The back-office operational Human Resource is often remembered by many when asked to describe the roles and responsibilities of the Human Resources department. In recent years, it is clear to many that these administrative activities are essential for any basic HR set up. As HR transactional activities can be cumbersome and take up much resources, many organisations have either outsourced these activities or shifted to that of centralised shared services.
Operational HR functions that are commonly outsourced are:
- Payroll and related compliances
- High volume mass recruitment and specialised searches
- Benefits and insurance administration
- Administration of employee lifecycle activities
- Labour law compliances
- Training on specific specialised topics
Although many of these operational HR functions have been outsourced, it would only be fair to say that the end-to-end process is only partially outsourced. Some parts of these processes will still be residing with the organisation’s HR. The advantage of the outsourced operational HR is that it will reduce the amount of work done in-house and the processes are more efficiently managed at the vendor due to economies of scale.
We are reminded Human Resources is not just all about the day-to-day transactions. These would not have been sufficient to ensure the organisation’s wellbeing. Human Resources is a strategic business function and as a strategic business partner to help align the workforce to the organization’s vision and strategy.
Strategic Human Resource Management
Today, HR takes its seat at the decision-making table. Armed with strategy and metrics, HR executives are playing a critical role in determining organizational priorities. Perhaps more importantly, HR is deeply involved in how those goals can be achieved via key HR functions, including employer branding, hiring, training, performance management, communication, engagement, leadership development and succession planning.
The lack of internal HR’s competency and experience is, however, a setback for organisations to be able to do Strategic HR well. Even when organisations have the capability to put in place its Strategic HR, we often see a need to benchmark against best practices and spar with thought leaders.
This is the reason why there is a growing trend in the outsource of Strategic HR to help the organisation build its workforce to strengthen its people management skills. The engagement may be one-off projects or long-term retainer. Many organisations find this HR model useful as it provides a fast way for the skills transfer to the workforce.
Strategic Human Resource Development
One-off projects for building the core Human Resources framework helps many organisations build the basic structure for the centre of excellence for its people. In the process of developing the projects, the People Managers are trained to provide strategic contributions to transform the organisation to level up its HR strategies. This includes the set up or review of the following:
- Selection and Recruitment
- Employees Onboarding
- Performance Management
- Learning Needs Analysis
- Career Pathing & Coaching
- HR Policies & Process Improvement
- Employees Communication & Engagement
- Talent Management & Succession Planning
For more information on the advantages of Strategic HR outsourcing and HR Project Management, please contact us for details.
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