Key Reasons to Outsource Human Resource Functions

The human resource scenario has dramatically changed across the globe. With the high turnover of employees, the changing laws and regulations and the stiff competition that prevails in the market place has made HR management a very difficult function for any business.

Each company plans strategies to improve productivity and cut costs in order to yield profits. Recent studies have shown that outsourcing human resource functions has benefitted the large as well as the medium sized enterprises which were earlier being handled by an internal employee.  Availing HR services has proved cost effective by reducing the company time that was being invested in HR handling which is now effectively used to focus on the core business.

5 key reasons why companies should outsource HR functions to human resource service companies

1. As companies have a global presence, the HR needs have become highly complex, which leads to higher costs. Standardizing the process of management of human resources improves the overall functioning of the organization
2. Running an independent human resource department is turning out to be costly. Employing HR professionals and availing their expertise is a huge expense that companies incur. Outsourcing the HR department is one of the major reasons for the growth in profit as employee management costs are drastically reduced
3. Companies providing HR services have access to the latest technology and tools. They understand the HR needs of every organization and provide the right candidate for the job on temporary or permanent basis
4. Recruiting top talent is an art in itself. Leading Human Resource service companies have a pool bank of professionals and talent. Outsourcing this function ensures that the company gets the best professional who is capable of handling the critical functions at the office efficiently
5. With the dynamic laws and regulations of the state, it is extremely difficult for the company to comply with the ever changing laws and regulations. Non compliance results in a hefty penalty which is a direct loss for the company. Outsourcing HR services ensure that every regulation and policy is followed as per the law.

Leading and well reputed HR service companies like Gojacor is a one stop shop for all human resource management needs. Whether you have questions about hiring, benefits, training or concerns about complaints and compliance, we are the leaders to handle all your HR needs. Let the experts handle your critical HR functions which lets you focus on your core business. Contact us now for your human resource needs.

Source:  http://gojacor.com/

Why is it beneficial to outsource human resource management?

A silent transformation is visible in the employer-employee relationship.  Managing the human resources is one of the more tricky kind of management which has to be critically handled from the psychological aspect.

The success of an organization depends upon the successful management of the employees that is the biggest asset for any organization, whether big or small. With the shift in the relationship, knowledge management has emerged as the new key to human resource management. Frameworks are developed on the basis of individual-level knowledge sharing research. Emphasis is laid on the five areas which include: 

• Cultural characteristics
• Individual characteristics
• Organizational context
• Team and interpersonal characteristics
• Motivational factors

Human resources are the most important assets for an organization as motivated and satisfied employees play a major role in the development of a sustainable competitive advantage. Outsourcing the HR by entering into a strategic partnership with a human resource service provider ensures that edge for the organization.

How outsourcing HR benefits the organization

The topmost reason to outsource HR is to save money.  Functions of the Human resources are non-revenue generating though a complete department has to be devoted to managing the human resources. It is one of the most strategic departments on which depends the success of the organization. Once the HR is outsourced to a leading HR management provider, it reduces the overall labor costs.

Reason number two is, the business strategists can focus on developing the core business strategies rather than being bogged down by functions of the HR department. HR functions include recruitment, payroll, compensations, 401k Administration, health benefits to list a few. This barely leaves any time for planning the business. Outsourcing HR frees up almost 23% of the time, which can be used for strategic planning.

Understanding the psychology of the employee determines how beneficial the employee will be for the business. Appointing an expert to understand each employee is a huge expense. Leading HR management companies not only conduct background checks but also conduct psychological analysis regularly to ensure that the employee is the right person for that job.

Another reason to outsource HR is improve compliance with the ever-changing regulations and laws.  Compliance with the Affordable Care Act, accuracy in payroll and taxations avoids penalty and gives a feeling of security to the employee as well which ultimately motivates him to work better.

With the advancement in technology, it is a huge expense to train the staff to match the technological needs. When HR is outsources, knowledgeable and trained staff is deployed which ultimately makes better business sense.

Whether it is a small company or a large business house, outsourcing human resource management opens up many avenues for the companies. Not only does it reduce the labor cost and training cost, but helps to take the company to the next level. 

Source: http://gojacor.com/

Understanding Attitudes and Behaviors of Human Resources

For the success of a business the human resources play a major role. Skilled, talented employees with the right attitude and workplace behavior are the key assets of a business to be successful. Most of the startups or small businesses face the major issue of high staff turnover. This affects the growth of the organization negatively along with a reputation that deters the talent to join the business house.

Identifying the right candidate by behavioral and psychological test method besides the skill and qualifications ensures success of the business operations. HR group companies offer trained, screened and skilled staff that are just right for the business success.

It is possible for any business to set up an HR department and conduct various tests to screen and test the candidates and then appoint them. This becomes a very high expense for most businesses which forces the person to shift focus from the core business. Outsourcing HR requirement is the best alternative available today, especially with the every changing laws and regulations in the USA. HR group companies in Medina, Ohio specialize in providing staff which is well trained for any job vacancy.

The biggest scam of job searches is the lies on the resume. Almost 46% of the candidates commit a resume fraud which goes undetected unless you are a trained HR consultant.  The common lies on a resume are:

• Exaggerating work accomplishments and skills
• Enhancing the job titles and job descriptions
• Fudging the academic qualifications
• Fake credentials
• False reference
• Omitting some information like past employment
• Wrong information on work dates which are usually stretched/extended

Most job seekers attempt to cut corners to grab that dream job. Eventually they are caught, but it is the business that suffers the most. Hiring through HR companies ensures scrutiny of the candidate with the assurance that the candidate is right for the job. The process of recruitment is highly crucial for filling any job vacancy. A reputed HR group Medina, Ohio will ensure that the candidate selected has a clean background plus all the medical, social and other compensations are taken care as per the laws of Medina Ohio. 

Leading HR companies conducts various tests to understand the psychology of the candidate and in consultation with the business house, they identify the kind of employee required for that job/post. Understanding the behavior and attitude of the candidate ensures that the right person is placed at the right job which ensures satisfaction for the employer and the employee.

Either set up your own department with trained and experienced HR managers or outsource your HR needs to leading HR companies who will supply you the right candidates without the hassle of managing the human resources.

Source: http://gojacor.com/

Why Outsourcing HR has Become Necessary in Ohio

Human resources or HR is an indispensable asset for any organization or business. No matter what level of automation or mechanization is brought in, people will be required for a lot of functions that are carried out in an organization.

The awareness of multiple and better job opportunities has resulted in a high employee turnover. The ever-changing laws and regulation, maintaining records, paying compensation and now the transition to ICD-10 appears to be an overwhelming task.

Every business is forced to maintain a separate HR department to handle all employees needs which add to the operating cost. Why not cut down on this cost and focus on your core business without any stress?  Leading Ohio HR companies are the simplest solution for all your human resource needs. No matter what kind of business you are running, professional HR companies will provide the staff as precise as you require from it data base.

HR companies use the I-O (industrial psychology), which is a scientific method to identify and sort the issue at the workplace that is related to the human resources. According to the study by the Society for Industrial & Organizational Psychology, the employees are tested for various aspects of their psyche and skills.

• 13% employers use personality test
• 20% employers use cognitive ability test
• 29% employers use psychological assessment
• 41% of employers test the employee on math or literacy skill
• 68% employers test for job skill

It has been found that 34% of the applicants normally lack the skill that is required for the job which ultimately affects the work/business negatively.  The need for training arises which is again a big expense for the business. After the employee is trained, there is no guarantee that the employee will continue working for your organization. In addition to recruitment and training, paying compensation, leaves, health benefits and maintaining employee record is an added stress for the business.

How to choose an HR outsourcing company

Choose an HR outsourcing company that handles the following which will lead to your business success:

• Handling and processing of payroll, taxes, deductions and giving you detailed payroll reports
• Maintains detailed files of the employees, including background checks, drug/alcohol screening, motor vehicle records and compliance with local, state and federal laws
• Offers workers compensation and works on prevention of loss by customizing client specific safety programs
• Extends all health care and retirement benefits to the employees that are outsourced by the business

Find an HR company that investigates the critical relevance of human resources to the society, business and the individual. Reputed and established HR companies provide you the right candidate as required for the job at your organization, handle all employee related tasks including compensations which leaves you free to focus on your core business. Outsource your organization’s HR requirement and watch your business grow. 

Source:  http://gojacor.com/http://gojacor.com/

Benefits of Services Offered by HR Outsourcing Companies

Human resources are an asset for any organization. The success or failure of an organization depends on its human resources which have to be handled as an independent but integrated entity. Every organization must design it operations to keep in mind the function of HRM or human resource management which are planning, organizing, staffing, directing and control. The satisfaction of an employee is the biggest motivator for the employee to perform better which ultimately leads to the success of the organization.

The laws and regulations of USA compel every business house to devote a lot of time for HRM which automatically shifts the focus from the main line of business. Earlier HR meant hiring, firing, payroll and settle a few ruffles. Since 1970, managing human resources has become extremely challenging as compliance with various laws 401 (K), regulations and health care benefits for the employees, disabilities act, family and medical leave act and now Obama Healthcare act has become mandatory. This not only takes up loads of time of the employer but pulls back the organization, increases the overheads of maintaining an HR department which ultimately reduces the profits. The secret of success in today’s scenario is utilizing the services of HR outsourcing companies.

Reasons Why businesses choose to outsource HR

·         To save money by reducing operating costs

·         To focus on core business strategy planning

·         To improve compliance with the ever-changing laws and regulations and thereby reduce legal risk

·         Take advantage of technological advances to streamline HR functions

·         Lack of in-house HR knowledge and experience

·         Use HR expertise for smooth running of the business

·         Reduce HR staff and related expenses

The HR functions that most businesses outsource are:

• Background check of the employee
• Employee relocation
• Payroll administration
• Retirement benefits
• Healthcare benefits
• COBRA administration

How to identify when you need to take advantage of HR outsourcing companies services

The laws of the land have made it difficult for a small or medium business house to handle HR. Outsourcing the HR needs is worth the time and money that a business spends.  It is time to cut down on your expense and outsource your companies HR needs when:

1. You observe a drop in productivity
2. Higher rate of absenteeism amongst the employees
3. Higher turnover of the staff
4. Penalty that you pay or notices you receive for non compliance with the laws

If you observe any of these symptoms, it is time to outsource the companies HR functions to HR service providers.

Conclusion

HR outsourcing companies help you save money, helps you to run your business as usual without the stress of handling HR issues, avoids staff turnover so you don’t have to go through the hassle of training the new staff, which reduces your overheads and if your business requires new skills, the HR company will provide trained staff which ultimately helps your business to evolve.

Source: http://gojacor.com/