In an ever-changing business world where labor shortages are rampant, human resources management has become a major issue. This is true for the success and longevity of companies. Human resources outsourcing, also known as “HR outsourcing”, “HR subcontracting” or “HR temping”, is emerging as an essential strategy. It responds to the complex and varied challenges associated with human capital management. This outsourcing solution offers much more than a simple delegation of tasks; it represents decision-making support, risk reduction and significant added value for companies of all sizes.
1. Focus on your core business
Human resources outsourcing frees up valuable time and resources, allowing employees to concentrate on their core business. HR-related administrative functions, such as compensation management, recruitment and training, can be outsourced to dedicated experts. This allows in-house teams to focus fully on strategic activities and business growth. What’s more, managers greatly appreciate the support of a human resources consultant when it comes to dealing with a difficult employee. Without taking managers away from their important role, the human resources consultant will help analyze the situation and draw up a meeting script. External expertise, when it is not available internally, is a welcome relief for managers who have to hold courageous conversations, or even proceed to the gradation of sanctions.
2. Access to specialized expertise
One of the most striking advantages of HR outsourcing is instant access to highly specialized expertise. Filling gaps in the knowledge of in-house HR consulting teams, external HR consultants generally have complementary, specialized expertise. This expertise may be in lean management, workshop facilitation or project management. Or it may involve diversity and inclusion, and legal compliance, to name but a few. This ensures that the HR processes of companies benefiting from HR outsourcing are optimally managed. And they comply with the latest regulations. Outsourcing experts are also on the lookout for the transformation of the traditional HR department into a more human service.
3. Manage costs predictably
Fees scare you? Don’t be. Human resources outsourcing offers a more predictable (and often more efficient) cost model than permanent hiring. Instead of having to bear the fixed costs of hiring and training in-house staff, companies that opt for outsourced HR services can more easily manage the contractual agreement that binds them. And they can, in addition, choose hour banks and volume discounts based on usage.
This makes it easier to anticipate and manage payroll costs, without having to worry about contributions to group plans and the management of working conditions. What’s more, external human resources consultants operate in project management mode. This adds enormous value to the HR function, which is usually run as a cost center. HR projects are carried out according to best project management practices, i.e. within the double-triple constraints. In particular, external consultants have their eyes riveted on respectful management of costs, deadlines and resources, to name but 3 aspects.
4. Stay agile in a changing environment
In an ever-changing business world, agility is crucial. Human resources outsourcing offers valuable flexibility, enabling companies to adapt quickly to market fluctuations. Outsourced, specialized expertise can address a delicate situation. Or to address a new situation, which the company has never been confronted with before. For example, during the #BlackLivesMatter movement, the growing desire for social justice required a sudden and rapid awareness on the part of companies.
This awareness concerned the notions of privilege and systemic discrimination. External experts in equity, diversity and inclusion (EDI) enabled many companies to adapt quickly to market demands. It also guaranteed their agility in a changing environment. In fact, panelists summed up the real scope of their EDI work at the last Ordre des CRHA conference. Whether it’s to cope with sudden growth, to reduce team size during a downturn, or to meet specific HR project needs, outsourcing offers a flexible and scalable solution. Iceberg Management will team up fully with your existing talent. We can also take over the entire HR function, depending on your situation.
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Still on the fence? Here’s what one employee had to say
“The arrival of the Iceberg Management team really made a difference in our company. It was like night and day. Communication flowed, the team pushed for more transparency, they made sure we felt listened to and understood, ideas flowed and they worked hard to make our working conditions among the best on the market – and they are! We’re pampered. Having been with the company for nearly 7 years, I’ve had the chance to see the before and after. I’m glad the company decided to put its trust in them, the Iceberg Management girls did a great job and I’d recommend them to all managers who want to make their company more attractive and improve the employee experience”.
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Human resources outsourcing transcends the simple delegation of tasks. It’s a smart strategy that allows companies to focus on their core strengths. They gain access to high-level expertise, manage costs in a predictable way. And they remain agile in a constantly changing environment. Whether you run a small business or a large corporation, HR outsourcing could be the lever for better organizational performance. Don’t let HR challenges hinder your growth… outsource and prosper!