HR Outsourcing is the new multifunctional and mobile secretary of the decade. The disposal of administrative workload upon human resource outsourcing companies, has allowed businesses to prioritize their agenda and thrive in several ways. Corporations that find in-house HR services costly and time-consuming often opt for HR outsourcing as a rather cost-effective alternative. Today's HR firms provide a variety of services, often associated with certain specialized segments of the industry. These services generally fall into four well-divided categories:
Professional Employer Organization (PEO): this type of HR Outsourcing solution empowers the organization to "co-employ" the given business, as far as HR services are concerned. PEOs then assume full legal responsibility for the company's employees, coordinating the recruitment process and deciding on salary-related issues.
Business Process Outsourcing (BPO): an organization involved practically in all aspects of outsourcing, providing technological backup for existing systems. In the human resource outsourcing area, PBOs are busy implementing the latest computerized solutions.
Application Service Providers (ASP): ASPs develop and rent HR software to HR outsourcing companies. Human resource companies' outsourcing professionals often customize the software to fit specific needs, such as payroll and benefits management.
E-service: a collective name encompassing all HR outsourcing companies that provide web-based solutions.
Managers are generally pleased to outsource certain key HR functions to a third party. The top-ranking service on this list is the organization of a company’s regulatory compliance. The legal administrative procedure associated with federal and state labor laws, tax filings and corporate regulations provide the most amount of seemingly complicated paperwork and require the professional involvement of competent HR outsourcing consultants. Staff management related issues march in its footsteps, proudly occupying the second base for most often outsourced HR services. These include the handling of payrolls, hiring and firing and benefit plans among others. Retirement planning and pension administration also form a significant bite of the industry's cake of services.
The question may rightfully arise: if the power of human resource outsourcing services is so magnetic, who can actually afford to turn his /her back on its beneficial operations? Well, there are always the scrupulous self-made businessmen, who only believe in harvesting the crops of their own painstaking efforts. On the other hand certain corporations simply prefer to operate the HR department in-house, often in order to maintain authority or for the obvious advantages derived from proximity.
The HR Outsourcing Buyers' Guide provides information on how to choose an HR outsourcing company most suitable for your personalized needs. Furthermore, the Buyers' Guide provides HR outsourcing services terminology, a checklist offering useful guidelines, and a selection of interesting articles related to the topic of HR outsourcing.