In my experience of over two decades in this domain of HR, I came across many promoters who wish to scale up businesses (INR 100 – 500 crore) and who see HR as a subtle, yet powerful medium to ready the organization for growth. You need to align HR with the business to ensure that it adds value to business growth.  However, getting good HR leaders to join smaller or scaling up organizations is somewhat a challenge – from attraction, retention and engagement viewpoint.  This is where HR Outsourcing (HRO) comes into play!

HRO enables businesses to focus on their core business and rely on experts to build and scale-up the HR function.  Many people tend to think HR Outsourcing is ‘cheap’ and therefore opt for that model. While there is certainly a cost-advantage, there are many more value-adding benefits to derive from HR Outsourcing. One should not miss out on the strategic value of outsourcing while just chasing the ‘cheapest service provider’ in the town!

Here are the top five strategic benefits of HR outsourcing that can add value to growing organizations (there may be others, but I am speaking from my experience of running HR Outsourcing accounts):

Strategy to Execution –

We normally derive the HR strategy based on the long, medium and short-term strategic objectives of the business. Further, the HR Outsourcing scope includes execution as well; what is a strategy without proper implementation? 

Result-oriented approach –

In the outsourced arrangement, we adopt a projectized approach and therefore is designed to deliver results with specific goals and milestones pre-defined.

Knowledge Repository –

Every aspect right from strategy, systems & processes, daily operations shall be documented and this becomes a natural course to build knowledge within the organization for future sustainability.

Strength of a team and a higher impact –

Hiring one senior HR leader cannot build or address all your HR needs. On the contrary, we as an HR Outsourced partner deliver as a team by leveraging diverse expertise and the impact of the results on the ground is quicker and higher.

Flexible Models of deployment –

In the HRO model, seasoned resources work with business leaders of the organization and yet the organization does not have the burden of such resources on their payrolls. These are time-bound arrangements, with knowledge transfer and support options. HR Outsourcing that way offers a lot of flexibility.

For these above reasons and many more, our clients usually sign us up for a multi-year contract and experience tangible results. We surely believe that the growth of our client’s business is a sign of our success!

Author is Seshagiri Pattamatta, Partner & Champion – HR Services @ HR Footprints Management Services (giri@hrfootprints.com / hrfootprints.com). These are are his personal views and opinions.

Wondering how HR outsourcing can add significant value to your growing organization? Let’s explore the potential together. Take the first step towards more efficient and effective HR management—reach out now to see how we can help!