How Does Outsourcing Affect The Role Of Human Resource Professionals?

How Does Outsourcing Affect The Role Of Human Resource Professionals?

A survey by Deloitte revealed 72% of businesses agree that HR outsourcing enables them to focus on core business functions. 57% said that it is unarguably the best cost-cutting tool. However, these stats favour the business side of things. What about the HR professionals in the company?

Whenever a company starts outsourcing, it is readily perceived that the role of in-house HR professionals will start diminishing. There will no longer be a requirement of the department, and therefore, the complete killing of HR jobs for the future. 

Let us tell you that this is not the case. Human resource outsourcing is not a replacement for HR departments but simply expert assistance. The HR’s workload is significantly reduced thanks to outsourcing, and they improve their work quality in other activities. 

Before jumping in, let us understand the role of HR in a company.

What are the key functions of a Human Resource Professional?

HR professionals are present in the company to hire and sculpt talent. Their job is totally person-oriented and hence, requires patience and dedication. An HR’s prominent functions encompass a wide range of responsibilities. They include hiring the candidate, training and developing them, and finally, taking care of attrition. 

In all these procedures, staying compliant with laws and regulations is a must. Whenever an HR joins a company, they are loaded with employee-related tasks such as:

  • Recruiting and Retaining Talent
  • Employee Engagement
  • Performance Management
  • Payroll Processing
  • Compensation and Benefits Administration
  • Upskilling and Training Employees
  • Risk Avoidance

Out of all these tasks, payroll processing and benefits administration can be outsourced. The rest of the procedures like recruitment and training employees will remain with the in-house HR department. If performed smoothly, these tasks keep the wheels of the company running. They bridge the gap between the employee and employer. And HR is that bridge. 

Now that you have got a glimpse of HR life, let us look at how outsourcing will help them. Payroll processing and benefits administration is the most outsourced HR procedure. Therefore, we will focus on their effects on HR professionals’ roles.

HR Outsourcing Removes Redundancy

HRs motivate employees to perform better. Their job is to ensure the mental well-being of the employees at work. But what happens when HR gets demotivated? It affects employee engagement and productivity.

Repetitive tasks are tedious and cumbersome. The most time-consuming of these activities is payroll processing. It increases job redundancy and drains the HR professional’s energies.

Payroll outsourcing lightens this burden off the shoulders. The professionals are no longer expected to process payrolls and compensation. Consequently, they focus more on performance management and maintaining positive employee co-relations in the company.

Outsourcing also enables the HR person to free their schedules. They can take breaks without worrying about an employee’s unfinished MIS report. Evidently, the job gets more exciting as there is enough room for creativity.

HR Outsourcing Saves Time

45% of businesses spend an entire day per week on HR admin activities. A day per week will mean 52 days lost per year on non-core activities. It is an absolutely serious waste of time and effort. And in a business, every second counts. It leaves frankly less time to focus on employees.

In-house departments are busy doing back-office jobs. They lose time here that could have been utilized in employee upskilling and talent management. 

Moreover, employees must feel heard at the workplace, and HR is the ears of the company. They should also learn new skills that favour company progress. Additionally, HR is responsible for performance management and employee engagement. 

Learning new skills and technology is the best factor in employee engagement. Besides this, employees must feel safe in the workplace. 

Therefore, payroll and benefits outsourcing saves time to listen to employee concerns and train them better.

HR Outsourcing Aids in Making Reports

HRs need time to prepare and present reports to analyze employee performance. As the core element of their duties, performance management helps to gauge talent. It is crucial for the next step, which is developing training modules. 

Apart from this, HR must be free to listen to employee feedback and concerns. They need time to investigate any discrepancies in the company and solve employee disputes. They are expected to give risk likelihood reports in the event of serious complaints. 

In case of resignation, there is a whole different process of final settlements and severance packages. If the resignation is due to a violation of policies or legal problems, HR must investigate and avoid risks. Reports come in handy during such testing times.

Outsourcing frees HR’s time to make such reports without backing the workload. Leave management services from payroll outsourcing companies produce automated attendance reports. Furthermore, these companies also provide statutory compliance services. Thus, they make statutory reports, too.

HR Outsourcing Gives Expert Assistance.

As already mentioned above, outsourcing does not replace the in-house HR department but expands it. Expert heads are working together to solve problems and get the best solution. Outsourcing teams can also assist your in-house HR in constructing company policies, disciplinary actions, and statutory compliance measures. 

Entry-level HRs in your department have proficient mentors to guide them every step of the way. It creates a coordinated system of efficient payroll processing and benefits administration. Any doubts about the process are cleared. 

Effective outsourcing relationships can enhance a company’s human capital management. Collaboration with HR outsourcing companies will not diminish the value of in-house HR. Instead, they will assist HRs in focusing on employees rather than timesheets. 

Paysquare- Your HR Outsourcing Partner

At Paysquare, we have a team of competent individuals that handle the whole process of payroll and benefits administration. We strictly adhere to statutory compliance. Partner with Paysquare to add value to your in-house HR department.