HR-Outsourcing (HRO)

The HR industry is experiencing a transformation. Faced with new technologies and shifting employee expectations, organizations are looking beyond the functional role of HR and developing strategies to increase its impact on business performance and growth. But the role of “strategic business partner” comes with its challenges—and managing all of the elements needed to succeed can be a strain on even the largest of HR teams. HR professionals are expected to deliver a streamlined and attractive talent management process; find leading candidates; fulfill each generation of employees; predict their organizations’ future labor supply and demand; motivate employees to perform at their best; and manage the administrative duties related to all of these tasks. And through it all, they have to ensure that employees at every level understand and execute the workforce strategy. That is why it has become increasingly critical for HR to build valuable partnerships with product vendors and service providers who can automate key processes, deliver the latest technologies, and ultimately, free up time that can be better spent strategizing which is called HRO.

What is Human Resources Outsourcing (HRO)

With the advent of time BPO – Business Process Outsourcing comes to us very frequently where companies are looking after better 3rd party service at affordable prices to meet the upcoming global competitions. In HR it is called HRO or HR-Outsourcing, it is the process of sub-contracting human resources functions to an external supplier. Outsourcing HR functions may create greater efficiency within human resources systems.

Your HR Outsourcing Companies will consider your  requirements and expectations, and come up with a proposed action plan and will provide you with service solutions that fit your  needs.

With HR Outsourcing, you will be benefited in experience and know-how, delivered to you from your offices or directly on your premises.

How they work

Complete HR delivers tailor made HR solutions to help your  business reach its goals. They can work for you on an hourly, daily or fixed fee basis – on or off site.

• Full outsource – they take care of all your HR needs
• Semi outsource – they take care of some of your HR needs
• Project – they deliver a HR project from start to finish
• Retainer – they provide HR expertise and solutions on a regular basis for an annual fee
• Ad hoc – they are available when required on a daily basis

What services they can offer:

In Advanced human resources practices companies enjoy the whole HR process from 3rd party who has gained a professional excellence on that particular service(s). Advance technology are being utilized by outsourcing providers to help streamline important HR functions. Alternatively, they can tailor-make Your offering specifically to your  needs including the following services:

1. Complete HR Solutions;
2. Talent Acquisition & Management;
3. Survey & OD;
4. Payroll & Automation;
5. Learning & Training;
6. KPI & KSA based performance Management System;
7. Administration of the employment lifecycle
8. Performance management
9. Rewards and benefits;
10. Meeting the employment legislation requirements including Income Tax & LabYour dispute;
11. Policy & SOP development;
12. Standardization & Certification; and
13. Employee Matrix & Research.
14. Event Management
15. HRIS –Automation
16. Referral Checking
17. Complete HR Solution

At Complete HR Services companies deliver tailor-made HR solutions to help your  business reach its goals better and faster. Your HR solutions are easy to understand and put the ambitions of your business first – let us help your business thrive.

They build and manage a complete infrastructure of processes, policies, procedures, and employee communications, all bundled with your technology for a complete, efficient, tactical HR, benefits & payroll infrastructure that can scale with your business. And because they build it custom for your business, you can take it over when you’re ready.

They can work for you on an hourly, daily or fixed fee basis. View Your full range of HR  Service.

1. Talent Acquisition & Management;

Executive search (informally called headhunting) is a specialized recruitment service which organizations pay to seek out and recruit highly qualified candidates for senior-level and executive jobs (e.g., President, Vice-president, CEO). Headhunters may also seek out and recruit other highly specialized and/or skilled positions in organizations for which there is strong competition in the job market for the top talent, such as senior data analysts or computer programmers. The method usually involves commissioning a third-party organization, typically an executive search firm, but possibly a standalone consultant or consulting firm, to research the availability of suitable qualified candidates working for competitors or related businesses or organizations. 

Talent Acquisition refers to the job and process of sourcing, attracting, recruiting, interviewing, and on-boarding employees to an organization. It is a function of corporate recruiting and is usually housed within the Human Resources department.

Candidate sourcing requires very specific knowledge, a lot of experience and accomplished sourcing skills - which is different than recruiting. That is why they say recruiters and headhunters are not sources. 

Typically, the main focus of a recruiter does not include actively searching for candidates. Recruiters consult internally with the line managers, define job descriptions, select candidates, lead interviews, and manage offers and finally onboard new hires. This means recruiters should be highly skilled in communications, consulting and selection. 

1. Survey & OD;

Survey give the internal picture of any organization – a good survey can suggest where, when and what strategic measure should be taken for the best benefit of your organization. A good survey report can suggest when, where and what strategic measures should be taken by the company.

In organizational development (OD), employee research involves the use of surveys, focus groups and other data-gathering methods to find out the attitudes, opinions and feelings of members of an organization.

Their employee research expertise stretches across every stage of the employee lifecycle, helping you tailor your employer brand to attract the best talent, measure employee engagement, understand what is driving it, and identify the causes of employee turnover to help retain key employees. With Your proven “Say, Stay, Strive” model and best-in-class technology, they will guide you through specific areas of focus to improve employee engagement and create an impact on customer experience and retention.

Following examples are given:

1. Wages & Salary Survey
2. Employee Engagement Survey
3. Employee Morale Survey
4. Employee Attitude etc

OD & Career Management

In Organizational Development (OD) the study of Career development looks at:

• how individuals manage your careers within and between organizations and,
• how organizations structure the career progress of your members, it can also be tied into succession planning within most of the organizations.

In today's world, more employers are looking for ways to facilitate career development and encourage your employees to drive your own careers.

They can assess your current organizational issues and redesign your processes for efficiency gains. The outcome will accelerate slow processes within your organization, eliminate inefficiencies, improve productivity and control costs. They shall map current processes, identify constraints and review work issues. They shall do a root cause analysis, process redesign, improvement and implementation options and preparation of the implementation plan.

1. Payroll & Automation;

HR Outsourcing companies are offering Payroll service where they take the responsibility of calculating payroll, disbursing and maintain confidentiality at their end.  Payroll automation can be integrated into the company’s Enterprise Resource Planning (ERP) system that provides an overall view of the company’s or community’s finances; in addition to payroll, it can manage employees details, job history, personal information and asset management

Payroll Management consists of several stages and procedures that require expertise in financial administration, such as employment contract management. Payroll management performs the following tasks:

• Calculating and paying wages, settlement of tax withholdings
• Delivery of wage calculations and certificates to the employees
• Compiling statistics for different authorities, and for the purposes of improving activities
• Drawing up employment contracts
• Providing regulatory reports to the tax agencies and insurance companies
• Calculating annual holidays
• Managing deductions for employee benefits
• The travel costs and travel invoices from the employees are usually processed together with payroll.

1. Learning & Training;

Learning and development, often called training and development, forms part of an organization’s talent management strategy and is designed to align group and individual goals and performance with the organization’s overall vision and goals.

On a practical level, individuals responsible for learning and development must identify skills gaps among groups and teams (often through SMART objectives, one-to-one interviews and performance appraisal and then finding suitable training to fill these gaps. Your HR outsource team can design training programme for following levels of individual through Assessing Training Needs (ATN):

1. KPI & KSA based performance Management System;

A good out sourcing company can design a effective performance Management system where a standard performance measuring and reward system will be reflected.  

There's constant pressure to achieve performance targets, to reach higher performance levels, and to ensure that people's work supports and furthers the organization's goals. Performance management is the process used to manage this performance. This is where key performance indicators come into play, and they apply both at the organizational and individual levels. At an organizational level, a Key Performance Indicator (KPI) is a quantifiable metric that reflects how well an organization is achieving its stated goals and objectives. Your expert team can assist to fix realistic KPI for your concerned departments and evaluate performance basing on it.

Performance management is a shared understanding about how individuals contribute to an organization's goals. An effective performance management and appraisals process focuses on aligning your workforce, building competencies, improving employee performance and development, and driving better business results.

1. Planning and Expectation Setting
   2. Monitoring
   3. Development and Improvement
   4. Periodic Rating
   5. Rewards and Compensation

Performance measurement is a way of assessing progress towards achieving predetermined goals. Performance management is building on that process, adding the relevant communication and action on the progress achieved against these predetermined goals.

So it is a consolidated goal setting, performance appraisal, and development into a single, common system, the aim of which is to ensure that the employee’s performance is supporting the company’s strategic goals.

1. Administration of the employment lifecycle : g. employment contract development, onboarding, exit interviews;

Managed HR services that support your organization throughout the entire employee life cycle. From recruitment through alumni management, their talented HR professionals guide you through every step of the employee administration process. They provide services to help your  organization manage the complete life cycle of your  employees. Your highly skilled experts, along with leading software, bring efficient, affordable processes for your  HR needs.

Managed HR services that support your organization throughout the entire employee life cycle. From recruitment through alumni management, their talented HR professionals guide you through every step of the employee administration process.

They provide services to help your organization manage the complete life cycle of your employees. Your highly skilled experts, along with leading software, bring efficient, affordable processes for your HR needs, as follows:

• Recruiting: Searching for, filtering, and selecting prospective employees to interview
• Onboarding: Hiring employees, providing orientation, and ensuring that they have access to applications, systems, and other requirements for your jobs
• Benefits Administration: Establishing, maintaining, and managing benefits for employees, including medical, life, and disability insurance; pension plans; retirement accounts; stock options; time off for vacation, illness, and maternity
• Employee Development: Providing training to help employees learn new skills, and retaining high-performing employees
• Employee Relations: Facilitating communication bettheyen employees and managers, including consultation on employee rights and responsibilities, resolution strategies for workplace issues, and explanation of organization policies and procedures
• Organizational Development: Improving organizational performance and growth through continuous analysis, planning, implementation, and evaluation of processes, departments, and resources
• Performance Management: Establishing processes for managers to evaluate employee performance, including setting goals, evaluating results and accomplishments, communicating expectations, and resolving performance gaps
• Compensation Administration: Planning and managing direct and indirect compensation for employees, including salary, bonuses, incentives, and time off
• Termination: Transitioning employees out of the organization through resignation, firing, or retirement, including removal from organization systems, exit interviews, and relevant benefits transitions
• Alumni Management: Maintaining contact with former employees for business development, rehiring, and knowledge networking

1. Rewards and benefits;

They can develop flexible, fair reward programs that attract, retain and engage a diverse workforce and encourage them to behave in line with your company culture and goals. They optimize your pay spend by ensuring you’re not under or over paying for any role. And they develop career frameworks to structure your rewards and retain your best people

They offer three ways to access Your reward insights:

Pay data – They have a portfolio of self-service reward tools to suit your  needs and budget. Whatever option you choose, they put it all Your data into context for you and present it in a clear and compelling way.

Reward services – They package Your insight and trademark methods together to give you proven, consistent ways to address your reward and job evaluation needs.

Consulting solutions – Your consultants partner with you to understand your organization, your challenges and your opportunities in order to create the right reward solutions to help you achieve your strategy.

1. Employment legislation requirements: including civil law, Income Tax & Labour dispute;

HR outsourcing companies can provide service where any legislative issue arises whether it is a labour law issue or a contact or agreement, or even if it a civil law or Tax issues.

Human Resource Management is a highly dynamic field that has advanced from its early days when it was simply personnel management. Today more than ever, it is affected by a huge number of forces from demographic shift through to legislative amendments and technological innovation. In fact, regulations and laws govern all aspects of human resource management—recruitment, placement, development, and compensation.

Here are some of the clauses that need to be present in an employment contract of any company while hiring a new employee-

• Specified date of joining
• Specific post assigned to the employee
• Total amount of compensation that the employee is eligible for each month.
• The tax regulations to which the employee will be subject to
• Other benefits that may be enjoyed by the employee, including number of paid leaves permitted throughout the year, etc.
• Agreement of confidentiality of the company’s information
• A clause of “non-conflict” which specifies that the employee shall not act in conflict with those terms and agreements.
• An indemnity clause against any suit for damages or penalties , etc. to which the company or firm are subject to, arising out of breach of any agreement to which the employee was a party.
• Terms regarding disclosure and exclusivity of information.
• Term of employment of that employee after which his term shall be revietheyd based on his/her performance and the causes that may lead to premature termination of the employee.

1. Policy & SOP development;

They will develop and package your  HR Management policies into a sound HR Manual, Staff Handbook, whatever you call it; and implement it through expert processes to cultivate your  much desired behavior and organizational culture. Productive culture of course.

Why policies are important

1. Keep the organization in compliance with legislation and provide protection against employment claims
2. Document and implement best practices appropriate to the organization
3. Support consistent treatment of staff, fairness and transparency
4. Help management to make decisions that are consistent, uniform and predictable
5. Protect individuals and the organization from the pressures of expediency

1. Standardization - Certification & Compliance audit:

One of the main objectives of standardization is usually that everybody adheres to the same standards, i.e. the same procedures or product specifications. This may ease logistical procedures, facilitate trade, prevent consumer deception and improve quality.

Certification is always done by a third party. The verification is done and the assurance is provided by a party without direct interest in the economic relationship between the supplier and buyer. An internal control is a first-party verification. When a buyer verifies if the supplier adheres to a standard, it is a second-party verification.

The current global business environment is motivating organizations to consider the full social and ethical impacts of your activities.

 Companies that prove a responsible approach to social and ethical issues will gain a vital competitive edge and build confidence in its clients, investors, local communities and consumers. 

One of the main objectives of standardization is usually that everybody adheres to the same standards, i.e. the same procedures or product specifications. This may ease logistical procedures, facilitate trade, prevent consumer deception and improve quality

Certification is none other than a strong-useful tool to add credibility, by demonstrating that your establishment for product or service meets the expectations of your customers. For some industries, certification is a legal or contractual requirement especially in Textile, RMG, Food and Leather etc.

HR Outsourcing companies ensures guaranteed support for following certification for any establishment with requires expertise of the industry at a very affordable price. They can help you for achieving following certification and standard – Social & Environmental Standard & Certification

1. Global Standard & Certification
2. Buyer Standard/ Technical Audit
3. ISO Certification

1. Employee Matrix & Research.

A HR Matrix is a toll to identify the health of any organization. HRO companies help to get the authentic data and process with parameters to deliver the insight of the company. Based on the data and analysis of that data companies can take major strategic decision considering challenges and opportunities for upcoming days.  

A Matrix is a table that displays people's proficiency in specified skills and knowledge, as well as your interest in working on assignments using these skills and knowledge. ... At the intersection of the rows and columns, you identify the level of each person's particular skills, knowledge, and interests.

Advantages of Matrix Structures. Because matrix structures retain an organization's functional structure, they allow for the rapid creation of efficient large-scale, project structures that employ many members of the organization's functional structure but without disrupting or destroying the structure in the process.

1. Event Management

HRO companies extends their services for event management service along with. Event management is the application of project management to the creation and development of large-scale events such as AGMs, Seminars, conferences, ceremonies, formal parties, concerts, or conventions. Their event management team are ready to give you the best support to organize any kind of such event in your budget. You can share the ideas and budget they will provide required world-class services to make the event professionally organized and remarkably successful one.

1. HRIS –HR Automation

HR Outsourcing companies now a days provide good Human Resources Information System (HRIS) which works as process flow along with policy implementation process.

HRIS has been offering one stop HR solution for small, medium and large scale business enterprises. Green HR can help you out by reducing paper work, ensure greater compliance improve over sight, manage performance data and boost efficiency of the organization.

They take care of your  HR process while you take care of your  employees be it employee on boarding, attendance management, performance appraisal or ensuring payroll and benefits.

They produce right on time data and reporting for the management with accuracy and authenticity.

1. Referral Checking

Employee referral is an internal recruitment method employed by organizations to identify potential candidates from your existing employees' social networks. An employee referral scheme encourages a company's existing employees to select and recruit the suitable candidates from your social networks.

Few business owners would make an important hire without a reference or letter of recommendation. But it’s becoming much more difficult to gauge how forthright those recommendations are, especially if there’s reason to suspect a candidate might have a checkered work history.

Given the fear of litigation, caution is understandable on the part of companies with policies that limit what managers can say about current or former employees in letters of recommendation. In fact, some companies will only provide a candidate’s dates of employment as a matter of policy. Friends and family members asked to serve as references are just that – friends and family, with a vested interest in talking up the candidate.

Who are providing these services:

Worldwide hundreds of HR outsourcing companies are offering Business Process Outsourcing (BPO) or Human Resources Outsourcing (HRO) services. In Bangladesh few renowned HRO service providers are rendering their service very successfully since long  – among them few name are like- HR-Houtsources, Monowar Associates, Pro-edge Associates, HR Connections, HR Services, Consumark, Pro-staffers LLC, Eshna Consulting Team Limited, Renaissance Consultants Ltd., E-Zone Consulting, Enroute, Yes private Ltd., Grown Excel, MyJobs and so on. 

Depending on the service type, capacity and specialization the charges are different from one HRO to another. You can visit their website for the list of the service they are providing.

For your knowledge, internationally renowned 5 best HRO companies name have been furnished here with their clients’ name and HRO services.

1. HRO service providers name: Accenture HR Services:

Service Taking Companies: BT (Second Generation), Best Buy, Sandvik, Transportation and Security Administration, NewPage, Telecom Italia.

HRO Services: Recruitment, workforce performance, learning, compensation and benefits, payroll, and employee services

1. HRO service providers name: ACS (Global HR Solutions) :

Service Taking Companies: Chubb & Son, Delta Air Lines, Goodyear, General Motors Europe, Motorola

HRO Services: Benefits administration, health and welfare, compensation administration, consulting, employee contact center, global mobility, HR technology, payroll administration, workforce development 

1. HRO service providers name: Adecco (Global HR Solutions):

Service Taking Companies: IBM, General Motors, Goodyear, and Microsoft. 

HRO Services: Payroll, recruiting, staffing, training, HRIS, employee service center, EAP

1. HRO service providers name: Administaff:

Service Taking Companies: Fort Worth National Bank, M3 Logistics, Inc., BI3 Solutions

HRO Services: Employment administration, benefits management, retirement services, business services, compliance, employer liability management, recruitment, training and development 

1. HRO service providers name: ADP (Employer Services):

Service Taking Companies: Blue Cross Blue Shield of Massachusetts, Apple Vacations, CarMax

HRO Services: Payroll, benefits administration, HR information management, HR administration, self-service, data management, performance management, compensation management, applicant management

Conclusion:

 HRO (Human Resources Outsourcing) companies are worked as your Virtual HR Department when you don’t have professional HR team – they can serve for you from their back office. You can outsource any or all your HR service desk to HRO companies from Payroll, benefits administration, HR information management, HR administration, self-service, data management, performance management, compensation management, applicant management, benefits management, retirement services, business services, compliance, employer liability management, recruitment, training and development, health and welfare, consulting, employee contact center, global mobility, HR technology, workforce development, labour issues  etc. They would ensure the best in class services by their own experience professionals and HRIS automation services.

Human resource management is an issue for all employers, irrespective of size or specialization. HR Outsourcing companies can be your partner to ensure that matters related to your most important asset- your people in a timely and effective manner.

HR Outsourcing companies can help you through their HR-Outsourcing services. You can choose to outsource your entire HR activity from HR Planning and to separation through payroll & performance management along with Management Development programs or any one of them.