There are different types of outsourcing depending on what your needs are as a company. Depending on the size of the company, its operations, or the number of employees, the type of HR to be employed defers. Today, I have listed five of the most important types of HR outsourcing below. Meanwhile, see here for hr advisory services Adelaide.
1. Software-as-a-service
Software-as-a-service (SAAS) is a software license and distribution model in which a supplier or service provider remotely hosts software programs and makes them accessible to users via a Web server. This software distribution model creates greater corporate agility and offers a cost-saving incentive. Employers frequently pay for connection to talent recruitment (e.g., monitoring and training/performance applicants) and payroll applications in the HR domain.
2. Business-process outsourcing
A contractor contracts a single business operation, such as payroll, to a third-party service provider under a business-process outsourcing (BPO) agreement. This is different when compared with contracting by SAAS, seeing as how the facility, as well as the applications, are supported by the BPO provider. The outsourcing of profit management, which replaces the cumbersome and specialized tasks for the benefit of auditing, distribution, and monitoring to a third party, is a typical BPO practice.
3. Single-source outsourcing
Under this outsourcing arrangement, also called single sourcing, HR professionals access one solution to meet their needs, from welcoming new hires to managing turnovers, and all the tracking in between; a single supplier covers the full employee life cycle. This type of human capital management technology starts at talent acquisition, includes time and labor management and payroll, covers talent management, picks up benefits administration, and supports the separation-of-employment process.
4. Shared services
This applies to the restructuring of a corporate role into a professionally trained internal organization or community within a company. Third parties can also be equipped with mutual resources. They are also referred to as shared-services centers when the service delivery team’s services are merged under a central operation. Payroll, recruitment, accounts payable and receivable, travel costs, insurance benefits enrollment, and pension management are among HR activities that can be folded into a shared-services package. The administration tasks can be performed in-house or subcontracted under the centralized platform. In recent years, technical developments and the highly advanced use of Internet networking have played a major role in stimulating shared-service agreements.
5. Professional employer organizations
A skilled employer association, or a certified PEO, is an organization that offers HR supervision and compensation to employees of an employer in a co-employer agreement or employee lease scheme. The PEO, as a co-employer, pays salaries and payroll taxes from its own budget to worksite workers, receives and files taxes to state and federal authorities, ensures a long-term arrangement with workplace employees, and legally holds power to employ, fire, and reassign workers. For these costs, the company reimburses the PEO and pays a recurring administration charge depending on the number of workers working.
In conclusion, they are various types of HR outsourcing; every company must decide which suits it bests, depending on their capital, number of workers, type of business, and several other factors.