Top 5 Reasons HR Is On The Move
Discover the driving forces: ‘Reasons HR Is On The Move.’ Explore trends reshaping the HR landscape in our insightful blog.
source credit: Meghan M. Biro – Forbes.com
“Today an estimated 50 percent of large companies outsource all or part of their HR needs.”
Is this a good thing or a bad thing? Neither. Like everything else in business and talent management, a one size culture fits no one. The key is to develop a strategy and solution that works for your organization.
Here are the 5 top reasons so many companies are turning HR over to outsourced experts:
1) It frees them to concentrate on core competencies. HR does not produce a product, yet it can eat up a lot of an organization’s time and energy. A great HR department demands resources and continual oversight and innovation. Many organizations would rather focus on their core strengths and/or moneymakers by outsourcing HR.
2) It saves money. Running an effective HR department costs bucks, sometimes big bucks. Many organizations do the math and just decide it’s not worth it. It also allows organizations to hire world-class specialists they could never afford to bring on-board permanently. This kind of virtual workforce will continue to find momentum.
3) It improves compliance. There are a whole lot of regulations out there these days. There is the constant threat of lawsuits for sexual harassment, wrongful termination, safety violations, etc. When you hire a compliance specialist, these headaches become theirs.
4) It improves recruitment. Recruiting top talent is an art (and a science) and a lot of HR departments are the equivalent of weekend painters. Many organizations would rather turn this critical function over a company that does nothing but recruit talent.
5) It provides access to the latest tools and technology. The most innovative HR-services supplier will be up on the very latest technology, including big-data mining, analytics, virtual workforce leadership, cloud technology and social media, and will know how to exploit them to meet an organization’s specific needs.