1. Introduction
If you have employees then it goes without saying that you will have HR issues. Recruitment, selection, contracts of employment, retention, policies and procedures, performance management - the list is endless. Inevitably these issues are left with the Managing Director, Finance Director or Company Secretary if the organisation doesn't have the luxury of having a HR professional. It's not the MD's, Finance Director's or Company Secretary's job to be the HR Manager so where do you start?
You can either do it yourself and become a HR professional overnight or you can outsource your HR function. Outsourcing - a wonderful concept and a viable alternative to in house management. Also known as contract services, partnership, out tasking or co-sourcing. Whatever the phrase, the concept is still the same - trusting another company. This company will most likely be a professional services firm with qualified consultants who are continually updating their skills and knowledge in order to provide organisations with such a service. Once thought appropriate only for large companies, outsourcing is now finding its way into small and medium sized organisations. By allowing an outside firm to handle the HR issues you may reap rewarding dividends such as your own time and cost.
2. Benefits of outsourcing
The benefits of using such a service are ten fold. It can improve the company's focus, reduce operating costs and cover resources not available internally. More and more companies are outsourcing due to tight budgets and the never ending changes in employment legislation and HR practices.
How much of a project do you outsource? A single phase of a project (e.g. planning, design, development, implementation and revision) can be outsourced or the entire project can be carried out by the consultants.
Today, more and more organisations seek outsourcing as a solution with a means to a more profitable end. With competition pressures rising organisations' seek other methods to solve business problems. Outsourcing can introduce creative thinking and the potential to get a fresh look or gain a new perspective for existing problems.
By outsourcing the HR function, you are bringing qualified people into an organisation without having to hire them as full time employees. Most importantly outsourcing this function can save time, money and energy. Deadlines can be met, projects can be completed and labour costs can be reduced because you can hire on an 'as need' basis.
