Outsourcing has become a popular business trend in 2021. 59% of global businesses are involved in outsourcing to reduce expenses. Human Resource (HR) outsourcing has become a top priority for enterprises out of the various outsourcing types. Largely because it is a smarter way to recruit and onboard skilled professionals without spending a lot of time and cost.
It is always better to know about the latest Human Resource outsourcing trends before selecting your HR outsourcing partner. In this blog, let us take you through the latest HR outsourcing trends that are currently dominating the market.
So, let’s get started.
5 Current Trends in HR Outsourcing that You Must Know About
Onboarding employees is a substantial challenge for most HR professionals. Mostly because the pandemic has forced majorities of workplaces to adopt a work-from-home policy. Did you know that in 2020, 42% of the overall US workforce had switched to remote working?
Even though you’re maintaining a remote workforce, you should still focus on engaging employees through
- Painless onboarding
- Leave management
- Performance management, and so on.
With a powerful HR outsourcing platform, you can take care of all these aspects without any tedious rounds of paperwork. Here’re some HR outsourcing trends that you should be aware of:
Trend 1: Simplify multi-country payroll
Do you run an MNC? Then you already know the challenges of running a multi-country payroll. Suppose you have an IT firm headquartered in NYC. However, you have a diverse workforce residing from other countries like Germany, Italy, France, Japan, India, Singapore, etc. So this means, you need to pay the employees in different currencies like USD, Euro, Rupees, Yen, and so on.
That’s quite a nightmare considering your HR team is sitting in the US and unaware of these countries' different tax laws. With the multi-country payroll HR outsourcing strategy, you can make timely payments to your cross-border workforce without compensating with the tax laws.
Smart businesses switch to HR outsourcing solutions to keep up with the latest HR outsourcing trends. An HR outsourcing solution takes care of the following:
- Automated tax withholding
- Handling payroll with utmost transparency
- Managing multi-currency payrolls
Basically, you can use a single, integrated dashboard to manage all the international payroll activities.
Trend 2: Free-up time with Employer of Record (EOR)
One of the widespread HR outsourcing trends that have been doing the rounds lately is EOR. An EOR company works as the intermediary between the employers and the employees in any HR outsourcing model. Enterprises can hand over any traditional employment responsibilities and documentation to the EOR organization.
Some of the significant benefits that you can encounter by adopting this HR outsourcing strategy are as follows:
- Process monthly/hourly payrolls without worrying much
- File taxes without worrying about national/international legislations
- Onboard new employees seamlessly
- Perform background checks on employees before hiring
- Terminate employees without missing out on any laws
This particular global outsourcing trend can save hours of time spent on paperwork, processing payroll, and handling other HR issues.
Trend 3: Start a social media-focused recruitment
One of the prevalent HR outsourcing trends that are set to gain more popularity in the coming years is social media-focused recruitment. Did you know that over 90% of recruiters search for potential candidates on LinkedIn? More and more enterprises are now including social media recruitment within their HR outsourcing model to generate faster leads for skilled candidates.
Social media is a great platform to screen the candidates, find out their past employment histories, and gain in-depth ideas about their educational qualifications and skills. Hence, HR professionals can now draw a candidate’s profile from their social media presence and assess whether or not they’re a perfect fit for any open position.
Social media platforms have a massive outreach with a global user base of 3.8 billion. It's time that HR professionals start leveraging social media to recruit skilled candidates at a much lower cost. We’re hopeful that the social media-focused recruitment trend will get much more traction in the coming years.
Trend 4: Build a strong HR outsourcing strategy with recruitment analytics
Wondering what recruitment analytics is? Let us break it down for you. Suppose you select a remote candidate from a large talent pool, after 2-3 rounds of the screening process. Then you onboard the candidate, set up their payroll and benefits, spend time and money on training them, and finally when you feel that the employee is ready to take up tasks, the individual leaves.
So, what is the result then? You’ve wasted your valuable time, money and now you’ll need to search for another remote candidate for the same position. Here’s where the concept of recruitment analytics comes into the picture. This HR outsourcing trend focuses on a number of criteria before selecting a remote employee. These include:
- Total numbers of remote applicants who applied for the job
- The length of each interview/screening rounds
- The salary package
- The respective training duration
- Tenure of employment
- Reasons for leaving the organization
Recruitment analytics emphasizes all these aspects to find out why your remote employee turnover rate is high or where your organization is lacking when retaining remote employees. With these insights, you can easily power up your outsourcing game.
Trend 5: Stop worrying about outsourcing compliance
Compliance has always been a roadblock in the path of HR outsourcing. Even a minor slip can cause critical legal battles. It is the responsibility of the HR professionals to handle each employee issue, leave management, payroll, etc. with proper care. While outsourcing, the HR team must stay compliant with the tax laws, federal laws, state laws, cross-country legislations, and whatnot!
Working with compliances can be a tricky business. HR professionals are often overwhelmed with so much legal documentations and paperwork. It is very difficult for them to keep track of all the changing legislation and incorporate them every time a new employee is being outsourced.
With the growing popularity of global HR outsourcing, many advanced applications have also come to the market. These solutions can automate the entire process of outsourcing compliance so that HR teams can incorporate apt rules and compliances without worrying much. The changing compliances get updated in these platforms from time to time, to save all those hours of woes.
Keep-up With the HR Outsourcing Trends Using Multiplier
Here’s what Multiplier can do for you:
- Hire national and international talents without setting up a legal entity
- Perform country-specific onboarding process painlessly
- Conduct global payroll with a single transfer and pay your global workforce in their local currency
- Stay compliant with the cross-border tax laws
Want to know more? Book a Demo now!