Here, we will discuss how outsourcing HR services can help a business but analyzing all the pos...
What all things constitute HR services?
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.
It is engaged in providing or rendering of services and is defined in terms of investment in equipment.
|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|
|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|
It can be availed in following forms:
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.
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.