HR outsourcing PPT

The Milestone Team October 4, 2021
Seven Functions of HR

When a human resources department is run efficiently, it provides a business of any size with structure and a way of properly investing in and supporting its greatest asset—its employees. HR specialists perform four basic functions that are vital to every successful back office. However, small to mid-sized businesses may not have the opportunity to have a large, internal HR department. Let’s review the options these businesses have for HR and what these four basic functions of HR look like. 

Can human resources be outsourced?

Yes! Human resources can be outsourced. The process of human resource outsourcing is easy and can be very beneficial to your business. Small businesses have learned that it’s possible to achieve the same level of efficiency and workforce management through outsourcing HR functions as they would have through a dedicated HR department.

What are the four basic functions of human resource management?

Some of the basic functions of HR outsourcing include staffing, learning and development, compensation, legal compliance, and employee satisfaction. Let’s take a deeper look into each of these basic categories. 

Staffing

Companies typically approach an outsourced HR company to manage staffing because they are looking to fill positions with quality applicants, or because they need recruiting best practices and expertise. Outsourced HR can lead the blocking and tackling of recruiting – they advertise job postings, source candidates, screen applicants, conduct preliminary interviews, and coordinate hiring efforts with managers responsible for making the final selection of candidates. They can also provide strategic expertise so a company can build a better internal recruiting process. 

Learning and Development

A key tool for success in any job change is the training and education a new hire receives as they learn a new company, its processes, and its culture. Many outsourced HR firms also provide leadership training and professional development. When someone takes a supervisor or manager role for the first time—either as a new hire or a promotion—this leadership training can help supplement that person’s skills and experience with practical information about performance management and handling employee relationships in the context of the department or broader organization.

Compensation and Legal Compliance

Compensation and benefits functions of HR can be handled by an outsourced HR firm. Compensation includes setting compensation structures and evaluating competitive pay practices. Payroll is the most prominent component of the compensation and benefits section of HR. As a result, payroll is one of the most outsourced administrative functions in HR.

Compliance with labor and employment laws is also a critical HR function. When a company falls out of compliance, the effects can be drastic and immediate, from employee dissatisfaction to potential accidents stemming from unsafe working conditions. The implications of these issues on productivity and profitability are considerable. Noncompliance can also result in legal issues at the state and federal level resulting in fees or, in extreme cases, for the business to be shut down. Failing to accurately document compliance with practices can also lead a company to be unable to adequately defend itself during a lawsuit. Outsourced HR firms are trained in federal and state employment laws such as Title VII of the Civil Rights Act, the Fair Labor Standards Act, the National Labor Relations Act, and many other rules and regulations.

Employee Satisfaction 

When HR is done right, it results in workers who are collaborative, engaged, and enthusiastic about doing their best work. But how do you know that your employees are feeling fully content about their jobs? One of the most effective ways to understand exactly where sentiment lies is to actively survey employees about everything from job satisfaction to morale and other topics where their insights could be invaluable. Outsourced HR firms analyze employee opinion survey results to develop action plans for the organization’s leaders to improve in areas that impact satisfaction and morale.

Download our HR outsourcing ppt

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Unleash your back office, outsource your HR with Milestone 

Every small business deserves to give the best to its employees. That is why we created Milestone, an outsourced HR firm that is dedicated to top-tier, compassionate, and detail-oriented HR support. Milestone is an Indianapolis-based firm with a national footprint. Our goal is to make our clients’ lives easier, provide transparent access to information, and give your employees the HR support they deserve.

Experience the difference today with Milestone and discover our flexible, no-hassle, outsourced HR solutions and how we can work together to fulfill your HR needs.

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