Introduction
Human resources (HR) is a very critical component of any business. Deciding whether or not to outsource Human resources is a very challenging question faced by organisations. Outsourcing is defined as the process when an organisation or a company instructs a team of individuals/an agency to take care of the human resource department of the organisation, as such jobs might be tedious and time consuming. For small businesses, creating and sustaining a human resources department can be challenging because of budget or resource limitations. The solution for many such companies has been to use human resource outsourcing (HRO) services. HRO companies cut the costs of hiring full-time HR staff while managing all facets of HR with domain experts.
From 2020, the demand for human resources outsourcing is set to increase. Research from Global Industry Analysts Inc., predicts that the global market for these services will reach $50 billion within the next few years. This increase is due to strategic changes made within many companies including restructuring their HR departments like cuts/lay off of department staff. Technological advances and specialized software have further reduced the need for in-house HR incumbents. Artificial intelligence in human resource technology is also influencing the growth of HR outsourcing.
Recent trends in HR indicate that HR Outsourcing is being perceived as a value added service. Many Business houses are finding it challenging to track all aspects of HR effectively- from HR policies & processes implementation to aligning job responsibilities to business objectives. This makes them look out for HR experts who can fill the operational vacuum and help the organization capitalize on their available resources.
What is non core to you is core to us
PACE provides end-to-end HR solutions which can be customized to suit the client’s requirement irrespective of the size & stage they are in. HR activities and interventions are performed as per Service Level Agreements keeping in mind the client’s unique organization culture. Pace partners on a Build operate transfer (BOT) model enabling the company to focus on their core business objectives.
Methodology
PACE understands that organizations with limited resources can find themselves overwhelmed by processes and procedures of HR & also keeping pace with the growing trends. The outsourcing engagement is facilitated by a team of HR professionals through careful deployment & employee development plans .We enable a system where the client leverages from it & is able to focus on their core business operations & strong margins.
PACE provides outsourcing services on different facets of HR. We have been supporting our clients for more than 10 years & bring in our collective experience to enhance the service experience. Milestones & timelines are driving forces that have enabled us in providing quality services consistently to each of our clients. Pace offers both models of outsourcing –
- Partial (covering key HR operational transactions) – Such an engagement includes managing selected HR functions.
- Complete (Running the entire HR department) – This includes managing the entire Employee lifecycle by performing all the HR Functions at the client site.
Key to success
The key to the positive impact of outsourcing a particular function will depend on proper identification of critical HR initiatives that can be observed & supported by the Outsourcing service provider, who understands the vision of the organization. PACE is just the right partner, as the team believes in bringing about a positive change in the client company without disrupting their unique culture & core Values. What cannot be measured cannot be managed.
PACE shall reinforce the processes throughout the engagement process of 36 months. On completion of 36 months, the client can decide whether or not to transfer the HR Dept. on a Build-Operate–Transfer model as mutually agreed.
HR outsourcing services typically follow one of two pricing models:
- A fixed monthly per-employee fee – payable every month.
- A percentage of each employee’s monthly salary as Management fees.
