Outsourcing HR Functions: What You Should Know

In the competitive business environment today, it would be wise for businesses to take advantage of every single thing that they can. If you are running a business in the United Arab Emirates, it is best that you seek an edge through outsourcing HR functions. HR services in UAE are excellent options and they come with various benefits.

Read More: HR Outsourcing Benefits in UAE

What is the outsourcing of HR?

HR outsourcing, if you don’t know already, is handing human resources functions to experts for management. Myriads of businesses in the country already know that they are able to gain massive benefits just from outsourcing the non-core functions of an HR department to specialists. Instead of keeping HR employees as inhouse staff, outsourcing HR offers businesses, regardless of size, the maneuverability, and flexibility in the administration of everything related to HR, including payroll.

Why should I outsource HR functions?

There are clear benefits as to the outsourcing of HR functions, core or non-core. As you are contracting with specialists in the industry, that means you are tapping into both talent and network with expert skills and knowledge. This means fewer errors as well as more streamlined processing, cutting down the cost to maintain a smooth operation of a business.

Imagine payroll mistakes which accidentally paid staff members too much – this will mean the business would have to gain back payments. The HR staff may also spend a lot of them in fixing the mistakes, resulting in higher costs and lost productivity for the business. Although the business may still experience mistakes with an HR service provider, specialists often provide a guarantee which means they will shoulder the costs. In addition, specialists are equipped with tools and know-how in keeping errors at an absolute minimum or even non-existent.

It is also important to remember that outsourcing HR functions mean that a business no longer has to maintain an HR department inhouse. If only non-core HR functions are outsourced, the business has a lesser number of HR staff members. This means the business is able to save costs as a few staff members also mean a few benefits that require paying out.

Subcontracting some functions for HR also means flexibility for the business. During busier times, specialists may offer resources onto the business – they can then cut back as things become slower. For most businesses in the country, scaling up during the busiest time each month then scaling back as slower periods arrive may be hampered with cumbersome hiring and firing processes. This makes it incredibly difficult in maneuvering a business environment that is ever-changing.

What about the costs?

Most businesses are concerned regarding the cost associated with outsourcing HR functions. You will be glad to know that outsourcing the tasks of an HR department is more cost-effective. You will have the flexibility with HR services in UAE and that means scaling down or up is more simplified. Cost commitments will be less with HR outsourcing in comparison to hiring a full HR department. This is partly because you are paying for staff members that are based either on flat fees (paying the same amount even when you are busy) or based on resources that you are using or consuming (the business pays more as more tasks have to be done and less when lull times arrive). Also, there is no need for the payment of benefits, which takes a lot out of the bottom line of business.

When it comes to productivity, there are also a lot of savings in terms of cost. Outsourcing non-core HR functions basically means the in-house team will be able to focus on more important tasks or the core functions of the business. More will be able to get accomplished. A specialist also allows for a streamlined procedure plus the expert makes fewer errors with expertise and tools. This essentially translated to much higher productivity for the business.

What HR functions should I outsource?

Many businesses in the UAE look in outsourcing the non-core functions of an HR department such as benefits administration, payroll, and time-keeping. Many of the processes require a well-trained HR department as there are likely to be difficulties. Difficulties result to spending lots of resources in just one task, and even committing costly mistakes. With the outsourcing of HR tasks, you’re allowing your staff members in focusing on the core competencies of the business. You can even rely on a specialist in the recruitment of staff members as applicant search and the hiring process are often intensive.

You may also read: What Businesses in UAE Need to about Employee Payroll Records

Should I outsource HR tasks to specialists in UAE?

The move towards outsourcing HR tasks – whether it is a specific function or an entire department – is often a huge decision for a business. Still, outsourcing offers myriads of benefits. Send us a message if you wish to know more about HR services in UAE.