How come big companies are interested in HR outsourcing?

HR outsourcing is no longer a new term to enterprises. In this article, we will explain the magnet of this service for companies in Vietnam today.

How come big companies are interested in HR outsourcing?

What is HR outsourcing?

When a company has a demand to use labor, but instead of recruiting and managing, they choose a HR outsourcing provider supplying full package service to maximize managerial cost and let them take responsibily for things relating to labor.

Benefits of customer when using HR outsourcing

To HR outsourcing service provider, main tasks are recruitment, labor management, training, so staffs can be considered to higher positions, even company leaders. Therefor, employees have more motivation to polish their technical skills, contribute their efforts and stay longer with the provider.

Back up is obviously a strength of HR outsourcing. With a great number of workers, service provider finds it easy to make sure that customers’ demands are served continuosly. It is common to have some replaceable employees for one customer which makes the demand of suddenly increasing or decreasing labor become easier. Risks of operation break due to lack of back up, therefore, are taken care of by HR outsourcing service provider.

Efficiency benefit of using HR outsourcing

HR outsourcing service provider can distribute human resource in whole system, in all fields, different jobs are used totally. In fact, HR outsourcing service may cost lower than direct recruitment. Most of the companies that change to use HR outsourcing realize that labor cost is reduced by 20–30% per year.

Technical benefit of using HR outsourcing

HR outsourcing service provider is specialized unit, with professional specialists in recruitment, management and training. They have a plenty of labor force in all fields at any time of the year. In addition, they have a system supervising work quality of employees and they make sure about the process of service. That leads to high professionality.