Outsourcing your human resources services
Human resource services, or HR services, help you track and manage all aspects of your company's personnel needs. While many bigger companies have in-house human resource departments, HR outsourcing services can be more cost-effective than hiring full-time staff. Small business HR services are a prime example; if you own a small business, chances are you only need help on an occasional or limited basis.
The range of services provided by human resource firms includes HR consulting, recruiting and payroll processing. Understanding the role of each of these HR branches is the first step toward determining which services your business needs, and which it doesn't.
An Overview of HR Services
Human resource services are primarily used to keep detailed records of each person's employment history at your company, including date of hire and termination, performance, and use of vacation time and sick leave. However, there are also other, more specialized services available.
Human resource consulting services help you build ideal-candidate profiles for specific vacancies within your company, whether at the entry, management or executive level. Typically, these firms also offer recruiting services to identify and interview individuals who fit those profiles, and recommend the best candidate to hire for the position.
Payroll processing is one of the more commonly used branches of HR outsourcing services. These companies handle your company's employee compensation needs by administering salaries, benefits, bonuses and taxes on your behalf.
The Benefits of HR Shared Services
The concept of HR shared services is of particular value to bigger businesses. Basically, it encompasses a streamlining and integration of disparate parts of a business operation into a single centralized department. In a shared-services model, all the administrative elements of a company share resources and are grouped in a single location, rather than functioning independently in different locations, resulting in more cooperative and cohesive operations. A typical shared-services system includes human resources as well as payroll, accounting, finance and purchasing.
By taking a progressive approach to solving your company's human resource needs, you can save money and boost your organizational efficiency. You'll also free up capital and resources to invest in the continued growth and success of your venture.