It can be tempting for a business to dole out the repetitive and menial tasks that are related to Human resources onto third parties; however, there are a few considerations regarding HR outsourcing that you may not expect.
HR outsourcing is having all or some HR activities of a company implemented by a third party. It’s usually the most cost-effective option for business, plus it helps in the reduction of overhead of setting up and managing a fairly large team. A business that is outsourcing to HR professionals in UAE also allows the HR department of the business in focusing on more strategic efforts rather than daily and time-consuming activities. It’s also a very attractive choice for SMEs that don’t want to deal with the hassles associated with managing important services internally like payroll and benefits.
Businesses in the country often outsource the processes that are not as critical to the business, as well as the tasks that don’t contain any confidential details regarding the business operations. But, businesses may also outsource certain updates to the processing of payroll or employee compensation. Managing pensions, benefits, jobs and personal data changes are the most common kinds of responsibilities that are given to third parties to take on. Some businesses choose to acquire HR outsourcing services in UAE from only a single provider; however, there are those that utilize several different vendors that are specializing in certain processes.
Here are a couple of issues that you would want to fully understand when deciding on HR outsourcing in UAE:
Which HR Functions to Outsource
First and foremost, there is a need for you to be very specific on the activities that you wish to outsource to professionals as there’s a number of transactions and activities available for you to get assistance with. Think about the biggest challenges of your current HR team. Look at the transactions that they’re performing often. You’ll also need to think regarding the areas wherein the HR team you are retaining does not give a lot of input in like benefits enrollment or answering the queries of staff members.
Typically, an HR outsourcing service provider in UAE can’t take on every single aspect that you need for your business. The team will be needed still in running strategic aspects of your business like people analytics, employee experience analytics, and talent acquisition, or recruitment strategy.
HR outsourcing in UAE provided by seasoned professionals will provide you with guidance and expertise that did not exist within your organization previously. This can process your business runs being legally compliant, standardized, and/or effective and efficient.
Whether the Business Should Follow Standard Procedures
In a lot of cases, HR outsourcing requires the business to adopt certain standardized procedures that are used by the outsourcing service provider. Service providers have certain processes as they allow them in delivering efficient and effective services at the price which makes them cost-effective. Make sure you are ready in deciding whether you’d change to their processes or stick with the ones that you already are utilizing. If that is the case, then you should talk to the service provider you are potentially hiring.
Cost Versus Quality
While low prices would be the most attractive option for you when it comes to HR outsourcing in UAE, it’s important that you remember low prices have an effect on the quality of the services that you get. Without the correct level of service from your service provider, it is more likely that you run into a couple of issues e.g. incorrect payroll runs, stalled workflows, and mistakes or inaccuracies in company data.
The negative experience will also have an impact on the retention of staff members and the motivation of your employees. If the service provider does not deliver also, you will most definitely experience incorrect processing. There’s also the risk of the inability in filing compliance reports as well as making legally mandated payments late, costing your business a lot of money.
When you outsource, we suggest you trust the ones that have a great reputation in the UAE and the one that is also established.
Local regulations govern privacy for company data and employee data in the UAE. As that’s the case, it is important that HR outsourcing is done in the UAE and with a service provider that’s operating within the country as you will get strong pushbacks when you outsource transactions which store sensitive company data outside where your employees are located.
If you want to know more regarding HR outsourcing in UAE and the best way in making sure your business benefits the most out of it, call us here in Payroll Middle East! We would love to address your concerns and challenges with HR outsourcing.