subject: Hroleveraging India [print this page] Human resource department is typically the back bone of a company because it caters to all the concerns and looks after the welfare of the employees and the employer. In the case of very small companies, with overall employee strength of about 10 employees, the role of human resource is minimized to almost zero. Regardless of what are your companys human resource requirements, the advent of human resource outsourcing (HRO) has made life easier for most of the small to mid-size companiesoutsourcing HR tasks have proved to be very cost-effective and efficient. Interestingly, most companies have reported a significant increase in company savings from 21% to 80% through HR shared services.
Most of the HR outsourcing firms can be categorized into two typesGeneralists and Specialists.
As the name suggest, the generalist HR firms offer a wide variety of human resource services where as specialist HRO firms deal with specific area of HR specialization. In its entirety, a human resource outsourcing company may offer the following services:
Over all management of the organizational structures and identification of staffing requirements
Human resource preparation- recruitment, training and resource development
Keep a tab on the department objectives, goals and strategies
Formulate development plans for employee and managers
Regulate administrative functions smoothly
Carry out employee orientation policies
HR fact sheets of various companies have shown that the incorporation of HRO services can dramatically reduce the time spent on HR related tasks of a company. As a company grows, the role of HRO becomes significant and indispensable in terms of recruitment and payroll management. A successful payroll system is as important as the making business-strategies because company resources accounts for dramatic contribution to the revenue generation of an organization. So, some of the most common HRO services in payroll management may include:
Payroll processing
Reimbursement processing
Statutory Compliance
Employee self Service
Comprehensive reporting
Payroll helpdesk
Enhanced data security
HRO India has shown promising growth in the last few years and industry experts are looking at good annual revenue yields this year too. Why HRO? The ripple-effects of globalization have been felt the highest in emerging economies like India, China, and Brazil etc. Hence, HRO is seen as a successful tool in meeting the increasing demands for skilled and trained in various industries. It provides skilled professionals (on required area of specialization), reduces the operation costs, improves employee relationship and lastly, develops healthy and ethical business practice.
For companies with company strength of up to 1500, HRO promotes business growth allocating HR functions to outsource firms or vendors enable the company to selectively concentrate focus on fundamental business activities. Many companies have benefited from HRO services across the globe and it is here to stay for a long time in India too.
