Many organisations strategically implement outsourcing solutions to streamline transactional services within the HR function – for example, recruitment, payroll and HR administration. Outsourcing these services allows HR professionals within the business more time to effectively partner with business leaders on strategic HR issues impacting future organisational success. •
Regardless of the nature of the outsourcing solution, you will be completing tasks that will be similar to duties of the in-house HR role. However, the difference will lie in the depth and breadth of experience you gain to diverse HR functions. If you are working within a team that provides a specialist HR function, in all probability you won’t get exposure to other HR functions within the organisation. You may also miss out on the opportunity to gain exposure to the implementation of strategic HR initiatives and broader business strategy as these duties are undertaken by in-house HR professionals. •
(-)Centralised HR service centres are typically isolated from the business and the HR business partners who are aligned to the business units. •
Common reasons for going down the HRO route are cost reduction, providing expertise not available internally, increasing HR effectiveness with increased flexibility and speed of response and allowing the resultant HR team to concentrate on strategic issues or in the case of smaller organisations replacing the HR function altogether. The specific processes that are included within any outsourcing arrangement will vary from organisation to organisation. Some organisations may outsource virtually all of their HR processes where others select specific components such as payroll or recruitment. •
For example, in a rapidly changing economic and business environment organisations which have outsourced their recruitment processes may experience a reduction in staff numbers and therefore also reducing recruitment volumes. The specified...
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