With margins getting thinner for everyone, a lot of businesses have begun to outsource their human resources initiatives or cut them entirely. Unfortunately, for the business that has to slash their HR budget, situations can arise where issues turn into problems and if there is no one actively doing the HR job.
What is the Role of the Human Resources Department?
Human resources is the department inside your company that is responsible for recruiting workers and training them on various things to get them integrated into the business’ workforce. They also handle all the administrative tasks that need to happen between employees and the business. Many times these people are also responsible for an organization’s payroll. This is a big job, and a crucial one if you hope to sustain a workforce that lasts and helps your organization see your goals to fruition.
Why Are Businesses Outsourcing HR?
Like anything else in business today, if it is hard to quantify the value of certain employees, it’s a solid business decision to try and cut your costs by outsourcing. Typically, an outsourced HR service will do everything that an in-house HR representative will, but it will be done less formally than they would should there be a dedicated employee (or employees) on staff.
HR itself doesn’t do anything to directly bring in revenue, but the support that it gives a business and its workforce is extremely important. Many organizations have run into some major problems with their on-staff HR departments that have facilitated the move to outsourced platforms. They include:
- Reports of toxic work environments
- Lazy and underwhelming recruiting
- A total lack of employee development
- No dedication to building a positive company culture
- A complete lack of coordination between business leaders and HR
For these reasons, many business owners and decision makers look on their HR staff as more of a nuisance than a positive part of their company makeup; another reason they choose to outsource these functions to a dedicated HR-as-a-Service (HRaaS) company.
About HRaaS
Most human resources departments have very specific functions they undertake and the HRaaS platforms replicate these using dynamic software. Effectively, these services allow businesses to track HR performance through a dashboard. The higher end HRaaS solutions provide the ability to customize a lot of the options on how businesses want to do them, but many are services that provide the basic functions of an HR team at a fraction of the cost.
The core benefits of moving to HRaaS is much like the benefits that North Central Technologies brings through our managed IT services: you get a budgetable cost that provides all the features of an onsite HR department. An HRaaS platform can help you:
- Attract and develop talent
- Maintain regulatory compliance
- Provide benefits and payroll administration
- Provide necessary employee training platforms
At North Central Technologies, we can actually help you build a more effective business through our vast knowledge of technology systems meant to support today’s business needs. If you would like to talk to one of our IT consultants about taking on new vendor relationships, such as integrating an HRaaS platform, give our experts a call today at 978-798-6805.
