Why Human Resources Outsourcing is a Good Business Decision in the Philippines

As the complexity of human resource functions grows in the Philippines, more and more companies are looking to human resources outsourcing to increase productivity. Human resources outsourcing can reduce the time spent on tedious tasks, such as record-keeping, so that more time can be devoted focusing on more important business-building matters, such as strategic partnerships. When executed properly, a good human resources outsourcing plan will maximize an organization's return on their own internal resources. This enables companies to concentrate their efforts on activities that impact the bottom line. On the flip side, when human resources outsourcing is utilized, they allow the outsourcing vendor to capitalize on their own specialties, capabilities, and expertise. Having internal staff with the expertise of the outsourcing vendor can be cost-prohibitive and detract from the bottom line. For human resources outsourcing needs, many companies turn to PEOs, or Professional Employer Organizations. PEOs manage and share the company's many human resource-related responsibilities, such as administering benefits, worker's compensation, and payroll administration. Professional Employer Organizations and their clients can have a co-employment arrangement. This contractual agreement lets the Professional Employer Organization provide a full range of human resource services as well as share or transfer the liabilities of the employer. Each party has clearly-defined responsibilities ñ they each have their own specific obligations and they also share some obligations. The people they hire, in effect, become employees of the two parties. The client supervises the actual work of the employee, while the Professional Employer Organization maintains human resources and personnel-related services. Human resources outsourcing, in addition to administering benefits and payroll, can also assist with the recruiting of new employees. Recruitment can be quite a tedious ordeal. Advertising must be placed in publications and on websites. Sometimes, presence at a job or recruiting fair is needed, which takes key employees outside of the workplace. Once the ad is placed, a deluge of resumes usually follows. Wading through hundreds to thousands of resumes is no easy task. After the first ten or so, they start to look similar to each other, and the next superstar employee could be overlooked. What's more, hundreds to thousands of resumes can come from only one job announcement. When more than one job announcement is placed, managers can spend the majority of their time reading resumes rather than building a business. Then there are the tasks of screening phone calls, interviews, and rejections, not to mention fair employment practices compliance. In the confusion of multiple candidates and interviews, it's not uncommon for a seemingly innocuous yet illegal question to be asked. Human resources outsourcing seeks to eliminate these from the hands of the employer so they can spend the majority of their recruiting time interviewing the most qualified candidates.