A major reason for outsourcing HR Services like hiring to recruitment agency or mobility services to relocation services provider is done mostly for cutting costs. Trying to save on expenses is certainly a valid motive, more so in these days of fierce competition. But, there are a few points worth thinking about which can make a huge impact, in terms of quality, costs and efficiency of the HR Services delivery.
Does it make business sense?
Focusing too much (or rather solely on) reducing costs may not deliver expected results. At least, it does not work out that way always. Surveys and research by Institute of Management and Administration and CIPD* have come up with startling results.
And, things can go even more horribly wrong in extreme cases. Most of the HR professionals have surely heard of the huge $1.2 billion legal battle that Queensland government who outsourced payroll function to IBM had to fight.
How to avoid such unsavory incidents? What is the best way forward to achieve both HR goals and cost reduction?Some interesting thoughtsare here.
HCMC strategy for outsourcing HR services:
Ranked as one among the top recruitment agencies and HR Services providers in Dubai, we speak from practical experience. Outsourcing of human resource services is a momentous
You can be sure that thisoutsourcing strategy helps you to reach business goals and also enjoy enhanced organization excellence in the long term.
Now, let’s get back to costs and savings. The costs are not merely recruitment agency’s fee. A well planned and correctly executed strategy will deliver valuable benefits. Take hiring for example. Suppose the agency locates the right man for the right job. With their benchmarking knowledge, expert recruiters can help you to hire the employee at the right salary. That employee will remain with you longer and achieves your business goals. Longer retention of the talent itself is one of the big savings.
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*Institute of Management and Administration- (2012) Cost Reduction and Control Best Practices: The Best Ways for a Financial Manager to Save Money. Hoboken: John Wiley & Sons; CIPD (2009) HR outsourcing and the HR function: Threat or opportunity? London: Chartered Institute of Personnel and Development