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We are seeing a rising trend where companies are outsourcing their HR services and hiring third party HR agencies to help them meet their HR needs. This growth is fuelled by enterprises seeking strategic partners who can support a next-generation HR model where technology is leveraged to reduce costs, improve process efficiency and integrate a seamless, intuitive employee experience.

So, should your company also consider outsourcing your HR functions? Let us look into some of the advantages of outsourcing.

Technology can make your business more efficient

A 2018 study from PricewaterhouseCoopers (PwC) found that 75 percent of surveyed companies now have at least one HR process in the cloud. 40 percent have core HR systems like an HR management system and another 26 percent of respondents said they planned to move a core system to the cloud in the next one to three years.

The incline of technology companies using HR tech has helped their clients save time and you may be interested in exploring automating your HR functions to improve the efficiency of your business.

One technology company that has been transforming its clients HR processes is activpayroll. Their services span over 140 countries and they help make the process of paying your employees a breeze, no matter where they are. Their payroll services include performance metrics, tax compliance and group reporting.

If you are looking to help your HR manager save time, then check out Su-ette, a technology company that creates customised chatbots that enables employees to get the answers to their HR questions by talking to the chatbot instead of having to go to your in-house HR expert to get a reply. Su-ette estimates that their chatbots have been shown to give their HR customers 30 to 50% of their time back.

At DecodeHR, we are also riding the wave of technology to help our clients propel their business to the next level. We work with many technology partners to embed their technology in our solutions, so that when you outsource your HR functions to us, you can have access to the best technology products in the market that can drive your business to greater heights.

dcHR.tech is a portal wherein our technology partners have their tools listed. Tools like X0PA or Enboarder are game changing in their respective fields can aid organizations in their Human Capital transformation journey. We understand the challenges involved in the HR digitalisation process and the stakes involved. Hence, we can help clients develop their digitalisation strategy and transformation roadmap and select the right tools to reap maximum benefits.

Expert advice

Another trend in the HR industry is the rise of HR Retainer Services. This means hiring outside HR consultants on a retainer basis to give you expert advice and help with your HR issues.

HR consultants can be a valuable addition to your business, giving you timely advice on best HR practices, policies and procedures. They can provide advice on fair and performance-based compensation, training in relevant skills and implementation of non-discriminatory policies. They are also able to give vital support and direction in matters like dealing with workplace disputes, disciplinary issues, performance management and dismissal of staff.

The rising trend for hiring HR consultants is also augmented by companies without an in-house HR team, where they realise the need of a HR consultant for guidance on HR legislation and fair work compliances. For example, if you are a Singaporean company hiring a foreigner for the first time, there may be policies on expatriates that you are unfamiliar with. A HR consultant will know what laws extend to foreign employees, like how to apply for a work pass and what annual leave he/she is entitled to. At DecodeHR, our retained clients receive relevant and current legislative updates on matters such as employment and labour legislations and social security legislations.

Continuity of business operations

A great benefit of outsourcing your HR functions is that it prevents disruption of HR services. The departure of a key HR member can throw a spanner in the flow of your business operations. The need to recruit, interview and train a new HR staff would take up precious time and if there is not a HR staff during the transition period, the company may face difficulties in carrying out key HR activities.

However, with outsourcing HR functions, there will always be a steady pool of HR specialists to manage your organisation’s HR operations. There will always be plenty of others who can replace the staff timely and seamlessly regardless of whether one or two people happen to leave the third-party HR organisation.

Recruiting top talent

Attracting the best talent is a challenge that many companies face. Thus, there is a trend for companies to outsource their recruitment functions to an external HR recruitment agency as it can help them save time and effort.

Liaising with a HR recruitment agency provides companies access to a wider pool of candidates, including access to passive candidates that they may not have otherwise been able to reach.

If your business is not getting enough stellar resumes, an external HR agency could be the secret to attracting the cream of the crop.

Using an external recruitment agency is also helpful for dealing with companies that are experiencing rapid growth or seasonal spikes that lead to fluctuating recruitment needs. Seasonal recruiting and periods of rapid expansion can put a strain on an in-house HR team. The HR agency can also provide experienced recruiters according to client needs, as well as advanced recruiting technology to help them cope with their fluctuating growth patterns to make sure they can hire the right employees they need at the right time.

Increased focus on core business

HR outsourcing has also become popular as it helps companies focus on their core business. Companies who hand the reins of their HR responsibilities over to an external HR firm will be able to spend more time developing programmes that boost creativity and productivity. With key HR functions taken care of by an external HR agency, companies can focus on what they do best, spending less time on paperwork and more time improving the efficiency of their teams.

How to select the best provider to outsource your HR

Given the potential cost savings, the power of technology in HR and the expertise offered by HR consultants, you may be ready to find a third-party HR agency to handle your HR functions.

With so many HR agencies in the market, how can you know which one is the best for you?

The ideal way to find a good HR agency to outsource your HR needs to is through word-of-mouth recommendations.

Once you have shortlisted the HR agencies that you are interested in working with, ask them to explain how their expertise and experience will benefit your company. In particular, you should pay attention as to whether they have a tried and tested approach as opposed to just a theoretical concept.

Feel free to talk to us about our HR Retainer or Recruitment services, we are definitely more than willing to help you out!

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