Future of HR Outsourcing and Human Resources Management

Future of HR Outsourcing and Human Resources Management

The inception of Human Resources Outsourcing

Outsourcing which has gained much hype in today’s ultra-modern society is not newborn but has been in practice since the 17th century.

However, the concept of service outsourcing came into vogue after the LPG movement in India (1990’s) and since then it has been thriving at an astronomical tempo.

HR Outsourcing Definition

Human Resource Management Outsourcing Future
Human Resource Management Outsourcing Future

Human Resource Outsourcing is defined as the process wherein an external vendor, a wizard in handling HR functions will help your company unravel it’s not so strategically critical HR functions in the utmost time and cost-effective ways.

It helps your HR managers, usually swamped with more of administrative HR functions, to take out a considerable amount of time and engage oneself in deciphering the other dicey affairs that directly impact the corporate performance.

The functions which are generally outsourced are Recruitment and Staffing, Payroll administration, Training and Development, Performance Appraisals, Employee Benefits Administration, Employee Logistics Management, and other HR functions.

Why’s and What’s about Future of HR Outsourcing

Research estimates that 87% of the total funds of a mid-sized company are spent towards executing routine tasks, therefore, leaving just a meager sum left for other crucial operations.

The workload on HR managers has seemed to pile up over the years with literally no end at sight. The prodigies of the industry advise on remodeling the HR system via possible eliminations, automation and outsourcing.

But before getting any further it’s very important for you to be well versed with the interrogations, Why? and What? the reasons are, for you to opt to outsource.

Consideration of legal, procedural, legislative and other tax-related issues is imperative before you just stick your neck out for no good reason.

Few Global giants practicing HR outsourcing are

  • IBM outsourcing its HR functions to Workforce Solutions has helped them save $45 million per year.
  • Dallas-based Frito Lay outsourced its staffing and selection procedures to PepsiCo.
  • Unilever outsourced its HR activities such as payroll administration, record-keeping, training and development to Accenture.

Is HR Outsourcing worth the hype?

Initially, companies outsourced their HR functions to external agencies in order to cut down their operating costs. Nevertheless, with the heightened competition among companies across the globe, inclination towards HR outsourcing has increased due to its exposure to world-class practices, state of the art technologies, faster turnaround, so on and so forth.

In addition, it helps save time, energy and resources, cut down costs and improves efficiency and quality.

Future of HR post-COVID-19: HR, the Superheroes.

Future of HR Outsourcing after Corona crisis
HR Outsourcing people during Corona Crisis acted as superheros

The outbreak of the COVID-19 pandemic has left the economy into a paralysed state. If you are the ones rehearsing the age-old manual HR processes, I feel sorry for your rotten luck but don’t lose hope because we can still fix this together.

While those of you who already had your HRIS stored in the cloud deserve a gentle pat on your backs for your diligent move.

This on-going crisis has triggered the necessity to deploy a flexible labour model. Lack of remote working capabilities viz. absence of laptop, proper internet connection, access to secured internal sites have instigated the need to have ready-to-work resources handy, as we might face such catastrophe in the times ahead.

Thus, HR outsourcing appears to be a viable and integral solution for us now and in future as well.

Tips to outlive this jeopardy

  • Unfreeze, Change and Refreeze: Take this moment as an opportunity instead and reanalyze your HR system following Kurt Lewin’s change model. Try fixing the glitch that existed in the system and reform your structure to join the rat race.
  • Switching to automation: Digital working is the new normal as we see remote working and even hiring happen during this lockdown via Skype interviews & telephonic interviews.
  • Automation which was perceived as a job killer turned out to be the nation’s saviour. Hence, you need to figure out ways of automating your HR functions as much as possible and be prepared for such inferno in the times to come.
  • Monitoring safety and health policies: After everything settles down and you have your employees resume their work at the office, you will need to assure that none of the employees are following the old school tradition of shaking hands and are maintaining social distancing, adhering to stringent hygiene routines, etc.

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