Human Resources Outsourcing (HRO) is where your company decided to hand over the responsibilities for those jobs normally associated with human resources to an outside firm. This can include such tasks as payroll, recruitment, benefits, taxes, and firing of staff. Recruitment Process Outsourcing (RPO) is when only the responsibility for the recruitment needs of your company are passed over to another firm.
There are a few reasons why you might consider HRO . If your company manages its own human resources then this can be expensive and time consuming. Using an outside firm to take over some or all of these tasks can be more cost-effective and allows your company to focus on what it does best. The fact that these outside companies only focus on human resources means that they can often do the job more efficiently.
Not all companies will want to eliminate their human resources department; some will only want to hand over responsibility for certain tasks. Recruiting new staff can be a huge headache and the need to do this can occur at the most inconvenient times; maybe at a time of year when your business is swamped with clients. It may require many hours of attention from senior staff who could probably find more productive ways of using this time. An RPO firm will be able to take over the responsibility for recruitment from to start to finish. Additionally they will have the knowhow and resources to ensure that they can hire the most talented employees available. The better RPO service will be expert at what they do and will fully understand the needs of your company.
Handing over the responsibility for managing your human resources to another firm can seem like a bit of a risk. It is understandable that your company wants to have full control over its inner workings and human resources will be vital part of this. Can an outside firm really understand the way you like things done? Even handing over control of recruitment to an RPO firm can seem like a huge step. Those who work in your company will have a far better understanding of the staff dynamics and so will be in a better position to select appropriate employees who will fit in well with the team. Outsourcing in this way will not suit every company and it is important that you ask yourself a few questions before making the move.
Do you want someone to take over just your recruitment or take over all your human resources requirements?
Would HRO or RPO free up your company to concentrate on other things?
Will your company really save money by making this move to an outside service provider?
Can you trust an outside agency to do these tasks for you?
The way you answer the above questions will determine whether or not this form of outsourcing will work well for you. It should also help you decide on what type of service you require. HRO and RPO do offer services that have a proven record of success.