by Raghu Nandhan | Dec 11, 2018 | Blog, Offshore Recruitment
Is outsourcing HR the best solution for your business, or should you move HR in-house? Do you have an answer to the above question if Yes then thumbs up, if No then continue reading to find out more about the two options.
HR workers manage a wide level of responsibility based on the needs of the organisation. They manage the hiring processes of recruiting and interviewing potential employees, as well as orientation and training of workers. They also manage the relationship between employee and employer, as well as completing payroll and managing benefits. HR professionals work with the leadership team to implement policy changes and to best coordinate the wider administrative functions and duties of a business. Hiring and training new employees is one of the most expensive parts of the business cycle.
One of the best ways to determine whether your business should outsource the HR department or keep it in-house starts with taking a look at the size of your company. This will give you an idea of the services and manpower needed to run HR. Next, review the pros and cons of both options by taking a deeper look into what you may gain or lose through the process. Last, research the stories of other businesses similar in size to your own and find out how outsourcing or in-house HR has worked for them.
When you first start your business, your priority is to hire people who are integral to building the product and growing the company to fill the roles that move the bottom line and grow the business. At some point, a business grows big enough that it needs people to take care of the back office operations of the company. You need someone responsible for coordinating interviews, sending offer letters, managing benefits administration, and much more.
Figure out what stage of growth your business is in:
10-50 Employees
If you’re running a new business it can be easy to believe you can do it all yourself. There are only a few people in your company. Between managing benefits, equity, salaries, time off, writing employee documents, hiring, firing, onboarding, and everything else that is going on, where will the time come to talk to investors, build the product, or do significant business development? At this stage, you should outsource most of your human resources function. Your focus should be on the people who are coming in and out, not whether they are getting their pay check on time.
50-500 Employees
You’ve raised a much larger round and you are going to be scaling your business much faster, maybe growing from 50 employees all the way up to 100-500 employees. Recruiting is probably a massive priority as you grow and you might be running into new issues when it comes to expansion and compliance.
At this point, you need a back office time. For starters, you need to have someone on board who is able to handle strategic HR projects that are meant to make the company better. These include initiatives to keep employees healthy, to ensure that they are acquiring new skills that make them more useful. These requirements are better filled in-house, since they are so specific to your company.
But there’s still a role for outsourcing. While you might feel an itch to bring everything in-house, payroll experts are costly and normally unnecessary. There’s also no need to bring basic compliance in-house. Outsourcing this or getting software to do it will save you money and time that will allow your busy HR department to focus on hiring and strategic projects.
500-1000+ Employees
Top of Form
Bottom of Form
These types of companies are not too dissimilar to medium-stage companies. The difference here is that many larger companies bring many HR functions back in-house because they consider it a competitive advantage. But even for large companies, many of the administrative HR tasks can remain outsourced. Why bog down your in-house HR team?
Keep your HR department focused on finding quality talent, tackling strategic projects, and being the liaison to the rest of your team. Allow outsourced HR and payroll providers to handle the rest.
Apart from these few other factors can also be considered before coming to a conclusion:
- What level of HR expertise/skills do you need?
When hiring a in house HR person you are getting only the skill set they bring. When using an HR firm with multiple consultants, you have access to all of the skill sets employed at the firm.
This is a key question. If you determine that you would like to hire a HR Manager with 5-10 years of experience, this is where the cost of outsourcing to an HR firm makes more sense because the cost will be a fraction of hiring an internal HR Manager.
- What are the employee-related goals for your business?
Do you want to become an “employer of choice” with a goal of attracting top talent? Do you want to create career paths for employees? Focus on employee retention? Using an outsourced HR firm with the experience of doing this type of work regularly, can help you achieve these goals more quickly. Additionally, it will provide you with some ideas you may not have thought about due to the consultants varied experiences.
- Do you need your HR person onsite every day?
With 100 plus employees, having HR onsite every day makes sense.
- How much time do you have to supervise an HR person?
Entrepreneurs rarely have time to effectively supervise. And supervising a skill set like HR, that they often know nothing about, makes it even more difficult. Working with an outside HR firm gives Leadership peace of mind knowing that skilled professionals are in place who will work proactively, advice and collaborate, versus look for frequent direction. With an outside HR firm true supervision is minimal.
- Do you want an HR professional who can provide objective advice and guidance?
When hiring someone in-house, they may not be as forthcoming with feedback that does not agree with “the boss”. The internal HR person wants to remain employed and because of this may be reluctant to share feedback that could be perceived as “not being a team-player.” An experienced HR consultant understands that one of the roles they play is to be a trusted advisor and look at situations objectively while sharing ideas and feedback that will improve the client’s workplace, support their goals and culture while also mitigating risk.
HR is an important department. But many businesses sometimes forget this. Or they forget that the people doing it are qualified to do more than monotonous tasks. Outsourcing human resources and introducing new changes within the company can be both eventful and fruitful and worth the risk taken. Finding the right consultant not only gives you a sense of satisfaction but also will reward you and your company in the long term and will provide you with long lasting benefits. Try to hire a professional that truly understand the sentiments of the company and its motives and values.
I hope this article inspired you to investigate what works best for you, your organisation and most importantly, your employees – because they are your business’s most important resources.
If you found this helpful then don’t forget to share it with your friends and colleagues.
What business functions have you considered outsourcing? Tell us in the comments section below.
Pragna provides a wide range of Recruiting and HR solutions for businesses of all sizes. Click here to discuss your HR/Recruiting needs with us.
by Raghu Nandhan | Aug 10, 2018 | Blog, Offshore Recruitment, Talent Acquisition
As you probably are aware, Outsourcing is a regularly developing industry.
Outsourcing has witnessed a massive boom over the past decades. Outsourcing has revolutionized the way business is done in almost all sectors.
Outsourcing has significant importance to not only businesses that choose to engage in said activities, but also to the citizens of any country with involvement in outsourcing. Businesses now face a growing array of factors influencing outsourcing and it is imperative that they understand the nuances of outsourcing so that they may readily adapt to a rapidly changing global economy.
While there has been a constant growth in this sector, there have also been several new trends, which have emerged and stayed for the betterment of outsourcing.
Emerging of New Technologies
Emerging technologies such as cloud computing, social media, software and automation are being used by BPOs to reduce costs and accelerate growth.
Process Automation
New technologies that have emerged over the past few years including robotic process automation (RPA). RPA with its cost savings, speed and efficiency is slowly making its way into all industries and all types of business processes. Bring on the new era of AI which has taken over RPO (Recruiting process outsourcing). This will have a major impact on how BPOs operate and lead to jobs losses.
Focus on Social Media
Companies now realize that social media is a game changer. It provides an unprecedented wealth of consumer data and feedback that can enhance a company’s ability to analyze upcoming trends and to innovate. Instead of call centers, companies now want to invest in real-time customer engagement that will allow them to gain first-hand product insights and turn issues into new products or solutions that will address future problems.
Use of Cloud Technology
The cloud technology is likely to become the path for the outsourcing. With more usage of cloud technology businesses are working efficiently. Also, it will give further impetus to these firms to deliver innovative products and services to customers depending on the latest market trends.
Higher Efficiency and Competence
The outsourcing industry is now edging towards automating process utilizing the latest software and other computer programs in the process. These technical tools will shorten the tech support to enable services and also resolve consumers’ problems on time.
Digital Transformation
Companies are adopting online services, social media marketing, email promotion, and mobile marketing greatly.
by admin | Mar 21, 2013 | Blog, Offshore Recruitment, Talent Acquisition
With technology and global business shaking hands, the current market avenues are providing a wider and better scope for exploring new talent and hidden skills. Though, the recruitment process has been ruling the business world right from its inception; there have been significant additions and alterations to the entire process.
Gone are the days when the industry requiring the human resource used to recruit their staff with those perfectly fitting into the minimum criteria range bestowed by the industries. Also, the wide number of employment opportunities coupled with minimum competition and greater vacancies at that time might have resulted in industries taking up the recruitment functions in hand.
But, time has changed since then; and so has the varied factors associated with hiring process in addition to the stiff market competition making the current condition more challenging and intricate. The rise in demand for affordable and reliable staffing partners has paved way for the emergence of offshore recruiter gaining spotlight in the current time span.
All this started with the inception Human Resource Development (HRD), with this acting as the key dealers with candidates and staffing problems has slowly changed its tracks clearing way for recruitment process outsourcing. This recruitment outsourcing feature has gradually got bifurcated into internal recruiting and offshore recruiting, with the latter attaining greater prominence worldwide.
Despite being a well-reckoned recruitment solution worldwide, it still remains as the most underestimated and unexplored features in the Indian market. But, thanks to the global connectivity and the impact of the western world and their business tactics and practical implications in our market that offshore recruiter has turned out to be a potential market player in the recruitment.
With just a few years in the area of manpower placement, this recruiting arena is regarded to bring success applause for businesses if employed in a streamlined and appropriate manner. The fact that it lends a cutting-edge outsourcing approach in the current economically demanding situation along with making you stay competitive and powerful in the exigent market atmosphere makes it highly reliable.
Some of the key salient features of offshore recruiting are –
- Highly experienced experts and professionals in the key area of industrial domain are kept on board to select the best capable and talented candidates from the lot.
- Customized and tailor-made recruiting solutions that include screening the candidate resumes from the database, interacting with the potential candidates through a step-by-step approach, etc.
- Submission of the finalized papers to the company, salary negotiation, laying systematic strategy for recruiting, etc. also fall under the functions of offshore recruiter.
- Co-ordinate pre-screening evaluation, conducting interviews, selecting the highly capable and authentic candidate as well as enabling post-screening documentation process, if any.
- Formatting the previously selected resumes as per the company standards along with checking the authenticity of the provided documents, references, etc.
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by admin | Mar 15, 2013 | Blog, Offshore Recruitment, Talent Acquisition
Human resource and recruitment are the two well-known terms of business arena that are still and will always remain in the spotlight as per far as new companies will be cropping up and the need of hiring potential candidates arises. With passing time, more and more industries are converging up and making their presence felt alongside the previously established companies, thereby further aggravating the already existing stiff business competition.
And, as far as the current market field is concerned along with the broad range hiring techniques and technological implications coming to light; this business avenue is estimated to be at its nascent stage.
One of the key significant factors allied to recruitment that was dormant until a couple of years but, is seen to possess the potential to emerge as a powerful & a vital market player over the coming years is none other than Virtual recruiter.
The business recruitment outsourcing providers and staffing partners have already crafted their niche area of excellence in this field by rendering reliable and strategic staffing solutions and recruitment campaigns. It’s time for this so-called internet recruiter to making its presence felt in an influential and potent manner through rendering hiring services at par with the in-house recruitment experts.
The key basic tools that not only enhance the process of recruiting but also simplify and contribute to work effectiveness include the availability of basic recruiting infrastructure and productivity tools; screen capture and research tools, applicant tracking, skype, etc. The factors that are responsible for appreciably boosting the role and significance of virtual recruiter are –
- Ability to search the potential candidates from an extensive talent pool of local, national as well as global candidatures with the technological features and globalization further contributing to minimize the boundaries and enhancing greater connectivity.
- Accessibility to work at any time of day and from any corner of the world with the aid of basic and well-equipped infrastructure (attaining which is not a very big deal in today’s time).
- Picking up the right candidates with relative experience, technical skills, self-motivated and potential one through thorough screening and strict interview measures as they form a valuable resource for the business growth and success.
- A virtual recruiter acts as a connecting link between the company and the candidate along with carrying out the entire recruitment process right from the pre-screening to the final selection in quick span of time.
- Acts as the most reliable and cost-effective business mantra in the current span of economic slowdown, where companies are looking for maximizing their revenues through fixing their costs/expenses to minimum.
- Being updated with the latest rules and regulations implemented in the recruitment procedures and the power to effectively execute them is what makes the internet recruiter an integral and most efficient member of the HR team.
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by admin | Feb 6, 2013 | Blog, Offshore Recruitment
Everyone reading this blog will agree with me with the fact that even though vision and passion are the two pillars on which every company sets its business but the major asset that acts as a driving force to make your company emerge with flying colors is the human capital.
Many experienced professionals have already claimed and are time and out shedding light on the role played by manpower in yielding the apt business goals and statistics. Well, by far all of you must have come across the term ‘recruitment process outsourcing’ (generally abbreviated as RPO), which has grabbed the eyeballs of the corporate world right from its advent into the area of management and HR business.
As per the current scenario, most of the companies are finding it difficult to simultaneously handle the business development processes and the recruiting functions due to time constrain and accessibility to various allied resources that are necessary to construct a relevant candidate profile or fall short of the accurate hiring space with respect to their brand identity.
And, this is where HR companies or recruiting consulting agencies have cashed in the most along with building a strong bond with the business companies by redemption of valuable and trustworthy employer outsourcing services or recruiting process.
One should always keep in mind to go through the overall profile of the external recruitment service provider before zeroing down on the best recruitment process outsourcing firm because the task in question is to find the apt candidate for your company. And, choosing out the recruitment company whose prime objective and sole aim revolves around providing a strategic and professional outsourcing solutions by hiring the best talent from the lot and managing each level of recruitment in a streamlined and effective way.
The common or by-default set services and features catered by any RPO agency should include an extensive range of broad spectrum hiring solutions including the latest technological skills, recruitment software, years of experience and knowledge in the related field and various essential tools and processes.
While, the best part is that the client company is free to choose from a wide list of recruitment process outsourcing services that include complete RPO solutions, only sourcing services, partial RPO approaches, etc. to name a few.
by admin | Nov 30, 2010 | Blog, Offshore Recruitment
It’s been sometime since I wrote Pragna blogs. I got little busy working on some new product ideas. However its been an exciting time here at Pragna where we have just launched new products. The economy has improved and new jobs are trickling in… But finding the “best” candidates for your job is still quite hard. Though there are new social technologies to assist hiring in the past few years; the hiring consultancies and commissions have not quite changed.
Tired of high recruiting fees and commissions?
The average commission rates in the recruiting industry are 20% of the salary and that adds up to quite a large amount for a handful of hires. In my view such high placement fees and difficulty in hiring right candidates is resulting lost opportunities in putting more people to work.
So we thought let’s challenge this practice of commission rates and come up with new products that helps our clients to hire faster and cheaper.
Fixed Price RPO – Flat $1800 monthly fee for any # of hires
How does it work? We assign a dedicated recruiter to work alongside your internal staff with specific weekly milestones for screening and sourcing. Typically they would source a minimum of 30-50 fully qualified candidates that meet all your criteria using job boards, social networking sites such as linkedin and zoominfo and direct head hunting.
Results: On an average the recruiters will help our clients close between 1-3 FTE positions monthly. That’s savings of 85% for our clients – Even if you assume only ONE hire a month using our Fixed Price RPO model
Typical consultancy cost = $ 16k (@20% commission on $80k salary)
Pragna cost = < $ 2k
Our Commitment: We assign trained and highly qualified people who source candidates. They are typically engineers, graduates in your area who can understand your domain quickly to source high quality candidates. If you are not satisfied with quality of our work and sourcing, we offer no obligation warranty.
We look forward to save a bundle of money for our clients and lower the unemployment rate!
