The 6 Most Common HR Outsourcing Services and Their Costs
It takes money to make money while operating a business. Every day you decide on what to spend to improve your company. New people are one of the most valuable acquisitions that you can make, but the cost of recruiting an employee is perhaps one of the costliest components of managing a company, and you have to ensure that you only get the right employees.
The solution to all of the above issues is HR outsourcing. Let’s find out about the 6 most common functions in a HR outsourcing company and the related cost of each service.
Recruitment Process Outsourcing
Many firms just don't make sense to have a committed HR staff. Startups boom worldwide, and half-dozen teams are able to operate a company efficiently. One point must be noted: In a team that is tiny, there is no need for a hiring specialist. With only several people on board, every new hire is crucial for the team’s success. Mostly, small business owners devote about 40% of their working hours on income-producing jobs, such as recruitment.
In this case, one choice is to carry out recruitment software that is designed to simplify the time-consuming, routine hiring activities of small companies. Our skills tests save more than 80% of hiring time, making it excellent for beginner individuals and organizations. Another choice is to get outside assistance by using Recruitment Process Outsourcing. Many HR organizations are glad to help you fill a role but the problem is that the service does not come cheap.
An Employee Handbook
An employee handbook provides essential details on rules and practices in the workplace and can be an important document to limit future legal liabilities and expenses. However, if you’re like some companies, you may not have a handbook at all. Or maybe the template you've found online has been changed. But, with all the developments in law and regulation affecting the office, daily reminders – and required updates to your guide can be difficult. Instead, you may want to outsource the development of a custom handbook.
The managers have to ensure that you only get the right employees.
It is always a smart idea to do background tests before you recruit even though the industry does not need them. That is because you will be protected from the possible dangers of a poor contract by a screening. For example, it can be important to know about 3 Driving-Under-Influences regulations if you are hiring someone to be a truck driver. In terms of profiling applicants, beginning with simple background research into the history of jobs and extending the history of crime, can usually give you different levels. Further history controls, such as a DMV report (driving record), are available based on what is suitable for the business. Depending on what you need, you can expect to pay a vendor $25 to over $100 per hire.
Labor law compliance
As a company owner, more regulations than just profits and taxes ought to be observed. You also have to follow equal employment opportunity (EEO) laws and workers' compensation regulations. With little to no additional effort at your end, you will keep yourself in line with both EEO and employees' compliance guidelines day by day. You can find some free checklists online, but these models do not necessarily include their own national and local laws or businesses. This is why some firms decide to find an outsourcing company to handle this.
Strategies on compensation
Making sure you structure your payroll policy and provide workers with proper incentives and improve productivity to achieve your corporate objectives is important. You should follow a Do-it-Yourself strategy and create a market-based pay system. Wage data is free from the Bureau of Labor Statistics. You can also purchase a salary survey from various sources, including industry associations and HR consulting firms that can cost as little as a few hundred dollars.
There are two ways in which you can compensate. Your first option is to set a benchmark. In this way, you can understand the importance of the work in the area and the wages for the 25th, 50th, and 75th percentiles. Complete payroll solutions charge $375 to calculate the wage for a particular role. You may also want more in-depth assistance, such as a comprehensive pay package that evaluates all jobs and compensation areas and whether an improvement is applicable to them. You would also incur an hourly cost for the contractor, which usually varies from $100 and $150 per hour.
Training on Anti Sexual Harassment
Many organizations have little experience in conducting in-house employee training on this topic. One way to get around the teaching in sexual harassment is by buying an online class or a live class, either onsite or remotely. It can be less than $50 online class or for all members of the on-site class, the overall expense could be from $1,500 to $5,000.
How are suppliers charging HR outsourcing services?
You soon discover that the way businesses bill varies greatly, as you begin to look at the costs of outsourcing HR.
You could be charged with several particular ways:
- A flat fee by service (AKA pay-as-you-go)
- By pay period
- Per Employee Per Month
- A percentage of each employee’s income
Regardless of however businesses are charged, the costs are subject to different variables, like:
- Services need and whether bought separately or packaged
- The scope of your HR problem
- The number of employees (For example: for those with less than 100 staff, some HR suppliers will charge less)
As Vietnam's leading HR consultancy firm, Talentnet applies state-of-the-art technologies to its payroll framework with strict safety, a profound understanding of labor law, and associated HR outsourcing solution. Please contact us today to know whether the HR outsourcing services will work with your company budget, save your company time and money and at the same time avoid all additional costs.