HR outsourcing has been gaining traction in the outsourcing industry for nearly a decade. Today companies opt to outsource HR related activities to the experts in the area. According to recent report by Everest Group, the leading analysts and research firm, Multi-process HR outsourcing is expected to grow at a rate of 6% to reach US$ 3.3 billion in the year 2012.
The common dilemma of the companies deciding on outsourcing HR activities is whether they need to outsource to single vendor or multiple vendor. This is because they become too concerned about the cost factor and the investments. However, in most cases, the companies do not realize that outsourcing HR activities to an integrated service provider is more advantageous due to the following reasons:
- The company will be available with full HR service solutions.
- The staff can retain their focus on the core strategic areas.
- The company can leverage on their existing capacity, and,
- It helps to attract and retain the top talents in the company.
TriNet is one such firm which provides integrated HR solutions for organizations worldwide. Below is a case study that discusses how TriNet integrated HR solutions benefitted a small company.
The company is into the business of helping people convert documents in paper form such as PDF,HTML, ASP etc into internet hosted forms in five minutes without the need of any technical experience.
Since the company is expecting to grow within next few years, the officials started realizing the vital role of HR in the organization. But the challenge was that they had a limited budget to build the infrastructure required for HR services and moreover they had outsourced payroll activities.
The company officials realized that outsourcing to an integrated service provider would be a better choice rather than outsourcing it to multiple vendors.
TriNet HR solutions primarily developed web based platform where the employees could log in, fill in information, and choose benefit programs. Then the provider helped them with recruiting functions. TriNet also helped the company by processing the payroll and in meeting various compliance requirements as per the law. TriNet later helped the company in purchasing the insurance package that cover disability and life insurance. The employees were allowed to view and update their information online and they were provided with a toll free number to contact TriNet for any HR related inquiries.
- Total spent on HR was kept within the budget limit. This was due to the reduction in employee acquisition cost and savings on HR infrastructure required
- There was no need to employ any one to handle HR activities. Employees were given facility to use self-care via an integrated platform. Employees can choose their own benefits program.
- Productivity improved as employees could leverage technology platform provided by TriNet to complete their tasks quickly.
In order to remain competitive advantage and attract talent, outsourcing HR activities to right partner is crucial. An Integrated HR solution provided need to have right expertise and skills to manage the diverse HR requirements of firms.