HR Outsourcing

Which Kind of HR Services Shall Suit Your Enterprise?

Kinds of HR Services Suitable for Enterprise

What all things constitute HR services?

• Payroll administration, including produce checks, handling taxes, and dealing with sick time and vacation time.
• Employee benefits, including health, medical and life insurance, cafeteria plans.
• HR management, including recruiting, hiring and firing along with an investigation into background verification after interviews, exit interviews, and wage reviews.
• Risk management, such as office policies and handbooks, workers’ compensation, dispute resolution, and safety inspection.

What is meant by Small, Mid-sized enterprise?

1. Manufacturing Enterprises

It is engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the Industries (Development and Regulation Act, 1951) or using plant and machinery in the process of value addition to the final product.

2. Service Enterprises

It is engaged in providing or rendering of services and is defined in terms of investment in equipment.

Manufacturing Sector
Enterprises	Investment in plant & machinery
Micro Enterprises	Up to 25 lakh rupees
Small Enterprises	More than 25 rupees but less than 5 crore rupees
Medium Enterprises	More than 5 rupees but less than 10  crore rupees
Service Sector
Enterprises	Investment in equipment
Micro Enterprises	Up to 10 lakhs rupees:
Small Enterprises	More than  10 rupees but less than 2 crore rupees
Medium Enterprises	More than 2 crore rupees but less than 5 crore rupees

Ways of availing the HR services?

It can be availed in following forms:

1. A Professional Employer Organization (PEO)is nothing but a co-employer of the company and assumes full responsibility for the company’s HR administration. The PEO has the full power of hiring and firing of employees and does it with responsibility, deciding on what package is to be given to a candidate. The PEO and business owner work for hand in hand nothing but like partners.

Business Process Outsourcing (BPO) as the name itself suggests it’s an outsourcing in all fields, not just HR. A BPO would make sure a company’s HR system is supported by the latest technologies, like self-access and HR data warehousing.

Application service providers (ASPs) host software on the Web and rented to users. They run through software programs which can manage payroll, benefits and more.

E-services are those HR services that are web-based. Both BPOs and ASPs are often referred to as e-services.

Which type of HR service shall best suit to small, Mid-sized enterprise?

Opting for e-services will benefit you in a way that the software is not required to be bought they have their own software and they shall install it, and no need to worry about configuring it or addition of software or installation.

An in-house HR person handles many things which are may not be counted in numbers and which cannot be provided by an outsourcing service like looking into group offerings, building employee incentive programs, employees’ birthday’s other employee engagement activities.

In case of BPO, the payroll, PF return, other tax-related work can be handled irrespective of a number of employees also error are less as most of the things are system driven.

Hiring somebody as PEO is best suited for an organization which is in the requirement of a person taking hold of all the HR functions and relieving the employer from employee management activity. Choosing a PEO, you can pass the legal responsibility of your employees onto them.

Basically, the e-services that are BPO and ASP being online services tend to be limited in their offerings, but you’ll get added options like will allow you to view information (like benefits packages), web access, and even make changes to such information online. Shall introduce benefits plans, enroll in benefits, read policies, and make changes to current data.

Hence choosing which type of HR service will suit your organization will totally depend on firstly the kind of attitude and goal the employer have while putting up an organization, and the way employees want to run the company, if the employer wants to give it a personal human touch then the employer will go for hiring an HR on rolls or can go for PEO, Secondly for if an employer wants to avoid the liability of enrolling HR(s) he shall opt for e-service.