5 Dec 2014, 20:12 — 4 min read
Human Resources Management (HRM) is a company’s system that ensures the effective and efficient use of human talent to accomplish organisational goals. It is an essential function for organisations to remain competitive and efficient.
Human Resources Outsourcing (HRO) entails the outsourcing of the entire HR function of an organisation or specific area of HR function i.e. Recruitment, Payroll, Performance Management System (PMS) or Rewards & Recognition System etc. It is suitable for all MSME’s who want to grow into big or large industries and create a brand identity in the industry. Human Resources Outsourcing is also ideal for companies that have an established HR system but feel over-burdened or the lack of specialisation in certain areas.
Advantages of Human Resource Outsourcing to SMEs:
The business of people is very complex and requires expertise to manage and deal with. An HRO service provider makes extensive investment in technology, methodologies and people.They gain expertise by working with numerous clients facing similar human resource related challenges.This combination of expertise and specialisation allows SME clients to enjoy a competitive advantage while helping avoid costsrelated to changing technology and training.
Re-engineering benefits through innovation
By engaging a team of highly skilled and experienced human resource professionals with knowledge of different industry verticals, the SME firm gains creative, innovative advantage and is able to adopt best practices in human resources that are relevant to today’s context.
Systemic processes for streamlined implementation
Quality HRO service providers are not merely HR consultants but also partner with SME clients in designing, implementing, performing and managing the entire HR function and integrating these into their business.Onsite expert HR teams support such SME clients on various HR challenges through proper system and processes that facilitate easy implementation and management of HR functions of their business.
Core business focus through consistency and continuity
SME Clients using HRO service can focus on their core business and are freed from devoting energy to areas that are not their expertise. Through HR business partnering, businesses will also be freed from tremendous risk or consequences of rapidly changing technology, statutory compliance requirements and industry HR practices.The HRO service provider will keep you up to date with contemporary technology, statutory compliance and industry best practices in HR.
Integrated HR solutions
Clients can get specialised support for all their HR needs like recruitment, training and development, payroll, statutory compliances and many more under one roof.All the services by HRO Service providers are provided in an integrated manner to ensure that delivery is driven by a single integrated system rather than disjointed offering.
As HR is an essential but non–core internal function of your organisation, it has to be a cost effective and value adding function.HR outsourcing model is based on a pay-as-you-use principle. This flexibility will ensure that your HR function will always be economical in comparison to an in-sourced model that also adds significant financial and non-financial value to your business.
SME Businesses are known for the Big dreams of their promoters. Is focus on areas of core competence, while partnering with experts in other areasa surer way of realising such dreams? If you subscribe to that approach, HRO services may be just the right place to start and a Big step in realising the Big business dreams.
Posted bySagar Jivani
Sagar Jivani is a creative & passionate entrepreneur, he focuses on providing the best HR services to MSMEs (Micro, Small, and Medium Enterprises) and also large scale...
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