HR Outsourcing in Crumbling Economy
HR outsourcing received great momentum during the recession. There were many factors that encouraged the HR outsourcing in the economic downtimes and that helped organizations get back on track.
The recent recession brought about many changes in the way organizations worked. Outsourcing of many services became a prime method of getting their core business back on track. Human resource outsourcing was one of the services hired by organizations as a means of gaining back control over their business during the recession.
Many factors played a major role in encouraging organizations for outsourcing their HR services during the recession. Some of these factors include:
- Reducing costs of employment and managing non-core business functions
- Strategic management of personnel
- Benefits administration for employees
- Risk and compliance management against government regulations
- Shifting the focus on core business functions
- Outsourcing their HR functions to an outsourcing agency helped them reduce the costs behind streamlining these functions and employee management. Organizations were able to hire the services of an entire HR firm, along with its personnel, within the cost of one internal human resource manager.
- Talent management was one of the biggest issues for organizations during recession. Retaining an employee or hiring a new candidate was one of the most difficult tasks, cost wise. Human resource outsourcing made it easy for organizations to retain as well as hire highly skilled candidates required for their business. This was because, the payroll responsibilities of newly hired candidates and benefits administration of the already hired employees was now transitioned to the outsourcing vendor.
- An HRO firm generally has a dedicated team of personnel who study and analyze the constant updates and upcoming government regulations. Hence, outsourcing HR functions in a down economy can further save you from any repercussions of compliance gaps.
- When such functions, which are in no way revenue generating for your organization, are handled by a third party vendor, it leaves you free to focus all your resources and personnel on your core business functions.
As a result, organizations, driven by these factors, opted for HR outsourcing during recession and gained great advantages.
The benefits gained upon hiring a vendor for managing the HR functions, were as follows:
These are, in general, the factors that drove organizations to outsource HR functions during the recession, and some of the advantages of the same. If your organization is looking for a solution that will help you focus on your core business activities and increase your top line, Rishabh BPO can prove to greatly helpful. Talk to our experts at 1-877-RISHABH (1-877-747-4224) or fill in the contact form.