Benefits of HR Outsourcing (HRO)

Benefits of HR Outsourcing (HRO)
In today’s times, there is a higher focus on company culture, work
environment, employees’ physical and mental wellbeing, and allied
employee benefits. In short, companies have started valuing the
happiness quotient of their employees. This change in outlook has cut
across industry niches and business scale. Gradually, human resources
have become critical for sustainable business growth.
Therefore, HR departments have moved beyond plain old payroll
processing and performance measurement. They are getting more into
team-building programs, creativity boosting office practices, work
flexibility policies etc.
This change has also permeated to HR outsourcing (HRO) agencies.
Businesses everywhere are finding huge benefits in outsourcing their
HR functions to human resource specialists. These specialists
undertake not only administrative tasks but also employee retention
programs, team development initiatives, and goal alignment.
● 4 Reasons You Should Outsource Human Resources
○ Better focus on growth strategizing
An outstanding strategy bears no outcome if not implemented
properly or not implemented at all. You create excellent employee
policies and productivity strategies. But they fail to be actualized
properly because much of your and your HR team’s enthusiasm is
zapped by menial (yet necessary) employer responsibilities like payroll
processing, administration, and compliance with a host of
governmental regulations.
When you outsource run-of-the-mill tasks to an outside HR agency,
you free up a lot of time for yourself and your in-house human
resource department. To ideate and execute strategies that will
actually boost workplace productivity and in turn, business growth.
● Complementary Support for Employee Compliance
Before onboarding employees and assigning them to their tasks, a
business needs to make sure that all human resources are in
compliance with various governmental authorities. This includes
mandatory policies for overtime, salary hikes, and other employee
benefits like insurance coverage, workers compensation coverage etc.
Furthermore, every employee must have in their records, proper
documentation for identity and address proof, and information about
payroll tax liabilities.
Failure to comply can have monetary and legislative consequences for
your company, a headache which you don’t want or need. By
outsourcing HR operations of employee compliance, you make sure all
your employees are compliant from the get go. Moreover, because the
outsourced agency will be a specialist, they will stay current on
changing compliance policies. They can ensure your team remains
compliant even if policies change.
● Better protocols and HR policies
Every department in your business will have its own set of policies and
employee protocols. To make sure both you, the managers, and the
employees themselves adhere to workplace HR policies, the HR
department typically creates guidelines and employee handbooks.
As a business owner, spending effort on these tasks may not be the
best utilization of your time. By outsourcing these tasks to an external
HR agency, you get two major benefits. First, you get the collaterals
needed for proper internal functioning handed to you.
Secondly, you will get a third-party opinion on things you may have
missed simply because of overfamiliarity with your business
operations. HR outsourcing gives you a fresh pair of eyes. It can
uncover avenues for improving employee happiness quotient and
workplace HR policies.
● Lower costs of employee management
If properly offloaded, HR outsourcing can save significant costs. You
do this by leveraging the lower costing in another region for the same
functions which are expensive if you were to hire in-house. But the
quality of output will remain consistent. You can pour these saved
costs back into your business growth.
● 6 HR functions to outsource
You can think of outsourcing distinct human resource functions or
build an entire dedicated team from an outsourced agency. Here, we
are breaking down HR functions into 6 avenues you may think to
outsource:
1. Talent acquisition, often also paired with job advertisement and
initial screening
2. Payroll processing
3. Employee benefits and welfare
4. Adherence to employment law
5. Employee relations and performance curation
6. Risk, workplace discrimination and bullying prevention /
handling
7. Reliable hiring support
We are here to shoulder some of the employee responsibilities for you
so that you can focus on building your business. With over 15+ years in
the Indian market, we understand not only Indian business, but also
the trends in employee policies and HR policies. We know what Indian
employees value at their workplace. Remunance will its tailor HR
service to your business objectives so that every employee aligns to the
bigger picture. If you want to initiate HR outsourcing, let us connect
and start right away.