Human Resources, globally, is moving towards the so-called concept of the “NEXT GEN HR”. Organizations are leaning more on HR to address issues related to talent management, increasing regulation, dynamics of an aging workforce and generational differences. Businesses need to be proactive to meet these challenges.
An HR Function is critical component of employee welfare which in turn help the organization, specially when it is a growing organisation with no specific HR department/Manager/Team. Many times the SME business owners/CEO’s take the role along with people around based on need. However, a formal way of approach in addressing the needs of Human Resources in organization would help in building and sustaining business. Any small incidents related to people can cause a huge damage to the employee motivation in the organization. Since the SMEs can’t really spend that time and energy, there is an increasing trend in HR Function outsourcing with the experts and benefit in business improvement.
How HR Outsourcing benefit an SME
Setting up strong human resources practices have a great potential for increase in your business value in productivity and profitability. But, the ability of HR to foresee the statutory changes, people behavioural patterns and keeping pace with the changing environment has a significant need for resources. The more time spent by the business owner on these tasks take them away from their focus on core business development and new business acquisition.
Outsourcing the HR Function through an expert company would make more time for your business. The SME also can gain from the expertise not just the resource but also the capability of the firm’s engagement with multiple industry exposure and bringing in the best practices and customize.
Many SME businesses understands the need of outsourcing the function and gain quality time for improving business drive, but they end-up many times looking at the cost spent as “COST” and not the advantages.
The general thinking of “I can do it” attitude kills the productivity of the Owner/CEO. In some of the cases who have appointed their HR Manager, HR Associates also need lot of support in making them productive. In such cases the business owner himself/herself spends time as a HR Head and eventually giving away their precious time away from the core of the business. The other reason for not engaging an outsourcing partner is the “fear of unknown” and the ability to take a quick measurement of advantages and taking decision.
There are multiple ways to outsource the HR, but we are Confluence believe in the HRO (Human Resource Outsourcing) model where we work on multiple areas for the SME such as :
- Designing policies and procedures.
- Strategic HR practices.
- Talent Transformation and its Management.
- HR Technology
- Employee engagement
- Training and development
- Payroll Management
- Compensation and Benefit
- Change Management
Confluence can help SME businesses identify, develop and implement solutions to meet human capital issues