HR Outsourcing
HR Outsourcing

Human Resource Outsourcing also known as HRO is a process in which a company utilizes the services of the third party or an external supplier to take care of its HR related functions. The work will be done by another company or employees other than the company's employees. The employees are the most important asset of an organization and the companies around the world are taking more strategic approach to manage the human resources. HR responsibilities include functions such as payroll, benefits, hiring and firing, updating themselves with state and federal tax laws and so on which focus on employee wellbeing in an organization.

They are outsourcing day to day functions of human resources so that they can focus on strategic HR issues which has a huge impact on corporate performance and value of shareholders. HR related activities and functions that are not critical and confidential are usually outsourced. By outsourcing, the organization can enhance its own competitive advantage and get benefitted in the form of excellent quality, reliable supply, and all time low price.

The organization may outsource a few or all of its human resource activities to a single or combination of service providers. Some of the non-core activities and functions that are outsourced are recruitment and selection, payroll and compensation management, staff training, employee benefits and service, job evaluation etc. which are basically routine in nature and are effort intensive activities. These repetitive work are turned over to a third party specialist as they are able to deliver excellent results which will result in significant savings in cost and effort.

HR is really critical and an essential partner in developing and executing organizational strategy. Outsourcing of HR functions provides cutting edge over their human resource strategies and it helps an organization to gain cost and time efficiencies by improving services to their employees.