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Human Resources (HR) Outsourcing
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HR outsourcing is a process that hands over certain of the HR (Human Resources) functions to an outside individual or organisation. This will usually be an independent HR specialist or an HR outsourcing consultancy. Many businesses will outsource a part or parts of their HR needs in this manner -- as with any outsourcing, this allows them to get access to specific areas of expertise without having to pay to employ full-time staff internally.
In many cases a company will outsource parts of their HR needs to external outsourcing specialists on a long-term basis. In others they may use specialists on an occasional or ad hoc basis as the need arises. The outsourcing here will depend on a variety of business factors and drivers. Commonly outsourced tasks include:
- Payroll
- Training
- Recruitment processes
- Strategic planning
In some cases a company may outsource only part of the HR function in question. It may, for example, manage its own payroll in house but may retain an external company to manage its administration. Or, it may keep all permanent recruitment in the HR department but may outsource contract/temporary recruitment to a third party.
HR outsourcing is used by both small and large companies alike. This can be a useful way of keeping costs low, buying in specific types of expertise and help and of improving the overall efficiency of a business.
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