Why do companies outsource HR function ?
Any activity in which a company lacks internal expertise and confidentiality and requires an unbiased opinion on human resources, can be outsourced. An important reason why various businesses turn to outsource HR services is that they do not have the time or expertise to deal with the situation. HR outsourcing can be segregated into two broad categories: Transaction and administration outsourcing and HR consultancy. Transactional outsourcing is more of day-to-day or month-to-month requirements, and constitutes services like payroll and benefits.
What are the services offered ?
While outsourcing HR functions, some services go with the"all-or-nothing approach, requiring that they handle all your HR functions or none at all. Others offer their services in a way that one can pick and choose from the services they offer.
Typical services include: Payroll administration: Produce checks, handle taxes, and deal with sick time and vacation time.
- Employee benefits: Health, Medical, Life, 401(k) plans, cafeteria plans, etc.
- HR management: Recruiting, hiring, and firing. Also background interviews, exit interviews, and wage reviews.
- Risk management: Workers' compensation, dispute resolution, safety inspection, office policies and handbooks.
Job Opportunities
Human resource area has large number of job openings. A lot of big companies outsource their HR function to offshore creating a vast requirement of candidates with the required expertise.
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