Smart Companies Outsource HR to Human Resource Management Company | Here’s Why

Smart enterprises know that employees are the best asset and need to be managed professionally. One may set up an HR department but who will manage the HR people? Then there are other HR issues to consider all of which point to outsourcing HR as the most viable alternative.

Employee satisfaction

Keep employees happy and you have a committed workforce. However, the road of HR is paved with potholes like delays, errors of commission and omission and statutory compliances that can give rise to employee dissatisfaction. Leave it to professional human resource Management Company to ensure that such issues do not create employee-management barriers or ill-feeling. HR management experts employ teams of professionals, systems and processes in all aspects. Employee satisfaction assured by:

  • Precision and accuracy in all calculations
  • Analysis of performance and growth path
  • Self service portals for employees to access their details and put in official requests.

Statutory compliances

Even a qualified HR management employee may not be up to date with the latest amendments to statutory laws with the result that your company may find itself on the wrong side. Statutory compliance can be one of the biggest hurdles and the best reason to outsource human resource management. HR management companies employ legal professionals to keep track of changes in laws and ensure timely and precise compliances. Statutory compliance takes care of:

  • Time and attendance
  • Payroll
  • Deductions for tax and various other government contributions like ESI, PF
  • Filing forms with appropriate authorities


The goal of recruitment is to hire talent that ultimately proves to be an asset to your company. You do not want square pegs in round holes. Assessing a candidate is a fine tuned granular approach requiring expertise and knowledge to initiate a process that will motivate right people to apply. Then there is the process of short-listing applications and extended interviews followed by onboarding. HR professionals do it all the time for various clients and customize the process. You get better talent with less effort while concentrating on your more important revenue generating activities. Hiring talent is one thing but retaining talent is another matter. This is where HR professionals make a difference and you have talent that stays and powers your company’s growth. Typical recruitment stages:

Assessing client’s need and job responsibilities to create profile

Deploy ads and online job portal  as well as social media ads

  • Scrutinize applications and shortlist candidates
  • Research candidates
  • Conduct interview
  • Hiring process
  • Onboarding
  • Termination

In office processes

One may assume that HR services are limited to hiring, payroll and statutory compliances but there is a more important aspect. It is ongoing by way of constantly analyzing an organization’s processes and employee performance. Neutral HR professionals from external outsourced HR companies are better placed to have an objective view. All that can be done:

  • Track goals and objectives and compare with actual performance
  • Identify gaps and recommend remedial measures
  • Keep management informed
  • Orient employees, find out their pain points and smooth office working environment
  • Create performance appraisal systems, develop various compensation and rewards programs and update employee policy manuals


There is no doubt that outsourcing HR management does save on cost, time and effort. In addition there is the superior benefit of continuity. If you have an HR department, employees may leave and new ones taking their place will need time to adjust. There is a break in continuity. Leave it to Alp Consulting HR management and this issue never arises.


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May 2019