The various ORM tools are as follows:
- Supply chain managementand procurement system (linking to suppliers).
- Human resource managementand payroll management system (linking to employees).
- Customer relationship managementand sales force automation (linking to customers).
- Outsourcing relationship management(linking to external service providers).
- Management Strategy
- Organizational Structure
- IT Infrastructure
The broad metrics on which HR outsourcing depend on are as follows:
- Cost
- Customer satisfaction
- Time frame
It can save you money by limiting the employment of workforce for doing various tasks. HRO helps to manage the work of different sectors of a company without actually hiring extra employees. The larger the outsourcing the more you can save.
HRO helps to reduce the risk faced by a company due to its turnover. Even if an employee moves out, human resource outsourcing will help you to manage the problem without actually replacing the employee.
Human resource outsourcing helps to reduce the high overhead cost as well, like introduction of new equipment costs, renovation, etc.
If a company is looking forward to adding new skillset requirements, HRO can be of a great use. The HRO can help by training the current employees and managing their duties until they are capable of doing the work correctly.
Research was done by SHRM (The Society for Human Resources Management) to find the outsourcing habits of various companies. They came to a conclusion and put forward these six reasons why a company outsources;
- 26% of the companies outsource to save money.
- 23% of the companies outsource to focus on strategy.
- 22% of them to improve compliance.
- 18% to improve accuracy.
- 18% due to lack of in-house experience.
- !8% of the companies want to take advantages of technological improvements.
Article Source: https://payrollservicesfl.wordpress.com/2015/02/13/outsourcing-relationship-management-orm/