By definition Human Resource outsourcing is the transfer or sub-contracting of the human resource function to an external provider. The outsourcing of the human resource management function can take many forms and HR outsourcing means different things to different organisations and people, as a result the delivery of HR outsourcing services incorporates a very broad offering.
For some businesses HR outsourcing just includes the outsourcing of discrete functions, such as the payroll function and ensuring the company complies with all mandatory payroll issues. For others it is having the option to get an ad-hoc HR support which might include standard templates, award advice, industrial relations advice or advice on how to terminate the employment of staff. Yet other businesses might decide to outsource the recruitment function, the training / development function or involve a consultant to provide high level support to the management team on HR matters. It is also possible to outsource the entire HR management function, whereby a 3rd party works with management to oversee the entire HR function.
The usual drivers which lead companies to outsource parts or all of the HR function include cost reduction, compliance, risk mitigation, increasing efficiency / productivity, increased flexibility or even increased professional knowledge / capacity. For larger companies it maybe the value of outsourcing a discrete administrative function to reduce costs, and allow their internal HR to look after strategic matters. While for smaller businesses it could be to take some of the pressure off the management team and deliver a professional experience to the work force. A company’s HR management needs will change as the company develops and the usually require more sophisticated HR management as they grows. For smaller businesses this is often challenge, and this is where HR outsourcing offers substantial benefit.
E.L Blue’s outsourcing offering embeds an HR professional and establishes HR programs within the business according to the company’s needs. With a professional team of subject matter experts, the embedded HR manager can draw on the teams expertise to develop a variety of HR programs that can be implemented. By offering a bespoke program, the company is able to develop various HR management capabilities in accordance to its needs, instead of implementing a one-size fits all range of activities.