Benefits of outsourcing HR services to manage remote teams

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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
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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.
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• 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
  motives.
• 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
  providers?
• 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
  nature.
• 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

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• 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

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• 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
  providers.
• 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

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• 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.

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• 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
  knowledge.
• 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
  regulations.
• 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
  teams
• 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
  services.
• 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
  employees.

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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.