Back Office 11 June 2024

Offshore Human Resources Partner: Are They Right For You?

By Unient Team
Unient

A company's finest asset is its workforce, and effective team management techniques greatly influence their daily lives.

Human resource management (HRM) is the process of overseeing an organisation's human resources, which may comprise both contracted and permanent employees. As its major objectives, HRM helps you have the right people with the fitting expertise and abilities to support your business in achieving its goals and maintaining a safe and compliant work environment.

However, not every company can or wants to fully manage in-house employees. For this reason, a lot of business owners opt to contract out their human resources offshore.

More companies are opting for outsourcing and offshoring human resource functions offshore — or a combination of both — versus insourcing them. And it makes sense considering the benefit of non-traditional employment models like offshoring.

So, if you're wondering if HR outsourcing can benefit your company, this article is for you! We'll go through the benefits of offshoring your HR functions, which tasks to leave to your offshore team, and more.

What Is HR Outsourcing With an Offshore Partner?

What Is HR Outsourcing With an Offshore Partner? - Offshore Human Resources Partner: Are They Right For You? - Unient

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Delegating human resources responsibilities to offshore and outsourcing companies is known as HR outsourcing. Through their services, you can benefit from their proficiency in handling various HR administrative duties with care and accuracy.

An offshore human resources partner is a third-party organisation that offers outsourced HR services to companies of all kinds. This setup allows you to focus on your primary business objectives while streamlining transactional and administrative HR operations, cutting expenses, and taking advantage of your partner's up-to-date and extensive knowledge and resources to ensure compliance.

Usual services offered by your offshore partner include payroll hiring and recruitment, payroll processing, personnel management, training and development, and ensuring compliance. Their duties frequently cover the whole employee lifecycle, from hiring to offboarding. For cost-effectiveness and ease of coordination, you should ideally collaborate with a single partner who provides the entire range of services at reasonable prices.

Most Common HR Functions You Can Offshore

1. Payroll Processing, Compensation and Benefits Administration

Payroll Processing, Compensation and Benefits Administration - Offshore Human Resources Partner: Are They Right For You? - Unient

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One of the most offshored HR tasks is payroll processing. Accurate calculations of your employee compensations can be challenging and perplexing. Errors in payroll deductions, wage garnishments, taxes, benefit premiums, and other areas can result in legal issues. Because of this, more and more businesses delegate the work to experts offshore rather than doing it in-house.

In addition to specific knowledge and experience, managing pay and benefits requires time and resources that internal teams don't always have. This can be simpler with offshoring.

Additionally, it may increase effectiveness, reduce hazards, and save money by doing tasks like:

  • Minimising the danger of non-compliance with regulations and steer clear of expensive fines.
  • Adjusting pay plans to reflect current market conditions and corporate objectives.
  • Boosting payroll processing accuracy and operational efficiency to make resources available for crucial projects.

2. Recruitment and Team Retention

Recruitment and Team Retention - Offshore Human Resources Partner: Are They Right For You? - Unient

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Your business must attract and retain top talents to survive and thrive amidst rapidly evolving market conditions. With an offshore HR partner, you can gain access to objective assistance and in-depth knowledge in areas such as:

  • Recruitment and retention strategy — to use competitive tactics to improve personnel selection and lower attrition.
  • Employee experience — to guarantee an exceptional and optimised employee journey from onboarding to offboarding.
  • Training and performance development — to create training curricula and activities for performance enhancement that support the professional development of team member.

For hiring and team retention, your offshore HR partner can help you:

  • Reach a larger pool of potential employees and draw in applicants with your desired knowledge and abilities.
  • Raise employee satisfaction and engagement with customised career advancement options and development programs.
  • Decrease turnover and its related costs by putting into practice efficient retention tactics suited to the culture and values of your company.

3. Team Training and Monitoring

Team Training and Monitoring - Offshore Human Resources Partner: Are They Right For You? - Unient

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This covers duties including creating and implementing employee training programs, frequently incorporating live training, online courses, and content libraries accessible at any time.

Offshore HR partners could guide on:

  • Key performance indicator (KPI) development to help gauge the performance and efficacy of the company's human resources.
  • Analyse HR data to find trends, patterns, and areas to amplify, stop, or improve.
  • Benchmarking to evaluate performance, spot areas for development, and compare HR metrics to industry norms and best practices.

As a result, companies can assess the efficacy of their strategies, make better-informed HR decisions, and establish a more competitive market position to draw and hold people.

4. Compliance and Legal

Compliance and Legal - Offshore Human Resources Partner: Are They Right For You? - Unient

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Maintaining your organisation's adherence to the most recent labour practices and workplace safety rules and regulations is one of the most crucial components of human resource management. It is particularly essential for businesses that operate internationally to stay up-to-date on changes because not only do they need to consider domestic laws and regulations, but they also need to be informed about international ones.

Organisational success depends on staying on top of compliance and legal issues, but doing so takes a lot of work and close attention to detail. You must consider various areas, such as workplace regulations, data confidentiality, tax policies, compensation practices, health and safety, proper documentation, and more.

Having these functions taken care of by your offshore team allows you to help your company concentrate on its most pressing issues because you are bringing in external strategic leadership and teams for HR functions. For example, your offshore staff will help develop successful hiring and selection and employee retention programs, moving you closer to your objectives of having the best-fit people in your organisation and creating a solid corporate culture.

The daily tasks, like applicant screening and payroll processing, can still handled by your in-house HR staff. Along the process, though, they receive the assistance they require and access to knowledgeable HR executives who will rapidly become familiar with the specifics of your company. Read more about how offshoring your HR team works with Unient here.

Why Do Companies Partner With an Offshore HR Team Provider?

Why Do Companies Partner With an Offshore HR Team Provider? - Offshore Human Resources Partner: Are They Right For You? - Unient

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There are multiple reasons why your company would want to contract out HR to an offshore partner. Advantages include reduced costs, faster response times, increased productivity, continuous operations, improved technology, unemployment assistance, and adherence to employment laws.

But before you jump right in, take into consideration these capacities before offshoring your HR functions to a third-party provider:

  • A distributed talent pool of highly trained professionals with onshore performance equivalence fully managed for you by our Client Success Managers and Operations Managers.
  • Customised solutions that will help transform your business requirements into solutions tailored to your needs, budget, and timeline.
  • Elastic engagement models that are responsive to your project demands and business goals.
  • Unparalleled support through reliable communication channels and a perpetual replacement guarantee.
  • Transparent hourly billing, domestic invoicing, and to-the-minute time accounting.

How To Determine the Right Offshore Team Partner

Choosing the right offshoring partner is the next task on our list of priorities. Assess and evaluate carefully your options to ensure that those you trust can produce the outcomes you anticipate.

In your screening, you must not forget that your offshore provider's location can have a significant effect on the success of your venture. Check out below about the top-most qualities to look for in your offshoring location:

What Qualities to Look For in an Offshoring Location - Offshore Human Resources Partner: Are They Right For You? - Unient

And here are seven more things you need to look for:

Identifying the Right Offshore Partner for Your Business: 7 Things To Look For - Offshore Human Resources Partner: Are They Right For You? - Unient

You can read the full details of these qualities in this article.

Keep in mind that you are delegating to an external team critical elements of your internal operations. Spend some time going over all your queries with each possible service provider to get information about them — like their values and how closely they correspond with yours — that is not readily obvious from quantitative statistics.

Are You Ready To Take it to the Next Level?

Are You Ready To Take it to the Next Level? - Offshore Human Resources Partner: Are They Right For You? - Unient

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Widespread digitisation has allowed businesses to access talents and services outside their usual geographical boundaries, allowing outsourcing and offshoring to thrive.

Having an offshore HR team is an exceptional way for firms of any size to scale fast and efficiently, especially if they are having a difficult time filling vacancies or even due to financial restrictions.

We at Unient would like to help you combat your challenges and transform your workplace. Schedule a free consultation with our team of HR specialists to begin the process of streamlining your HR operations today.