Human resources also includes processes that are important but do not directly contribute to value creation. That is why more and more companies are outsourcing parts of the human resources area: because the savings potential is enormous in many places.
Regardless of whether you decide to outsource individual tasks or the entire area of human resources, it has a noticeable impact on the effectiveness and quality of work processes in various areas of the company. On the one hand, through indirect time and cost savings, and on the other hand, because companies can focus on their core competencies.
Increasing the effectiveness of HR managers
Starting in the HR department itself: preparing payroll, for example, is important, but equally a time-consuming task. It is also a recurring one, but it does not necessarily always follow the same pattern. If the legal situation changes, this must be reflected quickly and, above all, correctly in the payslips. If companies outsource the preparation of payrolls alone, this leads to enormous time savings and prevents payroll errors. This is because HR service providers are experts in their field and close to the market. They implement changes quickly and correctly, for example, in short-time work or annual financial statements.
The time saved also increases the effectiveness of HR managers. This is because they can use the freed-up capacities for other important tasks for the company’s value creation, e.g. developing new strategies, reviewing existing processes and adjusting them if necessary. They can push ahead with staff training, develop tactics for staff retention, recruit new (skilled) staff. In the long run, all of this contributes to increased quality of work and effectiveness throughout the organisation.
Savings in IT
Outsourcing also offers savings potential in other areas. The HR service provider provides a system that your own IT department no longer has to worry about. Updates, security, maintenance – the service provider takes care of all that. This reduces costs and frees up capacities for the administration of your own IT infrastructure. It is important for the entire company that it runs smoothly.
HR service providers can deliver SAP-based, multi-client platforms as well as a customised SAP system. Other systems can be connected via interfaces; this simplifies work processes and ensures constant data quality. Both, in turn, contribute to an effective way of working and save time and therefore money.
Potential of cloud-based outsourcing
Storing sensitive data in the service provider’s cloud instead of on the company’s own servers increases the security of this data and relieves the IT department of even more work. After all, it is often impossible for companies to cope with the high data security requirements themselves. Reliable outsourcing providers, however, are also professionals when it comes to data security and provide data centres that are fail-safe. In the service provider’s cloud, your data is always protected from unauthorised access.
A cloud also has the advantage that employees can access the data stored there regardless of location. This enables more flexible work and ensures that in a crisis such as the Corona pandemic, work can be carried out effectively and without additional inconvenience.