Trends in HR Outsourcing
Your employees are the backbone of your company. If they’re unhappy, they’re more likely to move on or become inefficient at their jobs. Training and education only go so far. Employees who feel valued are going to stay and work hard to help make your business a success.
To appeal to workers, wages, benefits, and strong leaders are essential. Can you have strong leaders and happy workers if you’re trying to do too much? HR outsourcing is important because it reduces the time you spend on certain aspects of a business. You gain a team of experts to management and HR services like shopping for the best prices for health insurance coverage, payroll and taxes, and hiring.
HR outsourcing (HRO) should be a vital part of your overall business plan. Make the most of it by paying attention to what’s available and what trends are gaining attention.
How Does HRO Work?
Think about how a small business works. You have several employees performing their necessary job duties. You also have at least one person who does the payroll, pays employment taxes, manages the benefits, and places ads to hire additional staff. As is true with many small businesses, you might be that person doing the payroll, hiring, benefits, and taxes.
While you or another employee are busy with all of the human resources matters, what is in need of your attention? You might have to limit the time you spend training or getting to know a new employee. That employee now feels stressed trying to learn the job in a hurry. The lack of communication with you may make the employee feel a bit disconnected.
Perhaps you spend time with new employees. In order to make sure there is time for new workers, you put off paying vendors or attending important seminars that could advance your company. Is the stress of trying to balance too many tasks worth it?
That’s where outsourcing helps. Instead of stretching yourself too thin, you pay someone else a fee to take over human resources and administrative duties. It frees up your time to focus on making your company better than the competition.
Take a look at some of the current trends in HR outsourcing. Globally, leading market research firm Technavio finds HRO will grow at a rate of just under 9 percent for the next four years. With that growth comes three clear trends. They are:
- Attention on payroll outsourcing that can be used in multiple countries
- Increased focus on recruitment analytics
- Switch to cloud-based HR solutions
What Will These Trends Help You Achieve?
Employee benefits continue to change. It can be hard keeping up with the changes. By following outsourcing trends, you stay on top of what employees want and what will help your business provide the best possible options.
Multi-Country Payroll Outsourcing
If your company has branches in other countries, payroll and payroll taxes are a nightmare to handle. Say you own a company that makes snowboards in the U.S., but you want to add a second location in Europe to reach a broader market. You now have employees being paid USD and Euro or whatever currency is used in that area. You also have different tax laws.
Multi-country PO helps you pay your employees in each area on time while following the laws. By creating a payroll outsourcing model, you have one system to follow, but the differences in currency and tax laws are easily accounted for in that model.
Are you studying the trends related to the staff you hire? If you’re not, you’re missing a lot of information that can help you find the best employees. Think about the amount of time you spend setting up payroll and benefits for a new employee, training that employee, and the cost of a new uniform if that’s required. If that employee only lasts two weeks, you’ve wasted time and money.
Recruitment analytics look at several factors. Some weigh more heavily in helping a company figure out what criteria should be used when hiring employees and placing ads.
- Time between applications and placing an ad or recruitment request
- Number of applicants
- Number of positions to fill
- Length of interviews
- Time between interview and hiring
- Pay rate
- Time for training
- Length of employment
- Reasons given for leaving
- Management ratings
Once you have information on your own company, an expert in recruitment analytics will run comparisons to successful companies and see if there are changes you could make. It helps you find employees who want to stay and become a lasting part of your team.
Cloud-Based HR Solutions
Human resources are responsible for a lot of employee and company information. Think about the things they need to do their jobs. They need each employee’s SSN for both that employee and any immediate family members covered on an insurance policy. They manage your tax ID numbers, addresses, policy numbers, phone numbers, and more. It’s a lot of files to store on hard drives.
If the computer fails, the information is likely stored on SD cards or flash drives. If anything happens to those sources, you lose the information. It also limits employees performing HR tasks to a specific location.
Cloud-based HR solutions make the information available from any location. It makes it easier for everyone with a username and secure password to get work done. Clutter and paperwork are eliminated. A cloud-based human resources solution is also cost-effective to maintain.
Modernize your company’s HR department. Stop wasting time and money on tasks that you don’t specialize in. When you outsource your HR needs, you create a line of services that match your company’s needs and let you focus on your specific skills.
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