Blog

HR news and updates from the E.L Blue Team

5 benefits of outsourcing your human resource management

11 Oct 2021 | HR, Human Resource Management, Human Resource Outsourcing, Organisational Development, Recruitment

There are more than 5 benefits of outsourcing your human resource management, however here are the top 5.

Scalable Functionality

Businesses change over time, sometimes they grow and other times it is necessary to ‘right’ size.  Naturally this means that the business’s human resource management capacity needs to adjust to meet these changes.   

A business may need additional HR resources to meet a sustained business requirement, or just a specific competence to complete a special project.  No matter if it is long term or not, an outsourced HR provider will supply the necessary resources when they are required.  Special capacity is applied as needed and removed when not. When done right, HR resources slip in and out of a structured HR program aligned to the business plan. 

An example of an E.L Blue case would be the restructure of a business’s compensation and benefits structure.  Our HRBP worked on a basic concept, brought in E.L Blue subject matter experts to flesh out the solution, then worked with the client on implementing and applying it to the organisation. In this case, the smaller company gets the benefit of a larger HR function, where it normally would not. 

Contemporary

Human Resource management is evolving and changing continuously.  In addition, laws, legislation and compliance requirements require continuous monitoring.  To remain up-to-date and responsive to all the changes is a full time job.  Keeping current is even a challenge for companies with a big HR teams, and nearly impossible for smaller companies handling their own HR. 

A good outsourced HR provider can not only ensure companies are compliant, but also put in place best practice HR programs that allow companies to get the best performance from their teams.   

A recent HR program run by E.L Blue included establishing a casual to full time transition pathway which not only met legal requirements, but also offered an attractive employer value proposition to enhance retention. 

Efficiency

Exploring and implementing new HR strategies can involve substantial research, assessment, design and tweaking.  While it is fairly straightforward to update existing policy and procedures to remain compliant, when establishing a new policy a lot more time and effort is needed. 

With substantial resources and experience, a good HR outsourcing provider will be able to draw on existing resources, knowledge and experience, and be able to fast track policy development and implementation of a tailored HR strategy. 

For a company, not only are the new policies best practice, but implementation is handled by a seasoned practitioner.  No waste of time or efforts. 

Wholistic

Human resource management forms an integral part of a business’s success.  Each of the various HR functions needs to be aligned to achieve the best outcomes possible.  While it is possible to initiate an HR program in isolation, for example a recruitment drive, without a good employer value proposition, a career development offering, attractive compensation and rewards this drive will be less effective.  Combining all the facets of HR management requires experienced and skilled professionals.  Often smaller companies do not have the management experience or time to design and execute a wholistic strategy.  At best a framework may have been established, some initiatives started, but implementation often stalls when leadership needed to move to other more urgent matters.  

An outsourced HR provider can establish an integrated program which can be rolled out in stages aligned to business requirements.  Not distracted by competing demands on time ensures initiatives are implemented completely.  Looking at the entire HR function, an outsourced HR provider can systematically build HR capabilities for the company.    

In a recent program, E.L Blue worked with the client to redefine an employer value proposition, a reward and recognition structure, a leadership and development program which was tied in to the corporate values and was incremental in supporting successful recruitment drive.

Employer Value Proposition

Employees like to work with companies that offer clear HR structures, development opportunities, compliant polices, effective appraisal systems and offer fair rewards and recognition.  A well established human resource management function provides the foundation to deliver what employees require from an employer. 

It is possible to establish these programs, but it is not set and forget, a level of responsiveness is necessary to match changes in the market. 

A good outsourced HR provider not only can establish these structures, but also maintain, monitor, adjust and ensure they meet changes of employee expectations.   The result is an advanced value proposition that supports all aspects of the business.

For a no obligation discussion how outsourcing your HR function can help your business give E.L Blue a call. 

 

el@elblue.com.au