HR Outsourcing

Written by: Mary Branca

The definition of HR management is: a strategic focus on creating the best possible work environment for every employee in the company. It may sound somewhat simple, but the HR function is very broad. It embraces areas like training and career development, benefits, compensation, employee and labor relations, business partners, data collection and legal issues. A small business owner would have to hire several individuals who wear many hats. This can become expensive plus no one person specializes in one particular function.

According to TBM, today over 70% of all businesses outsource one of more elements of their business. In the final analysis, the bottom line is the main reason. When certain roles and functions are outsourced, such as Human Resources, the company is saving on salaries, benefits and the rising cost of health insurance. In addition, the company has access to a broad range of specialists who are educated in such areas as employment law and Federal regulations.

The role of outsourced HR Management

Outsourced HR management puts a strong focus on your most valuable resource - your employees - as a major function of business operations. Professional HR outsourcing companies seek candidates with the best mix of skills, personality, and vision to help grow the culture and future of the company. Then, they determine the best ways to compensate employees and keep them motivated, such as rewarding them for regularly exceeding goals and making productive contributions towards company growth.

Once employees are hired, HR management personnel develop their role with the company through training programs. Known as human resource development (HRD), these initiatives enhance employee activities through supplemental training, career development, and organizational assistance.

An important function of strategic human resource management is to ensure a safe work environment for everyone. They want to protect employees' physical safety by caring for the work environment and preventing injury or illness. A security system may protect essentials to the business like computers and sensitive documents and also provide a feeling of comfort about safety. HR management also details employees' rights and responsibilities in the company handbook and through government-regulated posters that detail strict anti-discrimination and sexual harassment policies.

HR management best practices

While they don't directly make money for the company, outsourced HR departments help build revenue through strong execution of ideas and activities. With a series of best practice initiatives, an HR management company can assist companies with accelerating adaptation to change through sensitive issues like corporate restructuring or mergers.

They also create a stronger level of customer service by documenting policies for tending to client needs. Strategic human resource management helps other departments develop strategies to build the business and approach new ideas that help the company's growth.

Get help with your HR management by submitting a request for HR services quotes today.