21(116) 2015
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HR & Professional Training

The benefits of outsourcing your HR business process

by Tomasz Szpikowski, president of Bergman Engineering
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When is it worth deciding to use the outsourcing of HR services? In what kind of businesses is this a particularly advantageous solution?

In many companies, HR issues often tend to be neglected. Independent HR actions are either not taken at all or do not bring proper results. The process of managing the staff and its remuneration is that complex itself that it may generate too high costs for the company. If the execution of those services is commissioned to an external company, it can bring better results and generate savings.

For several years, the Polish market for outsourcing HR and other business processes has been developing dynamically. In Poland there’s an increasing number of centres which provide support for corporations’ business processes across Europe and worldwide. Today, even domestic companies are more and more willing to entrust the suppliers with the handling the processes which until recently have been the domain of internal departments, for instance, such as calculating payroll and staff administration.

However, the decision to commission HR management to external companies should be embedded in the company’s strategy and should be connected with the business aims that it wants to achieve. The thorough calculation of savings that can be expected from outsourcing helps firms decide whether or not to start cooperating with an external company and allows managers measure the effects of such cooperation.

Outsourcing of HR services will be the perfect solution for firms of all sizes. The most noticeable advantage is for those companies which hire a significant number of employees and which offer seasonal work. Indeed, frequent rotation of employees and complexity of the staff and remuneration cause considerable impediments in carrying out the HR function.

The biggest advantages of outsourcing are:

  • the possibility to limit the costs significantly and reduce headcount, ensuring that there will be skilled employees to execute the task commissioned externally
  • the opportunity to focus on strategic goals, freeing valuable managers from time-consuming administrative activities that add little or no business value
  • delegating responsibility for the correct conduct of personnel processes, such as calculation of payroll to an external company which offers the assistance of dedicated and experienced experts

In case of employing highly qualified specialists, such as engineers or IT experts, there also other reasons for which it is worth commissioning such services to external companies. An outsourcing company enables businesses to make use of the services provided by experts and managers who are very experienced and professional, and whose employment on a permanent basis would be too expensive or irrational (for example, in the case of small and short-term projects).

Commissioning the company’s specific task to an external group of experts who usually excel over in-house employees in terms of knowledge, skills and experience is also a more efficient way of using working hours. Moreover, it often happens that engineers themselves prefer working on contracts because such a form allows them to achieve higher earnings, more flexible hours and participation in many interesting projects.

Better organisation and higher effectiveness give the company enormous advantage over the competition, not only in terms of potential clients but also employees whom such a company could recruit. The fact itself that the staff are managed by professionals from the sector makes a given company look extraordinarily attractive on the market. As a result, it builds its strong position and allows for the commitment of its opportunities to the company’s development. Cooperating on the principles of outsourcing, the organisation has constant access to knowledge and databases which are at the disposal of market leaders. This, consequently, opens enormous opportunities and limits the need to perform work which if done by the company on its own, could be ineffective.

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