Virtual HR Services

What is a Virtual HR Manager? – Advantages and Challenges

In today’s fast-paced and globalized business environment, virtual work arrangements have become increasingly common.

Virtual HR, in particular, has gained popularity in recent years as a means of outsourcing HR tasks to a remote team, usually through cloud-based software.

Virtual HR involves the practice of outsourcing HR tasks to a remote team, using digital communication technologies to manage and coordinate HR processes.

By leveraging technology, businesses can access HR expertise from a wider pool of talent and save on the costs associated with maintaining an in-house HR team.

There are many advantages and also some Challenges of a Virtual HR Manager and team, Advantages and Challenges depend on the stage of your business and the size of your business.

If you are a startup fully virtual HR model gives a great advantage but for a descent size organization (More than 50 people) you should always consider a balanced model where some functions of HR should be virtually managed and functions like employee engagement, HR business partnering role should be managed onsite or in-house.

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Advantages of Virtual HR

Cost savings

One of the primary benefits of Virtual HR is the cost savings that come with outsourcing HR tasks.

Businesses can avoid the overhead costs associated with maintaining an in-house HR team, such as onboarding, Employee helpdesk, salaries, benefits, and other employee life cycle management.

For most Startups and MSMEs HR is cost centre and Virtual HR gives them the opportunity to offload their HR challenges to professional Virtual HR Manager organizations which free founders from HR management so they can focus on their core business.

Access to expertise

With Virtual HR, businesses can tap into a wider pool of HR experts, regardless of their location.

This allows businesses to benefit from a range of HR skills and knowledge that may not be available in-house.

Most startups and MSMEs have a one-person HR team and they are junior and do not have the expertise of managing a complete HR department.

Professional Employer Organizations (PEO) have trained the HR team and their Virtual HR team can manage end-to-end HR from day 1.

Increased flexibility

Virtual HR allows businesses to scale up or down HR resources quickly, depending on their needs.

This is particularly useful for startup and MSME businesses that may not have the resources to maintain a full-time HR team.

Virtual HR is cost-effective and it gives flexibility to startups and MSMEs to manage their HR budget effectively.

Improved efficiency

Virtual HR models use cloud-based software that streamlines HR processes, making them more efficient.

This can free up time and resources for businesses to focus on core business functions.

The virtual HR Manager platform helps startups and MSMEs to automate their complete employee lifecycle management which streamlines and simplifies human resource management.

Easy Access to the HR team

Virtual HR team provides employees with the advantage of reaching out to them at any time without taking any appointment.

Employees can reach the virtual HR team through chat, email and over the phone.

Better response time

Employees can track the progress of their queries.

Tech platform helps to improve the overall employee experience and improve response time.

Challenges of Virtual HR

Lack of personal interaction

Virtual HR lacks the personal interaction that comes with an in-house HR team.

This can make it difficult to build strong working relationships between employees and HR.

For a small organization, it is fine as there might not be a full-time HR role but for a decent size of organization, there should be a virtual and onsite HR combination.

Security risks

Virtual HR involves sharing sensitive employee information with third-party providers.

This can increase the risk of data breaches and other security issues.

Before outsourcing, organizations should ensure they have a detailed NDA signed with the service provider on data security.

Communication challenges

Communication can be challenging when working with remote teams.

This can lead to miscommunication and misunderstandings, which can impact HR processes.

There should be a formal communication channel that must be fixed and service level agreement should be followed for managing employee grievances and service requests.

Limited control

Outsourcing HR tasks if not managed with the platform can result in limited control over HR processes.

This can make it difficult for businesses to ensure that HR practices are aligned with their overall business goals and values.

Below is a list of services offered by Virtual HR

  • HR Policy design
  • Employee handbook creating
  • Recruitment coordination
  • Employee onboarding
  • Maintaining employee record
  • Employee attendance and leave management
  • Employee helpdesk
  • Payroll management
  • Labour & Compliance management
  • Employee benefit management
  • Employee Confirmation management
  • Employee separation management


In conclusion, Virtual HR has its advantages and Challenges.

While it can offer cost savings, access to expertise, and increased flexibility, it also comes with challenges such as limited personal interaction, security risks, communication challenges, and limited control.

It is important for businesses to carefully consider their HR needs and assess whether Virtual HR is the right option for them.

Ultimately, the decision to implement Virtual HR should be based on a thorough analysis of the costs and benefits and expertise of the service provider.

Always look for a virtual HR service provider who has SAAS HRMS platform.

To know more about Virtual HR services and its benefit, pls. set up a free consultation call with our team of HR experts.

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