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Is Outsourcing HR Right for Your Business?

Is Outsourcing HR Right for Your Business?

Lots of businesses are facing a financial crunch as the margins they operate under continue to shrink. This unfortunate trend has led a lot of businesses to outsource elements of their operations to try and cut costs. One part of the business that is either outsourced or cut out entirely has been the human resources department. 

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Should Your HR Department Be Worried (About Automation)?

Automation Isn’t the First Threat

Human resources cover a lot of ground in any business. In fact, many smaller businesses extend the human resources role past the seven core functions of HR. These are:

  1. Recruitment
  2. Payroll Administration
  3. Benefits Administration
  4. Training and Professional Development
  5. Performance Reviews
  6. Labor Relations
  7. Managing Compliance

Over the past several years, the company human resources department, especially at small and medium-sized businesses, has been encroached upon by outsourcing. Like many other outsourced platforms Human-Resources-as-a-Service (HRaaS) services use technology to fill in the gaps left by not having dedicated HR professionals on staff. For the business, it reduces the cost, while fulfilling virtually the same roles through remote help desk and software

The Relationship Between Automation and HR

Technology changes things. Does it make it better? That’s a matter of opinion, but for the business owner, not having the human resources department means that they are on the hook to complete the tasks that the human resources department undertakes; and, there is a mountain of it.

That is, unless they can automate them.

The benefits of automation are the same no matter where it is put to use. It opens the way for staff to focus on being more productive, by leaving behind a lot of menial (yet time-consuming) tasks. Aside from enhancing efficiency and productivity, there are many key benefits to automating HR. They include:

  • Reduced employee turnover through improved employee engagement
  • Reduced storage and printing costs
  • Improved risk management and properly managed compliance
  • Improved document management
  • Enhanced business decision making with comprehensive reports
  • Optimized business growth through efficient onboarding

Today, there are plenty of software-based solutions that can keep any business running effectively, but when you get a look at them, these solutions aren’t really human resources platforms, they are human capital managers. 

What is Human Capital Management?

Human capital management is a platform that encourages businesses to treat their workforce as they would any other asset. Its goal is to get the human resources of the business to work as effectively and efficiently as possible. While human resources do more to deal with the individual needs and motivations of workers, human capital management seeks to look for metrics that can be quantifiable and strategically improved upon. It basically aims to change an organization’s view of their workforce from a commodity to an investment. 

What Strategy Is Best for Your Business?

There are multiple ways that automation can be implemented in the HR/HCM process, but depending on what strategy is used, you could be setting your company up for problems from your actual human resources. Most workers don’t like being treated like numbers on a spreadsheet after all. On the other hand, divorcing business decision-making away from typical workforce considerations that aim to sap overall productivity will benefit your organization’s bottom line. 

HR is always a balancing act. 

If you would like to know how automation could help you keep your organization balanced and productive, reach out to the IT professionals at Coleman Technologies today at (604) 513-9428.

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SMB Human Resources and Payroll Find a Home in the Cloud

Human Resources may not be the meat and potatoes of any business, but it is exceedingly important. With all the mandates a business has to stay in compliance of, having people whose job it is to deal directly with the staff on behalf of the company makes a lot of sense. Since some SMBs don’t have a dedicated HR department, there are now platforms available that provide those services. But, let’s first start by outlining what kinds of tasks the average small business has to deal with, with a list.

The top six issues a HR department would have to deal with are:

  • Employee retention
  • Health and safety
  • Personnel
  • Payroll
  • Training and compliance
  • Employee management

Software developers have been creating dynamic human resources software, aiming to take the hassle out of a crucial part of your business. Some are pretty advanced, providing human resources directors useful automations that help them control many of the vast responsibilities placed on them. Some useful HR-related software you’ll see includes:

  • Human Resource Information System (HRIS)
  • Applicant Tracking System (ATS)
  • Onboarding
  • Benefits Administration
  • Time and Compensation Management
  • Training Management Performance, and Recognition Management
  • HR Analytics
  • Wellness Management

It seems overwhelming, but most of today’s most popular and utilized tools check most of the boxes as far as including a useful cache of tools that will allow them to manage any small or medium-sized human resources department competently.

While it once was popular to host all the applications a HR department would use on a single computer or on a very small network, today there are a few HR software vendors that provide a completely hosted solution. This means the software is hosted on secure servers that are managed by a provider, and accessible from anywhere there is an Internet connection.

Human Resources as a Service
Some small businesses have begun to completely outsource their human resources, with some success. HR as a service (HRaaS) basically eliminates the need to hire human resources staff, as the service provides resources that allow for a holistic approach to all the important tasks a human resources director would accomplish without the resounding costs associated with traditional human resources strategies.

Not only does a HRaaS platform eliminate a large section of the costs associated with human resources, it standardizes the approach to HR, eliminating the hiccups that often happen with the traditional method. A business will have their HRaaS platform customized for them and would be assigned a HR professional to help keep everything working properly.

Ultimately, it will be up to you to determine how to do human resources right. If your business is searching for a consultant to help you through hard business and technology decisions, reach out to the professional IT technicians at Coleman Technologies. Call (604) 513-9428 to get started building a more efficient business.

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