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Companies can outsource human resource functions through complete or partial handovers, customized solutions for global workforces, or high touch engagement. Factors considered include task sophistication, remote work opportunities, and control.
One method of outsourcing human resource functions is to bundle various aspects of outsourced tasks to an external provider. Instituting a complete handover of human resources functions is another strategy that some companies adopt. Other companies may choose to outsource by instituting a partial handover of human resources responsibilities. Companies with global outsourcing initiatives that span multiple locations often require an outsourcing solution that can be customized to manage a company’s globally distributed workforce. High touch engagement is yet another strategy that can be used when outsourcing human resource functions.
Grouping human resource management tasks into multiple configurations is a relatively common strategy adopted by outsourcing companies. A company’s directors may decide to outsource some administrative and cleaning tasks while retaining others. Sometimes a company employing this strategy will outsource tasks that are time consuming, require less training and certifications, or are tasks that can be performed remotely. The other end of the spectrum, in terms of partial outsourcing of human resource functions, is to outsource various managerial tasks to consulting firms in order to draw on outside expertise and talent. A company may decide that corporate goals are best served by withholding performance reviews internally, for example.
When choosing among the various options for outsourcing human resource functions, a company can choose to pursue a partial or full transfer course. A partial handover can range from an outsourcing strategy that maintains limited control over one or two human resource functions, to an almost complete handover of human resource management tasks. Often, a variety of factors are considered by companies looking into these outsourcing options. These factors can include how much sophistication the outsourced task requires, the opportunities and challenges of performing the work remotely, and how much control the company’s 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 adopted when outsourcing human resources functions. This is when the outsourcing company continues to be involved to a significant level of involvement in managing human resource responsibilities. This strategic solution usually involves the company’s management team touching base with the third-party company’s managers on a regular basis. This could involve regular conversations with the outsourcing company’s management team, or advising the outsourcing manager on specific situations, such as dealing with a worker’s complaint that alleged abuse.
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