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Randstad s.r.o.

Outsourcing has in recent years become the key tool of companies’ management

Mária Balušinská, Country Manager, Randstad s.r.o.(Source: Randstad s.r.o.)

Its essence lies in securing selected process in the company which are not its strategic business activities – mainly purchase and procurement – (hiring employees, finances and accounting, training, public relations, IT, operation of call centres, etc.) from services bought via a professional external company (HR agency, tax and audit company, training and PR agency, IT company, a call centre, etc.). As for administrative activities, outsourcing is seldom used by firms in this sector because in international terms it is difficult to achieve a reduction in costs.

The motivation for companies to outsource their activities is based not just on reducing transaction costs; but the companies get rid of the administrative burden connected with creating, financing, operating and further developing the outsourced activities within its own organisational structure. Moreover, firms buy these services to the necessary extent and duration.

As for the outsourcing of HR services alone, some of the activities of an HR department are inherently destined to be provided externally. These include especially those areas which require a high level of expertise. It is not necessary to provide them constantly, and by shifting them to external subjects, neither the integrity, nor the security of the company is threatened. Mainly three spheres of managing human resources are involved: tending to employees (own employees, personnel leasing, temporary assignment), hiring employees and educating workers.

By outsourcing HR services companies get aid and advice from several experts instead of a HR person, each of whom has experience in various HR or legal spheres.

The use of services of an HR agency can be made on several levels:
Tending of own or external employees, including full HR service where the added value is as follows:

  • HR files of employees are kept according to the requirements of current legislation
  • Securing full administrative process during commencement and leaving of employees, registering and de-registering at offices and institutions, the necessary employment service
  • Rendering information to employees for solving of common questions concerning their pay slips, holidays or other issues
  • Revising work contracts according to valid legislation, preparation of new work contracts and addenda to work contracts
  • Help in creating internal directives concerning HR agenda and setting the processes

Service in HR leasing (temporary assignment, etc.)  
HR leasing or contemporary assignment of employees is a modern and flexible form of employment. The HR agency selects an apt candidate through a chosen method. The selected candidate signs a work contract with the HR agency and becomes officially its employee. In fact, he or she works – based on mutual agreement – for the employer (client of the agency) to whom he has been assigned.

The added value of using the services of an external HR agency for HR leasing is as follows:

  • Full tending to the assigned employee from their recruitment, to their commencement, and until the temporary assignment ends
  • Client can check the real skills of the employee during a period agreed in advance
  • Freed from the burden of constantly searching for new employees on one’s own
  • HR files of employees are kept according to the requirements of current legislation
  • Securing full administrative process during commencement and leaving of employees, registering and de-registering at offices and institutions, the necessary employment service
  • Rendering information to employees for solving common questions concerning their pay slips, holidays or other issues

The added value of using the services of external HR agency for employee recruitment is as follows:

  • High degree of expertise
  • Ability to diagnose candidates, pre-screen and pre-selection of candidates, time saving – in form of meeting just the recommended candidates
  • Covering a wider range of candidates thanks to own databases
  • Ability to directly search for employees, especially for higher managerial positions
  • Targeted search in highly expert positions with necessary qualification and experience

The added value of using education services by external agency are as follows:

  • Rich experience from the market which can be applied during trainings as “sharing best practices”
  • Precise targeting of the company’s segment
  • Motivation agent for employees     

The contents of the outsourcing services always stems from the requirements of specific client and their specific needs. Companies can achieve long-term labour productivity growth thanks to deeper focus on main business activities.

With external providing, the growth of the quality of outsourced services can be better achieved, as the specialised outsourcing partner accomplishes a higher level of know-how and cost saving. Thus, outsourcing is the modern trend of modern companies.

Mária Balušinská,
Country Manager

www.randstad.sk

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