If you have ever been to some of the commercial states in African countries, you would discover not only the magnificent buildings hosting employees where some of the most skilled workforce are, but also the level of positive energy people within the environment carry. In Nigeria, we can find some of these large corporations with offices in Lagos and Abuja.
A look at these edifices with thousands of employees spread across the continent can make you wonder how employees are properly managed, as well as how the companies have managed to become increasingly productive over the years.
From our previous articles on human resources; key functions of HR, and other crucial points explained in managing employees and performance management, we saw how HR outsourcing could be used for small companies in Nigeria. In furtherance to that, we will be looking at HR outsourcing for large companies.
As previously defined, HR outsourcing involves a process whereby a company hires the services of specialists or professionals to perform human resources functions. The services rendered could be in different aspects of human resources operations, such as onboarding, training, payroll services, or the entire human resources functions.
HR outsourcing is not limited or restricted to a certain place, it is a practice that is exercised in other parts of the world. While we already know that a small business due to the challenge of meeting the financial compensation of its staff as a result of unavailability of work might be compelled to seek out an external hand in managing employees and effectively handling actions related to human resources.
However, for larger companies, the reasons for outsourcing HR is distinct from that of small companies.
HR Outsourcing for Large Companies
First, we must establish the fact that HR outsourcing for large companies is possible, it is something that takes place in companies in Nigeria and other places in the world.
HR outsourcing for large companies that you may have come across or whose brand you patronise is done for many reasons. The reasons why these companies outsource HR is what our post will focus on.
Expertise
Expertise is found in different professions and is needed to achieve organisational goals. In outsourcing HR, a benefit that large companies get in return is gaining expertise which is not readily available internally. If there is a need for large companies to outsource HR, they know those things that are not present on their team, such as, a streamlined HR process, expertise on HR functions, and other issues related to payroll and recruitment of talents.
Cost Savings
While it is possible to assume that only small and midsize companies are focused on saving costs, it is important to regard the thought that anything small and midsize companies want to do to succeed, large companies are willing to do more. If it is cost-effective, just believe that large companies will do it more!
Of course, we know by now that the rich want to get richer. And since outsourcing HR is proven to be cost-effective, it is employed by large companies too.
Comprehensive Benefits
In addition to being cost-effective and offering expertise, outsourcing HR presents large companies the opportunity to provide comprehensive benefits to employees. Large companies know that even after the best talents are employed into the workforce, keeping them motivated through timely compensation on benefits and bonuses is vital.
For large companies to be competitive in a dynamic market, providing comprehensive benefits is critical.
Growth and Success
Beyond growing, it is the goal of every business to be successful. Large companies outsource HR as they grow. As a company that is bound to expand across states and regions, complying with both local and foreign laws regarding employees and labour is critical.
Outsourcing HR helps these companies to navigate the complexities that accompany the laws in the States where their businesses are represented.
Also, issues related to hiring, onboarding, and training are properly addressed since the outsourced team consists of professionals.
Technology Inclined
Because the outsourced HR team is technology inclined, large companies are rest assured of data privacy and security, secured platform, offering the best HR practices on a single interface provided through a software.
During the course of embracing outsourced HR services, large companies have discovered that burdens associated with human resources management that prevents the internal workforce from being readily productive is eliminated, leaving room to achieve more organisational goals and remain competitive.
