Human Resource Outsourcing

Emerging HR outsourcing trends

More and more businesses are taking advantage of today's growing digital infrastructure to outsource various business processes. Delegating specific tasks to a third party allows them to focus better on core business functions, reduce expenses, and save time while availing the services and expertise of seasoned industry professionals. These days, one of the most popular departments that organisations are opting to outsource is the human resources (HR) department, and we're going to take a closer look at popular HR outsourcing trends and their associated benefits.

HR departments are usually weighed down by excessive paperwork, which causes bottlenecks in day-to-day functions. Outsourcing paperwork-based menial tasks speeds up processes and allows your in-house HR staff to pay more attention to cognitive, decisive human element of their duties. The most popular outsourced HR tasks include:

  • Benefits administration
  • Payroll
  • Compliance
  • Employer of record (EOR) functions
  • HR support systems

Let's explore each of these HR outsourcing trends in detail.

  • Benefits administration: Job benefits go a long way towards retaining employees, but not all employees are clear on the benefits they can avail. It's up to the HR to help employees better understand and clarify about the perks available to them through suitable benefits administration processes. Outsourcing the management of your business employee benefits programme is a great way to lighten the load on the HR team. It will also provide the workforce with more benefits and professional support. Keeping your employees happy is an excellent way to boost retention and save on hiring and training new talent.
  • Payroll management: End-to-end payroll outsourcing solutions are growing in popularity, especially as large MNCs feel the drain on time and resources that come with managing their complex payroll systems. In such a scenario, a comprehensive payroll administration service provider takes over all related processes, including the issuance of tax forms, management of leave requests, detailed reporting, integration of timesheets and attendance systems, and a lot more. Large corporations with several offices worldwide benefit from outsourcing their multi-country payrolls to ensure that their vast workforce is paid on time, in the appropriate currency, and in accordance withcountry-specific tax laws. Another payroll-related benefit of HR outsourcing is consolidating the organisation's payroll activities into an integrated dashboard to securely manage processes and ensure transparency. Engage the services of a competent outsourcing solution to enhance the payroll process.
  • Compliance: Ensuring compliance with various taxation laws, as well as state, federal, and legal requirements, is a major responsibility of the HR and the one that requires constant vigilance to avoid getting embroiled in legal hassles. Managing the necessary, legally accurate internal documents in a clear and consistent manner is extremely time and resource intensive. The sensitive nature of these processes means that organisations are hesitant to outsource compliance-related tasks. Modern HR outsourcing applications and services take these difficulties into account and employ automated systems to streamline these processes. These platforms save time and effort by regularly updating and adhering to changing compliance requirements.
  • EOR functions: EOR refers to a third-party organisation that acts as an intermediary between an organisation and its employees in an HR outsourcing model. An EOR takes over all the employment responsibilities and documentation, including processing payments, performing background checks on new employees, and filing taxes.
  • HR support systems: Aside from the core HR processes mentioned above, outsourcing various HR support systems can be advantageous to your in-house team. These include employee performance management, checking in with other teams such as recruitment and marketing, risk assessment, onboarding new employees, and overseeing exit procedures. Handing these responsibilities over to an experienced HR services provider enables your in-house HR team to pay more attention to their primary functions and keep processes running smoothly.

For organisations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed organisational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like living organisms will be imperative for business excellence. A comprehensive yet modular suite of services is doing precisely that. Equipping organisations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper-productivity, Live Enterprise is building connected organisations that are innovating collaboratively for the future.


How can Infosys BPM help?

The Infosys BPM suite of Human Resource Outsourcing services includes flexible and adaptable solutions to your HR woes and can take over talent sourcing, employee development, engagement, and retention duties, among other processes. Reach out to learn how your organisation can benefit from outsourcing your HR processes.


Recent Posts