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What is HR outsourcing?

Personnel outsourcing: what is it and why does the company need it?

Working with staff is one of the most important stages of building a business properly and efficiently. In order for a business machine to work at full capacity and not fail, its mechanisms must be debugged not only externally, but primarily internally. Those entrepreneurs who consider personnel accounting to be secondary and unimportant are very wrong, but the realization of such a mistake can cost the company a lot and come too late. The result – all sorts of inspections, labor disputes, lawsuits, claims from regulatory authorities. That is why the issue of proper organization of personnel accounting should be taken seriously and start working on it as soon as possible.

There are two options for the organization of human resources for the employer: to seek funding and hire a staff of specialists, and then to establish a relationship between them and other departments of the company or to prefer a service such as personnel outsourcing.
What is human resources outsourcing?
Outsourcing of personnel services is the control of attracting and accounting for personnel at the enterprise. In fact, it is the transfer of the function of personnel administration from the personnel department to a company specializing in the provision of such services.

What services are provided on the terms of personnel outsourcing?

  • keeping personnel records (keeping personal files of employees, accounting for the movement of employment records, filling them, accounting for working
  • hours and work with staffing, development of application templates, etc.);
  • restoration of personnel accounting (streamlining and restoration of personnel documentation (orders, applications, filling in accounting books) for the period when the accounting was not conducted at all or was conducted incorrectly);
  • registration of employment (employment contract), transfer to another position and termination of employment;
  • work on selection and evaluation of personnel most suitable for the enterprise;
  • control of compliance of job titles with the Classifier of Professions;
  • advising management on any personnel issues.
The list of personnel outsourcing services above is not exhaustive and may be expanded or narrowed by agreement with the client.

What are the advantages of personnel outsourcing?

  • reduction of risks in the field of labor relations;
  • maximum efficiency of work with personnel due to the professionalism of the specialists of the outsourcing company and their objectivity (they are not employees of the company, have no personal contacts with employees and work impartially);
  • no need to expand the staff by creating a human resources department;
  • reduction of the company’s costs for salaries and social contributions to the entire department (prices for personnel accounting services depend on the chosen set of services, however, the cost is always lower than the content of the entire team);
  • clearly defined tasks assigned to the involved specialists and responsibility for timely and high-quality performance of the assigned functions according to the cooperation agreement.
Summing up, we note that outsourcing is a fairly new service, however, which has already proven itself and allowed hundreds of entrepreneurs to successfully develop their business, forming and controlling effective staff with minimal costs and maximum productivity.

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