More companies seek to outsource a litany of former human resources tasks to outside vendors nowadays as many businesses hope to rein in costs and stay compliant with federal law and guidelines. This all means a great of number of enterprises seek HR Business Process as a Service (HR BPaaS) or cloud-based software systems to assist them with risk management as well as identifying the strengths and weaknesses in their current crop of employees, The Houston Chronicle noted. All of this goes to show how advantageous HR BPaaS is in today’s marketplace.
More companies, no matter how large or small, turn to HR outsourcing to keep costs associated with benefits and compliance in check. According to a report from the International Foundation of Employee Benefit Plans, which studied over 300 HR professionals, the average company outsourced 40 percent of its benefits work.
Moving benefits to the cloud
Outsourcing HR paper pushing tasks to cloud-based solutions frees up vital time for your human resources staff to examine employee efficiency, according to The Houston Chronicle. HR BPaaS streamlines the payroll, compliance and benefits paperwork, letting HR get back to identifying gaps in production. Your HR department then has the time to assist employees settle in to the company and help staff members succeed in their roles.
The majority of those enterprises surveyed sought outside help with employee assistance programs, flexible spending accounts and the COBRA health insurance law also known as the Consolidated Omnibus Budget Reconciliation Act. Companies also used third-party help for processing employee pensions and pharmacy benefits.
More expertise and improved efficiency
One of main reasons businesses continue to turn to HR BPaaS is the expertise these outsourcing vendors can provide. Many of the companies polled said they not only needed to reduce overhead and save money but also required the expertise an HR service could provide in regards to ever-changing benefits rules and regulations. A few employers noted they especially required assistance to remain compliant with areas such as employee absences and the federal Family and Medical Leave Act, according to SHRM (The Society of Human Resource Management).
Forming a bond and establishing trust helps both the business and the HR company, especially when it comes to finding good candidates for jobs and employee development. This means quality doesn’t take a backseat to quantity. The enterprise and the HR BPaaS provider invest in the long-term success of the company.
Looking for results
Not only do businesses that outsource some of their HR services want to reduce costs, they want to see results to their bottom lines and on how well the HR vendor does its job, SHRM stated. Instead of simply paying HR BPaaS for completing the time-consuming paperwork HR departments used to complete, more companies want a better working relationship with the outsourcing vendor.
It’s no longer just enough to find a viable candidate for an open position. Sometimes, an applicant looks good on paper and during the job interview, but doesn’t cut it once they start working for the company. However, a better and closer working relationship between the business and the HR BPaaS can avoid snafus such as these. Enterprises and HR vendors recognize a better partnership is advantageous to both.
Employers can reduce the amount of time-consuming paperwork, rein in costs, stay compliant as well as keep their companies on track by developing a working partnership with a HR BPaaS. Not only can these third-party vendors alleviate stress for your HR department, they can also provide you with metrics and quality results.
Nowadays, businesses wanting to remain relevant not only need cloud-based solutions to identify potential problems coming down the pike, they also need the HR vendor to be an actual partner for them. Many third-party vendors can process paperwork and help you fill positions, but demanding quality along with results means an enterprise needs its HR BPaaS provider to not just get the job done, but to get it done right.