Hr Assignment.docx

Introduction What is meant by Outsourcing HR department? This means to obtain HR services from qualified contractor who can get the job done while saving the company man power, money and time. It enables the company to focus on strategic activities to achieve the company bottom-line instead of becoming tangled with HR issues including payroll management, taxes, benefit administration, legal services, Staffing, Staff training and development, employee health management. Advantage of Outsourcing human resource department Risk Management HR outsourcing firm help business minimize risk associated with employment, labor laws and change in regulations since it is difficult for employer to remain updated with regulations that affect work place. On the other hand, HR contractors can handle legal issues and other complexities e.g. HR policies, procedures and practices, Compliance laws, labor laws, legal talks etc. since they employ HR professionals whose purpose is to stay abreast with laws and regulations. HR firms also maintain and audit company on policies, procedures and practices to ensure companies and employees best interest are remain protected. Cost Saving HR Contractors reduce cost of maintaining non-revenue generating back office expenses. A full HR department require additional office space, high trained and experienced staff. For example, the company may find it cost efficient to outsource HR functions rather than expanding the office space to accommodate HR department and associated costs. Efficiency HR contactors tend to use advanced HR technology which help streamline important HR functions such as payroll management, benefit administration and compliance management. This will save time and paperwork’s to management hence improve efficiency and effectiveness and allow focus on key strategic issues for business prosperity. Staff Development Outsourcing HR function help business manage employee performance and development. HR contractors implement performance management plans to ensure employees comply with company’s policies and procedures effectively to business objectives. The HR contractors will use different techniques including performance appraisal to assess and monitor employee performance and report to management for actions.

Conclusion It is of the best interest for the company not to outsource the whole of HR function. However, the company can outsource functions that are regular and take most of time especially those deal with numbers, data, reporting etc. but employment development should stay within the company on personal level since line manager are in better positions to understand the need of his/her staff within the department. Apart from that, contractors do not have close relationship with employees or employers since they are not physically present. It is important to have actual person in HR department who can bridge the gap between employees and employers. Employees need some one they can talk to or go to when there are payroll faults, fight among employees, crisis in employ’s life that may affect job attendance and overall performance. Therefore, having a well-informed and immediate HR Presence is very important in an organization.