Human Resources Process Categories

HR outsourcing has long been the forefront of BPO, and it remains, by far, the most outsourced business process. Let's examine the different process categories within HR to better understand which parts of HR are ideal targets for outsourcing.

HR is a complex business function that covers a range of processes, from basic transactions to workforce development. back-office. ebs includes the following six processes in its definition of HR outsourcing:

HR Categories
Process Management Services
Organization and people development - Organization development
- Training- Employee development
- Performance management
- Policy and legal compliance
Total compensation and benefits management - Compensation
- Medical Benefits
- Retirement Benefits
- Payroll
Workforce services

- HR strategy|
- Regulatory compliance
- Labor and employee relations
- Third-party vendor sourcing and mgmt
- Employee communications

Employee data management - Employee data and records mgmt
- HR IT and information services
- Employee and manager self-service
Recruiting and workforce planning - Recruiting, resourcing and staffing
- Background checks, Drug Testing
- Expatriate administration
- Domestic relocation

Organization and People Development
This category centers on developing and implementing organizational strategies and process improvement initiatives. It might include creating performance goals for the organization and providing the tools needed to assess employee or group performance against those goals or developing training strategies, assessing training needs, and creating courses and related materials. Compliance with HR-related legal requirements and governmental reporting requirements also falls under this category.

Total Compensation and Benefits Management
A broad range of services fall under total compensation and benefits management including the design, development, administration, and communication of compensation and benefits programs. Specific tasks include processing client payrolls and managing their deferred compensation, stock options, long-term performance, defined benefit and health and welfare plans.

Workforce Services
This process category revolves around developing and implementing a long-term HR strategy with frequent input concerning HR best practices. It takes into account company efforts to promote and maintain effective relationships with all of the employees. The end goal of workforce services processes is to retain a productive and committed staff.

Employee Data Management
Employee data management equates to capturing, tracking, modifying, and reporting large amounts of employee-related data through integrated Web-enabled technology. It also includes managing human resources information system strategies and policies as well as the technical infrastructure (maintenance of organization codes, administration of position management, and employee indicative data).

Recruiting and Workforce Planning
This process category covers the creation of workforce strategies that help to effectively deploy and measure human capital. It also includes developing candidate pools, assessing and selecting candidates, and managing recruiting and other staffing functions. For large multinationals, recruiting and workforce planning spans establishing and administering expatriate and domestic relocation policies and programs, addressing and managing the special needs of the expatriate and domestic relocation populations, and handling the repatriation of employees.

Insight:
For more information about Offshore Outsourcing, see Offshore Outsourcing: Business Models, ROI and Best Practices.
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