Benefits of outsourcing HR services to manage remote teams - PowerPoint PPT Presentation

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Benefits of outsourcing HR services to manage remote teams


One key aspect of why businesses outsource human resources (HR) functions is due to the experience of a good return on investment. By outsourcing HR functions, companies can save time and resources, which allows them to focus entirely on their core business activities. – PowerPoint PPT presentation

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Title: Benefits of outsourcing HR services to manage remote teams

Benefits of outsourcing HR services to manage
remote teams
Why is outsourcing HR functions for remote
employees needed more than ever?
One key aspect of why businesses outsource human
resources (HR) functions is due to the
experience of a good return on investment. By
outsourcing HR functions, companies can save
time and resources, which allows them to focus
entirely on their core business activities. This
blog explains several benefits of human resource
outsourcing (HRO) for your remote teams. Its
obvious that HR services are needed more than
ever due to the
emerging challenges and developments in business
environments after the COVID-19
pandemic. Handling remote resources in
post-pandemic business environments is
challenging for businesses, especially for small
enterprises. With the increasing acceptance of
remote working as the new normal, businesses
need to find different types of approaches to
handle their remote teams effectively. One major
challenge of remote working is the time zone
difference between the employer and employees.
As the internal employees are scattered across
different parts of the globe, setting a common
time for meeting and discussion for a business
becomes difficult. It is also more challenging
for an in-house HR department to manage the
administration of a remote team as well as those
employees working from the office in case of the
hybrid working mode. It would be an ambitious
task for an in-house HR team to handle talent
management and employee engagement if companies
need to recruit more remote employees. The blog
suggests that it is crucial for companies to
segregate the HR services for overseas employees
and manage them separately. This approach can be
more suitable for those businesses with a large
pool of remote employees across different
countries. What is human resource outsourcing and
why do businesses outsource HR functions? Human
resource outsourcing (HRO) refers to hiring an
external agency or third-party organization to
administer human resources on behalf of an
overseas company. It also means the transfer of
the HR responsibilities of the in-house team to
a third-party agency or expert. By outsourcing HR
functions, a business can improve its strategic
planning in addition to efficient day-to-day
administrative support. HRO includes a range of
services from employee recruitment to payroll to
risk management. An overseas company can easily
access a large pool of talent by outsourcing HR
services and extracting the maximum benefits of
these resources. With the right HR outsourcing
partner, a company can manage the remote team
effectively, which can help employee increase
their work efficiency.
  • There are multiple reasons why businesses
    consider HR outsourcing services. Although the
    cost-saving factor remains a major goal, many
    businesses outsource human resources for other
  • Availability of talented resources and the
    benefits of adding new experiences to the
    existing team
  • Access to new technologies and making the best
    use of technology to enhance time efficiency,
    expertise, and resource management
  • Ensuring risk management from economic
    uncertainty as locating some operations in
    another country may reduce greater risk exposure
  • Consultative service to leverage market
    intelligence and business strategy
  • Compliance with local laws and regulations
  • What are the different types of HR outsourcing
  • A handful of service providers offer human
    resources outsourcing to overseas companies.
    Some of the major service providers offering HR
    outsourcing are Professional Employer
    Organizations (PEO), Administrative Services
    Organizations (ASO), Software-as-a-Service
    (SaaS), Business Process Outsourcing (BPO), and
    Employer of Record (EOR).
  • Although there are differences in the way that
    these organizations offer services to their
    clients, their services normally come under three
    categories a single/individual HR service,
    group/selective HR services, and all-in-one HR
    services. The requirement of HR functions in an
    organization may vary depending on the size of
    the existing remote workers and its business
  • Some HR outsourcing companies provide customized
    services as per the clients requirements,
    especially those dealing with selective HR
    services. Some may specialize only in one HR
    service. Lets briefly understand the difference
    in their service offerings.
  • For instance, ASO provides services such as tax
    and insurance fillings but doesnt offer
    co-employment like PEO. SaaS companies offer only
    software and technologies that can help
    effectively manage HR activities. BPO offers
    selective services and some HR outsourcing
    companies offer a single service such as

  • payroll service providers. EOR, on the other
    hand, offers services such as payroll, taxation,
    and legal compliance in addition to HR functions.
  • Origin and evolution of HRO a brief history
  • Studying the origin of HRO service is complex as
    the events around the HR industry have changed
    remarkably due to new business environments and
    government regulations. However, many studies
    delineated the origin of the service back to the
    1970s when the concept of employee leasing came
    into practice in the US.
  • Over the following years, the terminology and
    concepts associated with employee leasing or
    staffing changed due to various policy reforms
    related to the industry. These series of
    developments helped in the massive growth of
    human resource outsourcing globally.
  • Globalization economic liberalization The
    beginning of the 20th century was a vital
    opportunity for many HR outsourced firms due to
    the new economic structure and business
    environments worldwide. The forces of
    globalization and economic liberalization
    ultimately led to open doors for cross-border
    trade and increasing economic cooperation among
    countries across the globe.
  • Payroll service automation The rising popularity
    of payroll service and the wide acceptance of
    payroll automation in the late 1990s was a
    significant development for HR outsourcing. With
    technological advancements, payroll automation
    enables human error in payroll processing,
    employee benefits, and taxes withholdings.
  • Third-party payroll services With the increasing
    demand for inclusive HR services and external
    resource management systems, third-party payroll
    services gained wide popularity. Gradually,
    businesses started shifting from domestic or
    local to offshore outsourcing companies for
    payroll processing and management. Payroll
    outsourcing became a popular aspect for
    businesses across industries.
  • Rise of PEO and ASO The rapid expansion of PEOs
    and ASOs in the late 1990s led to the
    development of various add-on services to
    transactional HR activities. The era has
    witnessed the emergence of many outsourced firms

  • offering skill development, training, motivation,
    etc. as services to improve the capabilities and
    talents of employees.
  • Business process outsourcing Offshore
    outsourcing gained wider popularity due to the
    successful running of BPO establishments, leading
    to the rapid expansion of HR outsourcing
    services globally.
  • Technology development The rising technological
    advancements in the 2000s and later decades have
    expanded the information technology
  • (IT)-based outsourcing for HR functions. For
    instance, recruitment process outsourcing (RPO)
    was the result of the massive growth of big tech
    companies. Also, many outsourcing HR companies
    emerged as technology and software service
  • What are the key challenges and developments in
    HR functions in the post-pandemic?
  • Many hadnt anticipated that the COVID-19
    pandemic would wreak havoc on such a large
    scale, affecting almost all businesses across
    industries. Several businesses, especially SMEs
    were forced to shut down their entire operation
    and some had to opt for furlough as a last
    resort for their survival.
  • For those that survived, there was only one
    concern how to continue business operations at
    a minimal cost. This led to the resetting of
    their existing policies and strategies to cope
    with the new challenges in their business
    environment. They had to consider every possible
    option to keep their business buoyant.
  • The post-pandemic business witnesses remote
    working as the new normal and the surge in
    technology footprint across industries. For many
    companies, managing a team remotely became a
    daunting task as they needed different approaches
    for handling the teams. Lets explore the major
    challenges and developments in the post-pandemic
    business environments that cause significant
    impacts on the HR functions landscape.
  • Remote working Working remotely becomes a new
    norm and a key aspect of the companys work
    culture in the post-pandemic. Companies across
    industries have started accepting the fact that
    employees prefer working remotely, especially
    from the comforts of their homes. The increasing
    acceptance of remote working creates additional
    burdens for the HR

  • department as they need solutions to ensure
    effective communication and engagement for their
    remote employees.
  • Gig workers Financial shortage of companies and
    massive layoffs of employees across industries
    during the pandemic led to the increasing demand
    for gig workers. As a result, the hiring of
    independent contractors, freelancers, part-time
    hires, and project-based workers gained prominent
    attention from overseas companies. Although
    having a remote team can be economically
    beneficial, many companies are facing challenges
    in managing their remote workers.
  • Technology and digitalization Technology
    innovation assisted businesses in handling new
    challenges in the post-pandemic. As companies
    rapidly shift their business operations online,
    they are expanding their digital footprint. This
    leads to the rising growth of cloud services and
    SaaS HR models. With the help of these IT
    service providers, companies can organize HR
    services virtually and manage their daily
    administrative tasks effectively. Technological
    advancements facilitate HR outsourcing companies
    to conduct e-recruitment and e-training of
    resources located in different places.
  • Employee engagement and motivation Restructuring
    HR practices to ensure better employee
    engagement and motivation of the remote workforce
    was a significant challenge for many businesses
    in the post-pandemic. Businesses handling remote
    teams are required to ensure the mental wellness
    of their employees besides providing their
    physical health benefits.
  • How is HRO beneficial for managing remote teams?
  • HRO services can be highly beneficial in managing
    remote teams in several ways. Some major ways in
    which human resource outsourcing services can
    help in remote team management are
  • Recruitment and hiring HRO services can help in
    identifying and hiring remote employees who are
    a good fit for the company culture and have the
    necessary skills and experience to work remotely.
  • Payroll and benefits HRO services can handle
    payroll and benefits administration for remote
    employees, ensuring compliance with local laws
    and regulations.

  • Performance management HRO services can help set
    up performance metrics and goals for remote
    employees and track their progress toward
    achieving those goals.
  • Training and development HRO services can
    provide online training and development programs
    to help remote employees improve their skills and
  • Communication and coordination HRO services can
    help in establishing clear communication
    channels and protocols for remote teams, ensuring
    that everyone is on the same page and working
    towards the same goals.
  • Compliance HRO services can ensure compliance
    with local laws and regulations regarding remote
    work, such as tax laws and data protection
  • Overall, HRO services can help companies to
    effectively manage remote teams by providing the
    necessary support and infrastructure to ensure
    that remote employees are productive, engaged,
    and aligned with the companys goals and values.
  • EOR way of outsourcing HR services for remote
  • You may also like to explore the way EORs offer
    HR services to overseas companies. In some ways,
    both HRO and EOR services can be highly
    beneficial for managing remote teams. While
    there are some similarities between HRO and EOR
    services, EOR services provide a more
    comprehensive HR solution for remote employees.
  • One key aspect of EOR services is that they also
    provide legal and regulatory compliance services
    in addition to the HR functions covered by HRO
  • Here, EOR is the legal employer of record for
    remote employees working for foreign companies.
    It means that EORs take on responsibility for
    compliance with local laws and regulations, such
    as tax and labor laws apart from offering
    services to help improve core HR practices for
    foreign companies.
  • The EOR model can be useful for companies looking
    to expand their operations into new markets and
    unfamiliar with local laws and regulations of
    such new territories. With an EOR partner, you
    dont need to worry about hampering the regular
    tasks of your remote employees due to time zone
    differences and the legal obligations of your

If you have a remote team in another country and
need a third-party agency to handle the HR
functions of your resources, EOR can be one of
the most lucrative options. With EOR services,
companies can ensure that their remote employees
are effectively managed and supported, regardless
of where they are located in different parts of
the world.
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