A LOOK AT BENEFIT OF HR OUTSOURCING FOR SUPPLY CHAIN COMPANIES

Today, organizations try to save more money through different means such as the reduction of costs. However, many of them do not dare to reduce the costs of recruiting staff, due to lack of knowledge, or fear of losing control over the processes related to the activities of their organization.

According to the above, different authors such as Farrell, D. (2005) considers that the outsourcing together with changing global landscape offers enormous value creation opportunities for companies, and competitive pressures will create intense forces for change in the supply chains of global corporations.

Especially, human resource outsourcing has become an important part of human resources(HR) operations in recent years. A 2004 joint study by the Society for Human Resource Management (SHRM) and the Office of National Affairs (BNA) found that two-thirds of the HR executives surveyed say their HR departments outsource at least one HR activity. Human resources (Office of National Affairs, 2004), and this activity is expected to increase. Procter & Gamble (P&G), for example, entered into an agreement with IBM that took effect in January 2004 and resulted in the Outsourcing of P&G Human Resources Services Worldwide (Lilly, J. D., Gray, D. A., & Virick, M., 2005).

Therefore, some of the benefits to outsource the HR process are:

– It is an alternative and an opportunity to reduce the costs related to the recruitment process, while improving the productivity of your central processes.

– Leave tasks in the hands of experts to carry out specific activities will save the company time.

In addition to these benefits in Back Office International Services located in Colombia is that we guarantee a high-quality team with professionals who understand the importance of customer relationships, and of- course a better management of seasonal or cyclical demands. Thus, we have a solution for Supply Chain companies in the different phases that recruitment involves, such as the search for the professional according to the profile provided by the organization, interviews, selection, placement, initial training, coaching, compensation (payroll, benefits administration, benefits planning, incentive and contingent pay).

In conclusion, the outsourcing of functions such as HR can be a competitive advantage for the different supply chain companies, taking into account the focus on their core activities. and also, the outsourcing converts fixed costs into variable costs, frees up capital for investment in another part of your business, and allows you to avoid large expenses in the early stages of your business.

Bibliography:

Farrell, D. (2005). Offshoring: Value creation through economic change. Journal of Management Studies42(3), 675-683.

Lilly, J. D., Gray, D. A., & Virick, M. (2005). Outsourcing the human resource function: Environmental and organizational characteristics that affect HR performance. Journal of Business Strategies, 55.

Catherine Luna

Catherine Luna

Catherine Luna is a Business Administrator, she has extensive knowlege in trends, challenges and risks in the supply chain and also in effective branding and advertisement. She works closely with B2B companies and managing content. Besides that, she loves animals and that is why she is a volunteer.

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