August 29, 2022

What is HRO? All you need to know about Human Resources Outsourcing

In a landscape where startups and quickly expanding companies are the norm, it’s essential that all internal areas of organizations can keep up that growth with a good performance. However, handling all the responsibilities related to an expanding company it’s not easy. In that situation, the best option is to outsource some of the non-core areas such as, for example, the Human Resources area. 

What do you know about Human Resources Outsourcing? This is a service that can boost the performance of all types of businesses. In this article we will delve into de concept of Human resources, the way it works and its main benefits. 

What is Human Resources outsourcing? 

What is Human Resources outsourcing

Human Resources outsourcing refers to the process by which a company transfer all or part of the tasks and responsibilities of the Human Resources area to an external agency. As a result, the organization that hired the outsourcing services don’t need an in-house Human Resources area. 

Services in Human Resources outsourcing 

Recruitment outsourcing 

Personnel recruitment is one of the main responsibilities in the Human Resources area. For that reason, it’s not surprising that the most demanded service in Human resources outsourcing is recruitment outsourcing. In this case, the outsourcing agency is responsible of all the phases of the recruitment process: candidate sourcing, resume evaluation, candidates’ interview, etc. 

Of course, when we speak about recruitment outsourcing, headhunting is another important aspect. After all, finding talent for high position is not easy at all. In this case, the outsourcing agency will attract and evaluate candidates for a management position. 

Talent management outsourcing 

Once the candidates have been hired, it’s necessary to integrate all newcomers, engage them and help them grow professionally. For this reason, talent management outsourcing is usually another common alternative. In this case, the outsourcing agency handles all HR processes and activities such as onboarding processes, work climate assessment, organizational culture evaluation, team development, etc. 

Payroll outsourcing 

Finally, some companies also choose to outsource all task related to payroll management. This way, the external agency is the one that handles frequent activities like wages payment, tax withholdings and other assorted tasks. 

Benefits of Human Resources outsourcing 

1. Saves time  

Recruitment processes can take several weeks or even months depending on the position. Regular companies have to pay attention to that process as long as it lasts. Additionally, personnel management is something that requires constant attention and could have problems and need improvement. By outsourcing those responsibilities, companies have more time to focus on other processes and, as you know, time is money. 

2. Saves money 

A recruitment process requires investing in professionals who can successfully source and evaluate candidates. The same happens with Human Resources management since it’s a process that usually needs resources. Wouldn’t it be great to reduce all that expending? Outsourcing is more cost-effective than having a complete Human Resources area. 

3. Access to specialists 

Who wouldn’t want to work with specialists with many years of experience in the field? However, having that kind of professionals inside any organization is not that easy, isn’t it? Actually, it is! That is another of the many benefits of Human Resources outsourcing. Many of these agencies have highly-skilled professionals. For example, at T2W we have more than 25 years of experience in the field, which guarantees your organization will get the best performance. 

4. An adaptable service 

Lastly, adaptability is another of the main benefits of Human Resources outsourcing. Keep in mind that each organization has different needs. Some of them require a Human resources area that can handle many processes and responsibilities, while some others just need a couple of specific tasks. That’s where outsourcing proves to be especially effective.  

For that reason, outsourcing is perfect for big companies as well as small startups since it allows them to customize the service according to their needs. For example, many companies choose to outsource the whole Human Resources area: talent acquisition, personnel management, payrolls, etc. On the other hand, other organizations only require recruitment outsourcing in moment of high rotation, since they can handle the rest of tasks of the area. 

Nos you know what is HRO, the way it works and its main benefits. Make sure to select the right agency and you’ll have a service that will boost your business. 

At Talent2Win, we strive to align your company’s business objectives with the best Talent Acquisition strategies available. If you want to learn more about the services we offer, do not hesitate to contact us. 

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