Human resource management is hardly considered part of a company's core activities. However, without proper care and attention to everything that concerns the beating heart of any enterprise - its people - the livelihood of the business will hardly be sustainable in the long run.
This is precisely what makes proper management of a company's resources indispensable, and it is for this very reason that many entrepreneurs decide to outsource this activity (HR Outsourcing), which requires specific knowledge and skills.
How does HR outsourcing affect human resource management?
HR Outsourcing is not only focused on talent search and retention. In fact, it can help boost the HR function as a whole, consequently improving corporate compliance. In fact, it ensures that managers and their entire team can focus on the most strategic aspects, instead of wasting valuable time trying to understand and comply with specific regulations and precise documentation.
In addition, Team Leaders can invest their time in another activity that is critical for talent retention, and one that is often left out in favor of more bureaucratic activities: communication. Consulting with their employees, asking them what works and what doesn't, what could be improved, and their opinion in general leads to building not only a better corporate climate and a stronger sense of belonging, but also to leaking important information that can represent added value for the company, even at the strategic level.
An external entity, specialized in HR and everything related to it, is aware of all the laws and their changes. Choosing to outsource therefore also means decreasing the risk of errors, which could lead to legal issues, fines and penalties.
What HR services can be outsourced?
Every entrepreneur, aware of his or her company's strengths and limitations, can choose to outsource HR management in its entirety or only in part. In general, the activities that an HR provider can take care of are:
- Payroll processing and employment law compliance
Running a business covers so many aspects that it often becomes exhausting to manage them all, especially with strict deadlines. An expert, who generates and sends payrolls, on time and accurately, makes managers' jobs easier and increases employee satisfaction. At the same time, you will be sure to comply with all current regulations regarding employee rights.
- Administration of company benefits
Employee benefits have very specific regulations that, if properly exploited, can also bring tax benefits to the company itself. Otherwise, the entrepreneur may risk incurring penalties.
- Business coaching
The Business Coach supports the business starting from the basic activities, providing the necessary tools for the company to bring good results. It is a path aimed at improving performance, stimulating innovation and filling any gaps in prior experience or skills.
- Employee relations and training
To foster employee attendance, participation and productivity, a good business climate is essential. Support from outside professionals can also be helpful in this regard, helping to guide them through difficult or risky situations for the company. For example, in a period of corporate change, the support of a change manager can make the difference between success and failure of the new direction taken.
HR and digital transformation: what are the benefits?
Digitalization has also had a consistent impact on the HR landscape, bringing with it technological advancements, new mechanisms and systems such as artificial intelligence and intelligent process automation that streamline work processes and ensure consistency.
HR-related technologies promise improved efficiency and significant cost savings, but implementing them is not enough for assured success: 20 percent of the value of a transformation is lost soon after it is implemented.
To achieve the long-term value given by digital transformation, substantial changes to the company's usual structure must be sustained and nurtured over time. Indeed, there are many companies that underestimate the effort required to obtain the maximum benefit of transformation.
This is precisely what makes it necessary not only to turn to an external provider that offers HR management digitalization service, but also to ensure constant both on the technical side, and on the human side, to accompany the brand and its entire team of employees through the transformation process.
At NFS Group, we provide an HR Consulting service that combines our many years of experience and the efficiency of Abacus, Switzerland's leading Enterprise Resource Planning (ERP) software and our technology partner, which saves time, reduces costs and manages your resources in an automated way.
We are by your side throughout the process: we don't just implement Abacus, we guide your company through the change management journey and help you take advantage of digitization to benefit from all the results it can bring.
Are you interested in leaner, simpler and more effective management of your human resources?