Human Resources is, as William R. Tracey defines in “The Human Resources Glossary”, “the people that staff and operate an organization.” While a human resource refers to one person or a single employee within the organization, human resources is all of the people employed.
Another implication of Human Resources alludes to the organization’s function dealing with the employees and issues related to the employees. Compensation and benefits, recruiting and hiring employees, onboarding employees, performance management, training, and organization development and culture are a part of the Human Resources designation.
In addition, the Human Resources staff take responsibility for advising the senior staff regarding the impact on human resources (the people employed) of the financial, planning, and performance decisions.
Now, people have been hearing the word “outsourcing”. It is quite a popular term but quite a few are still confused as to what it really is. Fortunately, what you are about to read is all about the basics of outsourcing.
When it comes to hiring employees, some companies, rather than hiring people directly, would prefer to ask another business party to look for workers instead. That is called outsourcing. Instead of in-house employees hiring potential co-workers, they request an outsourcing company to hire for them. To make it more simple, company A asks company B to hire employees for company A. Or, company B hires employees for company A. Yes, that makes more sense.
Outsourcing tends to involve a wide range of jobs. It can go from customer support to manufacturing to back office.
It was first recognized in 1989 as a business strategy. In the 1990s, it then became an important part of business economics. Many countries are still not in good terms with the concept, especially since it causes the loss of domestic jobs. However, there are some who say that there is a creation of incentives for businesses and companies. Outsourcing aids maintain free market economies on a global scale.
What happens when you mix those two together?
Human resources outsourcing then becomes one that hires companies to manage personnel functions, such as the administration of health benefits, retirement plans, and worker’s compensation insurance. This also involves hiring, training, and legal expertise.
HR outsourcing helps limit the fixed cost of managing employees. Firms tend to be more efficient due to the talent and infrastructure already available.
Of course you would like to have as many employees as you can possibly have to help your company grow and become as fruitful as other companies, especially your rival ones. However, if you do not have the budget, and if you are still a small or starting-up company, it is hard to find the right people. Luckily, an HR service Melbourne will definitely help your company with your employees as well as your budget.