6 ADVANTAGES OF OUTSOURCING HR & ADMINISTRATION SERVICES

Outsourcing HR

Human resource is an integral part of any business and in today’s times, human resource is a part of most businesses, big or small. The responsibilities of the department include payroll services, hiring, firing, benefits and also keeping a track of the ever-changing laws and regulations. Hence, Outsourcing HR and Administration Services in Dubai can help you with concentrating on your core business. Outsourcing HR and Administration Services has many advantages. Below listed are a few of the advantages.

 

ADVANTAGES OF OUTSOURCING HR AND ADMINISTRATION SERVICES

1. A Word on Pricing

For most small business owners, price plays an important role in deciding which HR Administration outsourcing company to choose. However, HR Administration outsourcing services are usually based on the needs of the client. It is important to note that outsourcing costs can vary. Usually based on the number of employees and the particular services required. Charges range from 4% to 8% of each employee’s monthly salary. This means that the total cost will vary considerably based on size. In our case, we provide our outsourcing services for a flat monthly fee.

2. Minimizing Risk and Ensuring Transparency

Outsourcing HR administration activities in Dubai, Abu Dhabi, Sharjah, and the UAE is not only a viable cost-effective solution to the business. But also, helps minimises an employer’s risk while saving time and money. Handling employee documentation is a time-consuming and sensitive activity. This data requires handling with caution. This is to ensure the meeting of the local legal and data security measures. Furthermore, the importance of accurate information helps to streamline the residency visa process. An effective HR process can protect the company from employee disputes. Also, provide consistency on payroll and heighten the employee experience within the organisation. This allows the Human Resource department to focus on its core responsibilities. In turn saving time, money and providing further transparency and security.

3. Minimizing leave cover and office footprint

Outsourcing a service would mean the removal of leave cover and office footprint. Also, any other indirect cost associated with an individual whose role is instead outsourced. You spend less on hiring and training. Allowing your senior HR management team to focus on their core role and responsibilities. Spending less time on HR activities frees up time to spend more time on strategic sales, growth goals, and increasing revenues. Research shows that despite working an average of 50 hours or more per week, business owners only spend about 30% of that time on actual business functions. In fact, the administrative tasks consume the most amount of time. Outsourcing HR and Administrative services free up a lot of time otherwise used for employee File and Leave Management.

4. Payroll Outsourcing

Traditionally, it has been the transactional, administrative functions that are usually outsourced. This is usually done in order to free up HR to engage in more strategic-led functions. Payroll in particular, partly because of the massive compliance and legal issues arising from getting it wrong, and partly because it makes business sense. Outsourcing payroll minimizes the costs and risks involved.

5. Shared Services – HR and Finance

Multi-functional teams are precisely what works for many companies. HR is too often viewed in isolation, separate from the rest of the organisation and the outfit as a whole, operates as a series of different silos. The age-old conflict between HR and finance is a case in point. Even though arguably these two functions have the most to gain from a joined-up approach and sharing employee and business data. Shared services go a long way to addressing this. But the three-legged model as a whole continues to keep them disconnected.

Organisations need to be more agile and do away with silos altogether. It is time for the “amoeba organisation”, with agile teams forming, reforming, and dissipating depending on the situation. However, many organisations are a long way from attaining this. This makes the headcount, expenses and the disconnect between the departments cost the company a lot more than what they can account for. Outsourcing these services to a professional company ensures that these silos do not exist. Giving the company a stronger process, quicker turnaround time, and clarity on the process.

6. You get a breadth of experience and expertise.

The difference between one person’s skills and the capabilities of an entire HR team is vast. With ACT, you get the vast knowledge and experience of a team that has worked in the HR world for at least ten years. They have seen everything. We have successfully navigated challenging workplace issues with our clients. Hence, we will leverage that experience when we work with you. But our experience is not limited to only difficult situations! Our team will help put in place best practices and keep an eye on trends. Trends that can help you improve onboarding and retain high-quality employees.

 

Why and when to outsource HR services in Dubai and UAE?

The main reason a company would decide to outsource HR and Administration Services would be to eliminate the time taken and freeing up time to focus on the core business. Below mentioned are a few reasons why companies choose to outsource HR services in Dubai and UAE.

 

HR Policies and procedures

It is of utmost importance for any business to have HR policies and procedures in place to manage people efficiently. HR policies can cover all aspects of the employee’s cycle, from recruitment to the employee’s exit. Importantly, all policies and procedures need to be backed up in various forms.

 

Employee Contract

It is important that all employees working in the UAE, do so under the relevant labour contract in accordance with UAE law. Hence, all offer letters and labour contracts should be reviewed to ensure they are compliant.

 

Calculating end of service in UAE

It is very important to calculate the End of Service gratuity correctly. Importantly, it varies according to the type of contact an employee has. Also, the length of time served with the company. It also depends on whether the employee resigned themselves or was terminated.

 

Outsource your company’s HR and Administration services to ACT PRO & Business Services will ensure that you get the best and most transparent services. We aim to give you complete peace of mind knowing you have a trusted partner.

Call us on +971 4 428 1505 / +971 52 104 4794 / +971 52 6679677 and speak to our consultants. Send us an email to solutions@actgroupservices.com to know more about the details.