HR outsourcing: description, features and benefits


2019-05-02 23:20:28




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Work with human resources presupposes a cadre of highly qualified. Even if the company employs high-class specialist, it is still routine work delays and, as a rule, the time management and strategic issues is simply not enough. To solve this problem many businesses enlist the services of outsourcing companies.

HR outsourcing

The Process of transferring non-core functions of the enterprise management has long been dispatched at the mercy of outsourcing companies, including management personnel.

Available functions which you can pass on the mercy of third-party experts

For a better perception of all the features we have integrated in the table, which is presented below:

Corporate culture

- development of motivational programs for the staff;

- workforce planning and reporting;

- development and implementation of a common strategy of personnel development.

HR consulting

- training of employees;

- evaluation of staff;

- recruitment, interviewing;

- carrying out of seminars and trainings.

Personnel document

the listing.

processing, gathering and formation of primary personnel documentation;

- the creation and maintenance of files.

Manage payments

- payroll

- the formation of the prize Fund and payments from it.

The Last point is perhaps the most interesting. Especially if HR outsourcing goes Western company operating in our country. The confusion of the current legislation, including the payroll, often of foreign businessmen and heads baffled, therefore these companies, often farmed out this function to outsourcing. Moreover, the calculation of remuneration does not apply to strategic action, but personnel officers and accountants spend more than 60% of their time.

HR outsourcing

Major reasons for outsourcing

Recently, the outsourcing of HR administration is becoming more and more popular, and there are several reasons:

  • Our market “comes” many foreign companies that are not able to instantly grasp the peculiarities of our legislation;
  • The founders of the company are not willing to employ many staff to worry about buying and upgrading of special software, simply, want to save money;
  • The desire of the owners of the firm to focus on strategic and priority goals without being distracted by the selection and control of staff;
  • Quickly increase the support units, in comparison with the low growth rate of main business, that is actually reduce costs by reducing costs of labour of staff;
  • May be the reverse situation, when the rate of primary production is much faster, and the staff does not have time to handle and organize.
  • In the enterprise has many subsidiaries, which have different location around the country, but all the data flow into the main (head) office;
  • The urgency of finding qualified personnel, for example, to start a new project;
  • The lack of specialists in the field of recruitment, payroll.

The Advantages of HR outsourcing

First of all, if the company is a HR Department, it staff can focus on important issues, that is, to develop strategic plans related search, personnel development, evaluation and promotion.


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Second advantage: even if the HR Department or gets sick an employee is fired, do not immediately look for a replacement, the absent employee can always replace an employee by a third party organization.

A Large part of the responsibility for HR outsourcing borne by the company.

And the main advantage-cost savings.

Full combo and outsourcing

Personnel outsourcing personnel is usually the first stages is only on a combined basis, that is, functions of the Department of personnel transmitted only partially. Eventually, when between the enterprise and the outsourcing company established a trust relationship, the parties are satisfied with the relationship, then all functions are given to a third party.

outsourcing HR administration

How to select the external contractor HR functions

Before you decide on HR outsourcing, the business owner must understand that he wants to get in the end. That is the answer to this question gives a full understanding of what functions must be entrusted to an external company.

If there is no desire to outsource strategic issues related to the staff, it makes sense to start cooperation with a partner in terms of outsourcing HR administration, and further to transfer the function of calculating wages. In this case, the specialists of the company are exempt fromroutine and can focus on more important issues, for example, development of motivational programs to engage staff estimated.

the pros of HR outsourcing

If the main purpose – the development and implementation of motivation, training and loyalty to the company, it is best to contact a consulting firm. To begin with, the company will evaluate the status of staff, and then offer seminars or trainings, team building activities and training.


A Vivid example of – the need to develop a system of compensations and benefits. This program does not require constant adjustment, just one time, develop and, depending on the need, amend. In fact, it is project work, so it makes sense to draw a third party specialists that have experience in this field. In this case, only the find a suitable company to determine the budget and determine deadlines. As a result, the company saves money and time.

Often there are cases where HR outsourcing at the enterprise assumes only recruitment. This option involves two types:

  1. The Recruitment is carried out on an ongoing basis;
  2. The Project selection, i.e. the search or the enticement of high-class specialists or top managers.

Both options are quite costly both in time and in investment funds. In the first case, everything will depend on the regularity of the services, personnel outsourcing. The cost in the second case – is a direct correlation of professionalism and uniqueness of the profession, hence the considerable price the issue.

HR staff outsourcing

Dangers of outsourcing

In some cases Exceeds the allowable value measurements, and unreasonable. And sometimes suggestions of outside organizations surprised by its cheapness. This is due can be many factors. For example, the company does not have professionals, the entrepreneur just starting a business, therefore dumping. Other companies, on the contrary, deciding that they have no competitors, not interested in what is happening around. Therefore, the entrepreneur is very important very carefully approach the choice of partner, because of the mercy given to, though not the most strategic, but business processes.

Hence another problem: transferring all functions of personnel management, the business owner loses control, and if the outsourcing company was unfair their functions, restoring order will be difficult. Once the problem becomes clear, it will have to find very quickly a new company that provides such services, or to recruit new staff for his company.

Therefore, it is important a cautious and careful approach to the selection of a provider for the HR administration and personnel management.

personnel outsourcing costs

Be Sure to pay attention to the presence of insurance of professional responsibility. However, its presence is not a panacea, but because additionally, be sure to review the insurance obligations of the outsourcing company, check the insurance amount.

How is the price for services

Depending on the chosen form of the relationship is formed and the price. It will depend on the range of services that may include:

  • Personnel records;
  • Outsourcing the calculation and payment of wages;
  • Recruitment personnel;
  • Adaptation;
  • Psychological testing when applying for work, and after a certain period of employment with the company.

As for specific amounts, the cost of services as a rule, considerably varies and is determined on a contractual basis. Specific number to call is difficult, as all depends on the pricing policy of the company, specialization and qualification of the personnel you need, and the period of temporary employment. We can therefore give only average data: if the number of full-time and part-time employees in the organization is 16 to 50 employees, musaceae the price of services will be 100 USD + 25 USD for every 5 people over fifteen. But, again, the amount is rather arbitrary. All figures are negotiated directly with the representative autsorsingovoe of the company.

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