In an attempt to conserve funds and to enable human resources professionals to focus on more critical & strategic concerns, many organizations have considered outsourcing their time-consuming HR functions. In this Astronology® we briefly discuss some options for HR outsourcing.
Third-Party Consulting / Shared Services
The idea of handing off tasks to another person to handle can be appealing for many with a full plate of work. A big appeal of outsourcing is the expectation of reduction in costs and conservation of staffing. Use of a Professional Employer Organization (PEO) to handle issues such as human resource consulting, payroll processing, and health benefits has been helpful for both smaller and startup organizations. Some employers have found benefits in having a third party provide employee support for routine questions on areas such as benefits, payroll, and employee onboarding. It is thought that this particular shared service provides an organization’s employees with quick, reliable, and consistent responses.
Another form of outsourcing used by organizations is Software-as-a-service (SAAS). In this option, organizations use software applications or services by a vendor. A 2015 SHRM article noted that “In the HR realm, employers most commonly pay for access to talent management [e.g. applicant tracking and training performance] and payroll applications.” Astron Solutions’ web-based talent management tool Flare® is an example of an effective SAAS system. Designed to fit the specific needs of any organization, the Flare® Talent Management suite allows for organizations to select the HR tools (or modules) needed to keep their organization running smoothly and effectively. Popular modules include the following:
- Job Descriptions
- Compensation Administration
- Applicant Tracking
- Pay for Performance
- Incentive / Sales Commission Tracking
- Exit Interview and Analysis
These tools allow for organizations to automate their HR functions, making it easy for organizations to access, input, calculate data, and make accurate decisions based on the information collected. For more information on Flare®, please visit the Flare® website and request more information!
Is outsourcing some of your HR functions the right move for your organization? It depends largely on your organization’s culture, needs, and even size. JustWorks, a company that provides some HR outsourcing functions, explains that “It’s so easy to take an all-or-nothing approach to the outsourcing of HR. But since each business is unique, one way to simplify the conversation around outsourcing HR or keeping it in-house is to consider the growth stage of your business.” They further suggest asking the following three questions when making the decision on outsourcing:
- Does the work being done require face-to-face conversation with or understanding by employees, whether that takes the form of complaints or performance?
- Do you have your HR team organize social activities and team building to boost employee morale?
- Are you planning to hire a lot of people every year?
If your organization requires more interaction with employees, an in-house HR team member is most likely needed.
Have you considered outsourcing or outsourced some or all of your HR services? If so, what has been your experience? Please comment below! We look forward to hearing from you.
Ethan Hansen says
I found it interesting how you mentioned how third-party HR consulting can be a great way to process and not stress about payroll. My boss has tasked me with researching HR in different business and finding a new HR program for our mining division. I will keep this in mind as I search for how miners can benefit from a third-party HR service!
Jennifer Brock says
A well informative blog on Human Resources and Outsourcing.
Sabio Systems says
Great post! thanks for sharing insightful article on HR functions and outsourcing. Very helpful information.
Bhagyashree Shreenath says
A good read! Outsourcing HR functions and implementing Payroll Management System will definitely help in managing payroll with ease.