Outsourcing has become an increasingly common business strategy in recent years. In fact, up to 92% of the 2000 companies use some form of outsourcing, while smaller businesses have just as much to gain.
But not all outsourcing companies offer the same services, particularly those operating in the HR space. Changes in industries and new trends in HR have significantly changed the way businesses should look at HR outsourcing. Understanding the top trends in HR outsourcing will help you ascertain which services are most crucial for your business and which HR outsourcing companies are best suited to offer them.
Why do businesses choose to rely on HR outsourcing companies?
HR outsourcing companies offer a highly valuable service for businesses of all sizes. Employees are always the most important asset of any business, and keeping them happy is of utmost importance. But all HR departments will be familiar with the administrative burden, which comes with their role as well as its importance in the day-to-day operation of the business.
HR outsourcing companies help take this burden away so internal HR teams can focus on more complex, interpersonal tasks. With help from an HR outsourcing company, businesses are able to save money by operating with smaller teams, work with HR experts, save time that can be reallocated to more important tasks, and enjoy increased flexibility.
A changing environment
Many of the top trends in today’s HR world stem from the changes that the pandemic and the past few years have had on work norms. More people working remotely or even from overseas has a great many benefits, but has also complicated HR work. Furthermore, the dominance of social media platforms like LinkedIn has changed how people find employment, while the rise of cloud technology has formed a top trends of HR outsourcing.
FastLaneHR’s top 5 HR outsourcing trends
Based on the current business environment heading into 2023, here are the top 5 trends we expect to see HR outsourcing firms head towards.
- Cloud-based HR outsourcing companies
Countless business services are pivoting towards cloud-based alternatives, and for good reason. Cloud-based solutions are gaining huge traction right now thanks to their ability to cut costs, offer a more comprehensive service, and provide ultimate flexibility. Especially for outsourced services, firms like FastLaneHR can offer assistance remotely and as needed. HR data is easily accessible from any location with an internet connection by authorized personnel, and services can be easily scaled up or down depending on the growth of your business.
- Social media recruitment
Social media giants have been a big part of daily life for quite some time now, but social media recruitment via platforms like LinkedIn is set to gain even more traction in the coming months and years. Many HR outsourcing firms will leverage and utilize these platforms to put out advertisements, outreach, and find talent. HR outsourcing companies that stick to more traditional recruitment methods will find a smaller pool of potential hires and provide a subpar service as a direct result.
- Recruitment analytics
Recruitment analytics is set to become an even more important part of HR outsourcing. Companies have started to understand the importance of the smaller details in their hires. How long someone stays at a company, how much training they need once hired, how quick the hiring process took and much more can all be aggregated to extrapolate useful trends. This information, when used properly by an HR outsourcing company, can help find better-fitting candidates. Ultimately, this will result in a happier, more productive, and cohesive workforce.
- Multi-country payroll
An organized payroll system is one of the cornerstones of a successful business. However, payroll systems can be complicated and difficult to manage – especially when you factor in employees in different countries (and therefore tax jurisdictions). Staying compliant as you run a system that navigates all these complex requirements is both tough and time-consuming. HR payroll outsourcing services will ensure all your employees get paid on time, everything stays compliant, and your HR team can focus on other tasks.
Work with FastLaneHR
Thinking about working with an HR outsourcing company? Look no further than FastLaneHR. We provide leading HR outsourcing services, including payroll, staff secondment, recruitment, and more. It is our mission to provide companies in Hong Kong with the most comprehensive services that keep up to date with the latest trends.
For more information or to ask us a question, do not hesitate to send us a message.