Can HR be Outsourced?

Posted by PeopleStrong under Thought Leadership

During an employee’s tenure in an organization, HR touches an employee on a regular basis. 80% of the times, these interactions are principally administrative and transactional in nature (illustrated in the figure alongside). However from an organizations point of view most important activities for HR are strategic tasks: the top 10% of the pyramid.  These strategic activities are the differentiators of an organization and can make it a better place to work. Even CEOs envision that HR should be focused on strategic activities rather than on transactions activities. These strategic tasks depend on the genome of the organization and vary significantly across organizations.

Most of HR time is however, spent on employee life cycle transactions. Most, if not all of these processes can be standardized, centralized and automated through an outsourcing framework. This will include recruitment processes, on-boarding, training, administration, payroll, letter generations, full and final, exit interview and employee helpdesk.  An outsourcing partner can perform these administrative activities with higher reliability and accuracy, lower cost and a faster turnaround time enabling quicker resolution of employees’ issues.

With this the structure that emerges for the HR team is that of high level contributors, perhaps internal consultants, HR process designers and change champions. HR outsourcing empowers HR leaders to have real time views of their organizations for the vision and charter of the company.

-Pankaj bansal, Co-founder and CEO