it a cost-effective option, but the lower wages also allow you to hire a proper HR team instead of one or two employees, and thus you can cater to your company’s HR needs much more efficiently.
Focus on core business
No matter how important HR processes are to a company, they are still not integral to the company. They are not the core function. Running an in-house HR department can take up a lot of your time, energy, as well as capital. It keeps you from focusing on your core competencies and growth strategizing. But by outsourcing it, you clear up space and time to concentrate on the actual business.
Access to technology and tools
The HR department is not only the employees that run it, but it also includes the latest tools, applications, and technology that they are equipped with for increasing work efficiency. When you outsource HR to an offshore vendor, it is their responsibility to provide your staff with all the latest hardware and software and other necessary infrastructure to perform their jobs.
So, there are distinct advantages to having an offshore HR staff as opposed to having a full-fledged in-house team. Even when your company outsources only some of the HR roles and tasks, it still stands to gain immensely. The in-house HR staff gets to focus on their strategies and planning instead of performing the laborious, mundane, and time-consuming tasks. Either way, you enhance productivity in your company with increased resources at your disposal. The key lies in identifying the vital roles of the HR department in your company, keeping them in-house, and outsourcing the rest of it.
With the right offshore vendor, you will get to maintain control over your offshore HR team and have them work as per your regulations. This way, the work done is of quality that follows your company’s guidelines. So, it may seem unlikely at first to outsource HR, yet it is quickly being implemented widely. Outsourcing HR functions will not be entirely out of the ordinary, especially in this age, as it allows you to keep up with your competition and gain a strong foothold in the market.