Call Center Mexico: The Advantages of Outsourcing HR Functions

Call Center Mexico: An organization’s human resources department is responsible for a variety of functions. An HR department may oversee employee payroll and tax filing, as well as employee benefit and health administration. A very critical HR function is also manage legal compliance, maintain files and records, and oftentimes organizational development (OD).

For many companies, depending on size and core competencies, the various functions of the HR department are too comprehensive and complex to maintain in-house. In many cases, businesses that outsource HR functions receive several advantages that support the company’s bottom line.

Risk Management

Human resources outsourcing firms help businesses minimize risk. Employment and labor laws change regularly, and it can be difficult for employers to remain up-to-date on regulations that affect the workplace. The most common outsourced application is Payroll. Over 80% of large corporations (500 employees or more) outsource this function. This is the oldest and largest example of outsourcing an HR function to help mitigate risk as oftentimes doing payroll can be complex and not a core company function. For the nominal cost to outsource this function to payroll providers the cost is well worth the benefit.

Outsourcing firms employ HR professionals whose purpose is to stay abreast on various aspects of tax and labor employment laws. Here is another strong example of an HR function that makes sense; setting up a new operation in a foreign market. Oftentimes, when companies expand into new markets outside their home country, it makes sense to outsource the development of your company’s HR and Employee Policies and Procedures (P&P) Manual according to the labor practices of that market. Remember that creating the right P&P when entering a new foreign market is critical.

The same is true for creation of your Employee Compensation and Benefit (C&B) structuring. Understanding how best to structure your C&B is not only critical, but has significant strategic value for how to best attract and retain employees. In many foreign countries it is very difficult to retract established employee benefits. A company can always add benefits, but reducing them may be against established labor law. So, outsourcing the development of P&P and C&B to an HR company that has local knowledge reduces risk and helps ensure compliance for navigating market entry into unchartered waters.

Outsourced HR staff helps businesses comply with these laws to avoid costly lawsuits brought on by employees. HR firms also maintain and audit company policies and practices to ensure the organization and its employee’s best interests remain protected.

Cost-effective

Outsourcing helps reduce the cost of maintaining non-revenue generating back-office expenses that are not a company’s core competency. A fully functional in-house human resources department requires additional space and highly trained and experienced HR professionals. Many small businesses find it more cost-effective to outsource HR functions rather than expand to a larger location to meet the space needs of another department. Furthermore, outsourcing costs are variable and can be reduced when business needs warrant.

Some companies who still prefer to have these functions performed internally in-source HR professionals to work on-site. Again, based on the size of your organization, you may not need dedicated HR support and the provider can share this cost amongst other clients. Other examples of in-sourcing or using contract HR could be to support start-up operations or seasonal needs where you do not require this level of support when your company is running at steady-state.

Efficiency

Maintaining an efficient and productive workplace is absolute! Outsourcing HR functions create greater efficiency within human resources systems. Advanced HR technology utilized by outsourcing providers help streamline important HR functions, such as payroll, benefit administration and compliance management. Outsourcing helps companies focus more time dedicated to improving the efficiency and effectiveness of the workforce on core operating functions.

Employee Development

Organizational Development (OD) is essential to support both employee and company growth. Not all companies are experts at performing or creating an OD and Performance Management systems. Outsourcing OD functions may help businesses manage employee performance and development. The same is true with training.

While many companies have libraries of training content, sometimes it makes sense to outsource training for course offerings not maintained internally (Project Management, Six Sigma, Leadership, etc.). Outsourcing some or all training allows for a fresh approach to content, it may provide learning that is not housed internally like eLearning, or self-paced or blended learning methodologies. Most often the quality and the time to deliver is better through a qualified outsourced training provider than can be done internally.

Keyword: Call Center Mexico

Source: http://www.callcenternews.info/topics/topics-news/outsourcing/844-aooh.html

Published on 11 May 2016Written by Jon Kaplan, CEO and President, TeleDevelopment Services, Inc