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Human Resources Outsourcing: 6 Top Trends to Know

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This article was originally published on optibpo.com. It is being republished here through syndication with the publisher’s permission.


Recruitment is a vital business function that requires effective strategies. Having an efficient recruitment system helps attract, hire, and retain the right people whose skills and values align with the organization’s requirements.

But with the fast-changing recruitment landscape, it can be challenging to keep up with industry trends. While this presents a problem, you could adopt strategic approaches to address the issue.

One is by outsourcing your human resources (HR) function. HR outsourcing allows you to focus on core business tasks while outsourcing experts manage your recruitment and onboarding activities.

Human resource professionals in the Philippines, in particular, are highly skilled and trained in providing support for international clients. optiBPO’s case study shows how it helped build a dedicated outsourced team for an energy management firm in Australia. The team has now grown and includes various roles covering human resources, finance, and purchasing, among others.

Another approach to support your HR team is to ensure you are updated with the latest developments in the HR industry. Knowing the current trends enables you to learn about new tools and discover more effective methods, allowing you to fine-tune your existing recruitment processes. In turn, you can optimize your business productivity while staying ahead of the game.

6 Human Resource Outsourcing Trends to Know

The human resources outsourcing industry continues to improve for all stakeholders as these trends show.

1. Use of recruitment analytics

More and more outsourcing providers are taking an analytical approach when hiring talents. Using what is known as recruitment analytics, they combine historical data and predictive analysis to come up with informed hiring decisions. In particular, they collect and analyze data using modeling techniques and machine learning to predict what might happen under certain circumstances.

For example, if new hires leave within the first three months, this may mean three things: an inefficient onboarding process, a mismatch between the job description and the actual role, or selection mistakes. Questions such as “What do my best candidates have in common?” and “Which sourcing channel provides the best candidates?” can be answered by using recruitment analytics.

As a whole, this data-driven approach to recruitment facilitates a better hiring process, enabling companies to hire faster while improving decision-making at the HR level.

2. The rise of social media recruitment

Social media is no longer just a platform for friends and families to connect. It has also become a space for job advertisements and work opportunities. Businesses can now conveniently find the right people by posting openings on their Facebook, LinkedIn, Instagram, or other social media pages.

According to a survey, more than 90% of recruiters now use social media to hire talents. With the number of online job searches climbing up to 460% since June 2019, it is not surprising to see outsourcing firms leveraging social media to recruit employees.

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3. Integration of cloud-based solutions into HR services

Cloud-based technology enables users to access files anywhere using internet-connected devices such as computers, tablets, and smartphones. The integration of this technology into HR services helps move the needle by automating HR processes like performance reviews, timesheet submission, and leave requests.

As such, the back-office processes of outsourcing companies that implement cloud-based HR services are far more efficient and seamless than traditional ones.

survey shows that 46% of companies now use software-as-a-service (SaaS) solutions for their HR needs. Also, the number of companies using cloud-based solutions more than doubled in the past two years. Among those surveyed, two of three companies were able to save 10% in HR costs while one in three was able to save 20% or even more.

46% of companies use SaaS

4. Greater focus on mobile solutions

Smartphone and mobile app usage has accelerated over the recent years, especially during the onslaught of the COVID-19 pandemic. Along with this development, outsourcing companies have begun optimizing HR functions on mobile channels. In fact, 84% of companies now allow or require their employees to use their phones for work purposes.

Mobile-optimized HR solutions benefit businesses in many ways. For one, they allow employees to conveniently check employment information — like log-in entries, work schedules, time-off requests, and payslips — at any time. They also enable quicker decision-making without waiting for paperwork to get completed, thanks to the real-time nature of mobile applications.

This streamlining of processes affords employees more time to focus on other tasks, increasing their productivity while improving the quality of the company’s HR services.

5. Rise of artificial intelligence

BPO companies are now taking advantage of artificial intelligence (AI) to boost their organizational productivity and efficiency. One of the ways AI is being used for HR purposes is by matching employees with mentors. An employee who is interested in serving as a mentor or having a mentor simply downloads the app and answers a few questions.

Unlike the traditional mentoring setup where “visible leaders” are often tapped as mentors, AI-powered HR programs connect eager-to-grow employees with untapped mentors.

AI is also being used to efficiently move candidates through the hiring process. Outsourced HR professionals can skillfully use AI to generate a list of potential candidates that may be a good fit for their client’s company.

6. Increased focus on data privacy

Since outsourcing inherently involves working with external teams, protecting sensitive data is crucial. As data breaches continue to pose risks for companies and their clients, outsourcing providers like optiBPO are taking steps to prevent confidential information from falling into the wrong hands. By using smart tools and sophisticated technologies, they reduce the risk of a potential data breach.

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6 Commonly Outsourced HR Functions 

Here’s a quick list of some of the most commonly outsourced HR functions:

  1. Recruitment: Outsourced teams can help with screening and interviewing candidates and onboarding new hires.
  2. Payroll: A dedicated outsourced team can help with tracking employee attendance, managing individual benefits, direct deposits, compensations, and maintaining payroll records.
  3. Support system: Outsourced teams can provide extra staffing for overwhelmed and understaffed departments.
  4. HR administration: Outsourced teams can handle employee data management, records retention, and more.
  5. Employee training: Outsourced HR teams can facilitate employees’ professional development by providing them with relevant training.
  6. Performance evaluation: Outsourced HR teams can also handle employees’ performance evaluations to identify areas of improvement and increase their job satisfaction.

Keep Your Business Relevant with Outsourcing

As a business owner, you know that innovation is key to staying ahead of the competition. Part of the process involves keeping abreast of the latest trends and developments in your industry. This approach allows you to modify your current strategies to adapt to the current demands, including HR management.


More on this topic:

How to Decide if Outsourcing Your HR Department is Right for You?

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