Employee outsourcing: what you need to know

Outsourcing has been a popular choice for all business types, sizes and industries, as it allows companies to benefit from organizational flexibility, improved efficiency, reduced overheads and a hassle free HR management. However, employee outsourcing is an option that is less known and utilized. In this article, we break down employee outsourcing, what it is, who can use it and what the benefits are.

What is employee outsourcing?

Employee outsourcing allows companies to outsource certain HR operations to a third party, such as; recruitment, hiring, training, payroll and more. This can be for a project, short or long term and even permanent basis. An employee outsourcer can manage the human resource responsibility for your workforce, allowing you to focus on your core competencies.

Who is employee outsourcing for?

Employee outsourcing can be used by organizations of any size. Often smaller organizations utilise this service because it is a more cost effective way to offer high quality human resource services to their employees. However, large companies can also benefit from using employee outsourcing as it increases efficiency and improves organizational flexibility.

What services can an employee outsource provider offer?

  • Recruiting, hiring and outplacement of employees.
  • Completion of joining formalities, background checks and verifications
  • Maintenance of personal files
  • Processing of salaries and pay packages
  • Medical benefits / insurance management
  • Prerequisite handling
  • Terminal benefits management
  • Work visa management
  • Training needs analysis and facilitation

What are the benefits of employee outsourcing?

  • Greater organizational flexibility
  • Improved efficiency
  • Reduced overheads
  • Hassle free HR management
  • Reduced administrative work and reporting
  • Better benefits for employees
  • Faster hiring of employees