Companies can outsource HR functions fully or partially, bundling various aspects to an offsite vendor or retaining some tasks in-house. Factors considered include the level of sophistication required and the appropriateness of outsourcing certain tasks. High-touch management involves frequent contact between the outsourcing firm and the managers of the outsourced firm.
One method of outsourcing HR functions is to bundle various aspects of outsourced activities to an offsite vendor. Instituting a comprehensive distribution of human resource functions is another strategy that some companies pursue. Other companies may still decide to outsource by instituting a partial handover of HR responsibilities. Companies with global outsourcing initiatives that span multiple locations often require an outsourcing solution that can be scaled to manage a company’s globally distributed workforce. High-touch engagement is another strategy that can be used to outsource HR functions.
Grouping HR management activities in various configurations is a relatively common strategy pursued by outsourcing companies. Company directors may decide to outsource some housekeeping and management tasks while retaining others. Sometimes a company using this strategy will outsource tasks that are time consuming, require less training and certifications, or are tasks that can be done remotely. The other end of the spectrum, in terms of partially outsourcing HR functions, is to outsource various managerial tasks to consultancies, in order to tap into outside expertise and talent. A company may decide that business objectives are best served, for example, by maintaining internal performance reviews.
Choosing among the various options to outsource HR functions, a company can choose to take a partial or full transfer course. A partial transfer can range from an outsourcing strategy that maintains limited control over one or two HR functions, to a nearly complete transfer of HR management activities. Often, a number of factors are taken into consideration by companies considering these outsourcing options. These factors may include how much sophistication the outsourced activity requires, the opportunities and challenges of doing the work remotely, and how much control company management decides is appropriate. For example, work that requires a national security clearance may not be suitable for outsourcing to foreign workers.
High-touch management is another strategy that can be undertaken in outsourcing HR functions. This is when the outsourcing firm continues to engage in a significant level of involvement in managing human resource responsibilities. Such a strategic solution often involves the firm’s management personnel in frequent contact with the managers of the outsourced firm on a frequent basis. This may involve regular conversations with the outsourcing company’s senior management or advising the outsourcing manager on special situations, such as handling a worker’s grievance alleging abuse.
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