Emerging HR outsourcing trends

Competition is becoming global and, businesses are using digital infrastructure to outsource various business processes as managing multiple things in-house is eating a lot of energy and does not allow you to focus on your core business. Outsourcing specific tasks or support functions to the right partner allows them to focus better on core business functions, reduce expenses, and save time while availing the services and expertise of seasoned industry professionals.

HR outsourcing is a trend that has been gaining momentum for the last few years. As organizations are becoming more global, they need to be able to scale their HR functions as fast as their business units. HR outsourcing can help them with this because it allows companies to access the global talent pool and focus more on core competencies like talent acquisition, training, employee engagement and other areas of the HR function. In this write up we will explore some of the emerging trends in HR outsourcing such as resume sourcing and recruitment coordination outsourcing, HR operation and payroll outsourcing which have gained popularity recently among companies who want to keep up with their competitors by reducing cost or increasing efficiency in a particular area of operation without compromising quality delivery standards

Resume Sourcing Outsourcing

Resume sourcing is the process of finding the right talent for a job opening. It is one of the most important aspects of HR outsourcing.

Organizations that are recruiting regularly have to post a job or advertise a job after they get many applicants and their team spends a lot of time and energy shortlisting the right profiles who are matching to your requirements. You can outsource the whole process to an HR partner who will not only post or advertise jobs on your behalf but they will also shortlist the right resumes who are matching to the job so your team can only focus on interviewing the shortlisted candidates than going through thousands of resumes and spending their energy in sourcing and shortlisting resumes.

The resume sourcing and screening process helps organizations to improve their overall recruitment cycle and time to hire the right candidate which helps them to save costs and onboard candidates faster.

Recruitment coordination outsourcing

Recruitment coordination outsourcing involves a third party working on your behalf who coordinates the entire recruitment process on your behalf. Recruitment coordination involves coordination with hiring managers for interview shortlisting, interview scheduling, interview feedback collection, communication with the candidate for different stages of recruitment, document collection of all shortlisted candidates, validating documents, background verification checks, rolling out offer letters and coordination with the candidate for their joining and onboarding process.

By outsourcing this process, you can ask your internal recruitment team to focus on interviewing the right candidate and screening them than spending their time in coordination work.

Employee onboarding outsourcing

Employee onboarding outsourcing is the process of outsourcing the entire process of employee onboarding to a third party.

Employee onboarding outsourcing includes all inbound and outbound communication between the company and the new hire, including but not limited to: messaging, joining formalities, document collection, onboarding calendar and schedule management, Induction process etc. The outsourcing partner also provides reports on the progress of new hires and also takes regular induction feedback from all new hires.

Employee onboarding can happen through a virtual model so your onsite team can get free from all the backend coordination with the candidate, they can focus on more value-based work which is employee engagement and employee coaching and mentoring.

Payroll outsourcing

Payroll outsourcing is an HR-related service that many companies have been doing for a long. Payroll can be complex and time-consuming, with many components to manage. HR departments often find themselves spending hours managing their company’s payroll, which hinders their ability to focus on more important tasks like training employees or developing new products. Payroll outsourcing can help solve this problem by taking over the responsibility of paying employees and filing taxes—all while saving you time and money in the process!

It’s important to remember that when you’re considering payroll outsourcing, your human resources department must have the right systems in place to manage the service effectively.

These are very important services that most Startups and MSMEs should opt for as they do not have in-house expertise in managing compliances and maintaining the confidentiality of the compensation at various levels. If an in-house team is not mature to manage this confidentiality in-house it is always a good option to outsource it.

HR Operations outsourcing

HR Operations outsourcing is the process of outsourcing back office HR operation functions to a third party. It includes onboarding, employee induction, leaves and attendance management, document management, HR helpdesk and confirmation and separation management.

HR Operations outsourcing is beneficial for companies as it reduces HR costs and improves employee service levels. Also, it can improve the efficiency of HR processes by standardizing them across different locations and reducing time-consuming manual tasks like data entry or tracking employee attendance with spreadsheets.

HR operations outsourcing is the best available option especially for Startups and MSMEs as it provides them to streamline and stabilise their HR department and helps them to focus on their core business.

Strategic HR Outsourcing

This service should ideally be availed by most growing Startups and MSMEs as it is difficult for them to hire a dedicated HR head. As they are growing their HR processes should also evolve to support the business growth and their in-house team is more operational and does not have expertise in managing growth and partnering with the business.

Strategic HR outsourcing includes HR Audit, HR policy realignment, HR manual creation, setting up KRA/KPI or OKR process, HR advice to the existing HR team, creating an employee engagement program, managing change management processes and HR automation initiatives.

Benefit management (Insurance and other benefits)

Benefits management is a growing area of HR outsourcing. Benefits can include insurance, Group Personal accident policy, and other benefits. Benefits outsourcing is highly specialized and often combined with HR outsourcing.

Employee benefit is one of the important aspects of retaining employees and creating a better workplace. Benefits management is a very specialised job and at the same time, it is very tedious. Outsourcing Benefit management to the right partner who is specialised in managing Employee insurance, group personal accident policy and workman compensation policy. They also help your employee to process the claim and coordinate with the insurance service provider on your behalf.

L&D Outsourcing

L&D Outsourcing is a way to help companies improve their training programs and provide more cost-effective services. L&D outsourcing helps companies focus on their core business while outsourcing training to experts. L&D outsourcing can be used to train employees in a variety of areas, including soft skills, technical skills and hard skills. Companies that want better quality training must first evaluate their current learning programs before deciding if they should outsource the delivery of these programs or not.

L&D outsourcing partner helps you to find out training gap analysis, help create training content, create a training calendar, execute the training program, measuring the effectiveness of the training program.

There is a huge opportunity for HR outsourcing in India

As the world continues to become more and more dynamic, so must your HR strategy. There’s no better way to stay ahead of the curve than by outsourcing your company’s human resources needs.

There are many benefits to outsourcing your HR department—dynamic businesses can use this as a way to free up resources for other tasks and processes, while still maintaining an expert level of service in an ever-changing field. In addition, it can help you keep up with trends in recruitment and employee engagement because the outsourced experts will be able to do some of the work for you. Finally, if you’re hoping for cost savings or want someone else to handle payroll taxes on behalf of your business, you should consider outsourcing these responsibilities as well!

HR outsourcing is still a relatively new field, and there are many more opportunities for growth. It’s clear that HR outsourcing is not just a trend—it’s here to stay. It will be more important than ever for businesses to outsource their HR functions so they can focus on what matters most: their core competencies.

HR outsourcing is expensive on the contrary it helps you to save 30% of your overall HR cost, Contact the experts at Emgage to learn how our team of HR experts can help you.



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