Human resources are essential in organizations, whatever their size: small businesses, start-ups, SMEs, associations or large groups. However, Best HR Outsourcing Services for Small Business they require real organization, tools and skills, particularly with regard to legal and contractual obligations.
Human resources also need flexibility to adapt to the company’s situation, whether in its growth or in times of difficulty. In these contexts, it is sometimes preferable to know how to delegate certain time-consuming tasks and to outsource all or part of your HR to do things well and focus on your core business.
So, what are the advantages of this outsourcing, also called outsourcing, and how to choose the right partner? Let us guide you.
What is Human Resources Outsourcing?
Outsourcing your Human Resources means calling on an external service provider to manage part or all of your human resources for a one-off mission or for HR support over a longer period depending on the needs or topics.
The latter can be very numerous as human resources are a vast field in an organization, ranging from recruitment to the development of employee skills, through the administrative management of personnel, Best HR Outsourcing Services for Small Business the quality of life at work or the legal aspects relate to the law work.
As can be seen, these are important matters that should be entrust to a trust partner meticulously chosen for their experience and skills.
What are the most outsourced HR areas?
The most outsourced activities in the field of human resources are generally administrative activities that are often consider to have low add value by companies that prefer to focus on activities that require being at the heart of the organization.
Activities such as payroll, time management, recruitment or training are very often outsourced to an external service provider.
Certain strategic projects, limited in time and requiring specific skills, can also be outsourced, Best Human Resources Firm in Mohali, Chandigarh such as setting up an HRIS, for example.
Here are the most frequently outsourced HR functions:
- Payroll management
- Recruitment
- Training
- Setting up an HRIS
- Legal advice
What are the least outsourced HR areas?
Outsourcing certain activities is not always possible or desirable, even if it is a sustainable partner. We are thinking in particular of everything relate to HR strategy. It is indeed up to the leaders to seize this subject, to have a vision on the culture of the company, the objectives and the skills necessary to achieve them. A service provider will then have an advisory role to make a diagnosis with his external perspective and provide methods to build the strategy.
Many regulatory activities must also be managed internally. This is the case, for example, for social dialogue . It is up to the leaders to set up and lead the CSE. This does not exclude being accompany or coach to do so.
Management functions are also difficult to outsource, with the exception of interim management, which makes it possible to accompany a period of change or fill in a vacancy.
In addition, certain activities deserve to be internalize depending on the size of the company. A VSE will indeed prefer to entrust the management of its HR to a service provider or to call on a time-sharing HR when an SME will create a position of HR manager or even HRD once a certain workforce threshold has been reach.
Why outsource your human resources? What advantages?
Human resources are among the most outsource activities in a company alongside logistics, IS and accounting. Outsourcing offers many advantages:
Outsource to reduce or control costs
Human resources often represent the first item of expenditure in many organizations, in any case one of the main ones. Especially since the real cost of an employee is not limit to his salary and the resulting social and employer charges. You have to equip it, train it, provide it with mutual insurance, contribute to its transport costs…
In the control of general expenses, outsourcing is then often consider to limit the fix costs which adapt little to the activity.
In addition, in terms of human resources, it is often time-consuming and low value-add tasks that are delegate. Or activities whose volume is not sufficient to create a position.
The savings thus made make it possible to develop other important subjects such as quality of life at work or skills management.
Delegate certain activities to focus on your core business
Human resources represent an important part of your activity. Dealing with day-to-day hassles and administrative details is surely not why you chose to start or run your business.
Go back to what you did it for. But for that, you have to make time for yourself . You cannot handle the diversity of assignments that are normally handle by HR on your own. Entrust certain aspects of your HR to an external service provider so that you can focus on your core business, on running your business. Your employees will thank you!
Outsource to gain flexibility
An organization evolves over time, so do its needs. A start-up needs to structure itself to recruit its first employees and then adapt its HR to the pace of its growth. A VSE needs one day to recruit, then to manage the payroll, another day to negotiate a contractual termination or to train its employees. Sometimes, the labor inspector arrives and puts the finger on your company’s HR non-compliance and you have to set up your CSE and the regulatory display.
In short, HR issues are not lacking and it is often necessary to quickly find the best solution. Outsourcing then offers this flexibility of being able to entrust a specific mission over a given period .
Benefit from the skills and expertise of an HR professional
Swiss Army knives are good, but it’s often much better to have the right tool for a particular need . Except that it is not always available internally. This is particularly often the case for certain advance skills such as HRIS or regulatory aspects.
Outsourcing allows you to choose the most competent and most suitable service provider for your problem . He will make you benefit from his tools, his working methods but also from his network of partners and good HR practices from other companies, in your sector of activity or not.
Limit HR errors
In terms of human resources, you can quickly make mistakes that can have significant consequences for the company: making mistakes in your recruitments, not complying with your HR obligations, Best HR Outsourcing Services for Small Business making mistakes in your pay slips or even neglecting the integration or departure of its employees.
With its outside perspective and its expertise, an external HR service provider helps you to be vigilant on the points of non-compliance, to put in place all the necessary documents, to inform you about the latest developments and to worry, for you, that everything is going well in your business.
What are the different types of human resources outsourcing?
Depending on the subjects and the needs, the organization will have the choice between different types of outsourcing of the human resources function :
- Timeshare which allows you to benefit from a manager or an HR expert a few days a month according to your needs ( in RPO for recruitment ). The timeshare provider can be onsite or offsite.
- Consulting, which consists of entrusting a specific and time-limit mission to a consultant or a consulting firm, for example the implementation of an HRIS or the conduct of an HR audit
- Outsourcing, Best HR Outsourcing Services for Small Business which entrusts the management and operation of IT resources to a service provider.
Subcontracting, which makes it possible to delegate a company HR function such as payroll management, training or recruitment via a recruitment firm
What is the cost of HR outsourcing?
Unsurprisingly, the prices depend on many factors such as the type of service, the duration, the complexity of the service, whether the service provider must be on site or not…
The rate will indeed be higher for consulting or engineering services or lower for purely administrative production tasks. It can be negotiate if it is a service over several months. And some services can be package such as an HR audit, training, recruitment or payroll outsourcing.
How to finance HR support?
Know that you can benefit from financial aid for your HR support . The support-advice system set up by the DIRECCTE makes it possible, for example, to support VSEs and SMEs by financing all or part of HR services such as:
- Recruiting and integrating employees into the company
- Work organization
- Forward-looking management of jobs and skills (GPEC)
- Improving social dialogue
- The professionalization of the HR function in the company
The same applies to the training or recruitment of work-study candidates. Get closer to your OPCO who surely has solutions for you.
How to outsource the HR function and choose its service provider?
Independent HR consultant, HR part-time, consulting firm or recruitment firms, software publishers or integrators, organization or training center, accounting firm, lawyers… Choosing an HR service provider is not an easy task the offer is substantial. Identifying the best service provider is therefore the first challenge for managers.
Determine your outsourcing needs
Before choosing a partner to support you with your human resources, Best HR Outsourcing Services for Small Business you must know what your needs are .
To do this, Contact HR Essentia first examine the scope of the mission you wish to entrust to him as well as the overall strategy of your company . How many employees are affect? Where are they ? Is there an international, national or regional dimension? What has already been implement in your company? This will allow you to orient your search towards a partner adapt to your challenges.
