Outsourced Human Resource Management

Outsourced Human Resource Management

HR outsourcing is the modern concept whereby an employment agency establishes a contract with the employer company to manage, develop and sustain HR processes. The employees thus hired are called third-party contractual hires.

A business is the name of a few coordinated functions. Human Resource Management is one of them. For years, all the businesses – SMEs, corporates, and multinationals – used to run comprehensive HR departments relying upon their own shoulders. Still, a few business giants are advertising, recruiting, selecting, and developing their employees through their personalized HR setups. Then came the concept of HR outsourcing and the idea got its initial recognition during the 1990s. Most companies completely outsourced their HR segments to the specialized HR management companies which are primarily established to hire, develop and retain skilled and unskilled labor and higher cadres for the companies across industries. Under HR outsourcing, the employees are hired by the employment companies and inducted to serve their clients.

What the HR companies offer in Pakistan?

  • Complete hiring solutions – job advertisements, screening of applications, interviewing, recruitment, selection, development, and retention
  • Payroll management – salaries, bonuses, and financial emoluments of the employees
  • Substantial talent acquisition and subsequent management
  • Firing through exit interviews
  • Conducting appraisal interviews
  • Addressing employees’ legal and work-related issues
  • Managing the third party contracts

Services rendered by transnational HR and employment agencies

The world’s biggest employment agencies and HR outsourcing groups assume full responsibility for the employees and employment-related tasks of their client companies.

  • Interviewing the international job candidates
  • Recruiting and selecting the multinational talent
  • Training and inducing the employees at international localities
  • Managing the payrolls and other financial matters
  • Addressing the procedures for issuance of work visas
  • Affording the employees as expatriates
  • Managing international transfers and postings
  • Organizing employees events
  • Supervising employees official tours

Why do companies go for outsourcing of HR?

The concept of modern HR started from its raw form in 1952. The digitization pushed it to the contemporary models. HR outsourcing though was open to discussion in the 1980s, but its mature form appeared on the canvas of the corporate world during the late 1990s. With the passage of time, the big conglomerates sensed the real benefits of HR outsourcing.

Here is the list of reasons why progressive companies go for HR outsourcing.

  • Low cost of talent acquisition and hiring
  • No direct liability of the employees
  • Saving of money, time, and energy
  • Restricted obligations of the companies
  • More responsibilities of the employment agencies
  • Achievement of revenue-focused approach
  • Relieving from the headache of HR processes
  • Acquisition of proficient human resource
  • Saving cost on addressing employees’ legal issues
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