The Emerging Trends In Human Resource Management Information Technology Essay

Human resource management is a process of bringing people and organizations together so that the goals of each other are met. Human resource (or personnel) management, in the sense of getting things done through people. It’s an essential part of every manager’s responsibilities, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently.

The role of HR manager is shifting from that of a protector and screener to the role of a planner and change agent. Personnel directors are the new corporate heroes. The name of the game today in business is personnel. Nowadays it is not possible to show a good financial or operating report unless your personnel relations are in order.

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Over the years, highly skilled and knowledge based jobs are increasing while low skilled jobs are decreasing. This calls for future skill mapping through proper HRM initiatives.

With the continuous increasing competition and countries becoming global, the Organization’s concept for HR has changed. It’s the need of the time to consider the employees as the resource. The organization which are working on the principle of Attracting, Managing, Nurturing and Retaining their employees are moving ahead with the competition and are having competitive advantage over other organizations. The employees are being involved in the workings of the organizations, and their efforts are recognized and rewarded.

“People are our most valuable asset” is a cliché which no member of any senior management team would disagree with. Yet, the reality for many organizations is that their people remain

under valued

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under trained

under utilized

poorly motivated, and consequently

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perform well below their true capability

The rate of change facing organizations has never been greater and organizations must absorb and manage change at a much faster rate than in the past. In order to implement a successful business strategy to face this challenge, organizations, large or small, must ensure that they have the right people capable of delivering the strategy.

As organizations vary in size, aims, functions, complexity, construction, the physical nature of their product, and appeal as employers, so do the contributions of human resource management. But, in most the ultimate aim of the function is to: “ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs”, that is, neither overstaffed nor understaffed in total or in respect of any one discipline or work grade.

EMERGING TRENDS:

Following are the emerging trends in human resource management

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Human Resource outsourcing

Six Sigma Practices

Work/Life Balance

Talent Management

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OUT SOURCING:

Outsourcing means, shifting or delegating a company’s day to day operations or business processes to an external service provider; of course done in anticipation of better quality, lower rates and in a sense getting an edge over one’s competitors. To be more precise; Outsourcing is the work done for a company by people other than the company’s full time employees. Now these people could be anywhere and they might have their offices in any part of the world, speaking a different language and working in a different time frame. That’s the reason why selecting your outsourcing destination becomes so very important.

Outsourcing is the process by which an organization contracts with another individual or company to get some of its work done. Viewed this way, most organizations go for some kind or other of outsourcing. Generally it is non-core aspects of the business that are outsourced.

The firms that offer the services thus required are called service providers or third-party providers. Businesses may thus tie up with service providers for either individual processes or whole projects or operations.

HUMAN RESOURCE OUTSOURCING

Human Resource Outsourcing is a process in which a company uses the services of a third party to take care of its HR functions. A company may outsource a few or all of its HR related activities to a single or combination of service provides located in offshore destinations like India, China, Philippines, etc.

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Rapidly changing market dynamics and global competitive pressures have caused organizations to spend more time focusing on their core business. Organizations are fast realizing that they can’t be all things to all people. So companies now, be it a software company, a service provider or a manufacturing firm, decide what they are good at and outsource everything else, i.e., focus on their core competency, and let someone else do the rest in a more efficient and cost-effective manner.

As a result, human resources outsourcing is becoming increasingly prevalent. The number of companies outsourcing HR activities continues to rise, and the scope of outsourced HR activities continues to expand. HR outsourcing can happen in HR functions, like payroll administration (producing checks, handling taxes, dealing with sick-time and vacations), employee benefits (Health, Medical, Life insurance, Cafeteria, etc), human resource management (hiring and firing, background interviews, exit interviews and wage reviews), risk management, etc. Outsourcing has become a common response to manage people and technology resources strategically, enhance services, and manage costs more effectively.It includes HR recruiting outsourcing helps cut costs, helps concentrate on core business and most importantly helps in ensuring employee satisfaction. By Human Resource Outsourcing companies can save huge amounts of money and be free of complications that are otherwise involved in maintaining an internal HR department. By doing so, companies can concentrate on their core competencies saving their valuable time and resources. Some industry sources believe that Human Resource Outsourcing is the future, making the next generation of in-house professionals simply integrators of the company’s outsourced services.

SERVICES OFFERED BY HR OUTSOURCING:

Maintenance of personnel records

Annual review and revision of employee handbook

Audit of HR strategies, policies and procedures

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Implementation of employment/termination procedures

Job description process

Exit interviews

Employee development program

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Performance management process

On-site support

Employee retention programs

Long term incentive/equity stock option programs

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Employee Morale Building

Compensation plan review

Recruiting services

Retained Search

Job Description Development Strategy

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Ad Placement

Applicant Screening

Reference and Background Check

Candidate Interviews and Recommendations

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Development and Coordination of Offer

Integration of New Hire

HR management services

Compensation plan review and analysis

Culture development

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Due diligence/Acquisition planning

Incentive and retention programs

Executive Coaching

Succession Planning

Benefits administration

Brokerage Services

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Custom Benefit Plan Strategies and Design

Benefit analysis, cost control and reduction recommendations

Development of Employee Communications

Eligibility and Enrollment Services

Employee claims resolution

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Monthly invoice audit and reconciliation

On-line employee access to benefits information

Payroll services

Employee self-service features

Payroll processing and reporting

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Payroll tax reporting

Time off tracking

Online benefits enrollment

MEASURES OF SUCCESSFUL OUTSOURCING

The HR department traditionally has been a cost-consuming function, but is now slowly contributing significantly to a company’s bottom line. This has led to outsourcing tasks like payroll, benefits, education/training, recruiting, personnel administration, organizational development and workforce management.

The outsourcing market is beginning to see HR as a preferred choice. A Gartner Focus Report (Outsourcing: Time to Deliver Results) echoes that thought: “Only those companies ready to address the necessary transformation of their HR processes will find that outsourcing will bring access to world-class processes, competitive advantage, and increased shareholder value.”

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Technology compatibility, confidentiality and cost are other challenges that both sides must work on. Mutual trust is critical, as it’s a long haul commitment. It is imperative that senior management are involved right from the beginning and also drives the initiative. In addition, a clear understanding of requirements and expectations from both sides is an important platform in building the relationship. Compatibility in culture and values along with an open and flexible approach go a long way in ensuring that the outsourcing venture is a successful one.

COMMONLY OUTSOURCED HR SERVICES

S.No

Service

Percentage

1

Employee Assistance/Counseling

66

2

FSA Administration

67

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3

COBRA

55

4

Healthcare Benefits Administration

60

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5

Background Checks

73

OTHER TYPES:

S.No

Service

Percentage

1

Pension Benefits administration

55

2

Temporary Staffing

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54

3

Retirement Benefits Administration

47

4

Payroll & Software Services

48

5

Recruiting, Staffing &Search

30

How Do You Handle Long-Term Projects?

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6

Non-executives

29

7

Employee Relocation

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29

8

Training and Development

21

9

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Incentives -HRIS

19

10

Web-based Services

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15

HUMAN RESOURCE OUTSOURCING SOLUTION

HR OUTSOURCE SERVICES TO INDIA

One of the reasons to outsource HR operations is to streamline processes and make them more transparent to employees. Technology is usually a key enabler in achieving this transparency. It also helps preserve the sanctity of information between employee and employer.

Indian Internet IT service companies (software and web developers) are considered a viable outsourcing option today. What they offer is a strategic initiative to cut costs and access to intellectual capital not available in-house.

The increasing emphasis on customer response activities in the West have made Indian outsourcing service providers reinvent themselves and extend their web development activities to ASP (Application Service Providing) and other high-end outsourcing solutions.

When you outsource HR services to India, you can save on time and effort and concentrate on your core business. You will also be able to increase your flexibility to met needs such as, changing and new business conditions and increasing orders for products, services and technologies. By outsourcing a non-core process like HR services, you can concentrate more on increasing customer satisfaction and on increasing the value of your products / services.

Outsource HR services to India and benefit from the skills, expertise, latest technology and professional services that India offers in the field of HR. When you outsource HR services to India, you will find your operating performance, risk management and control improving. By outsourcing HR services, you can also gain access to professional services. Your outsourcing provider will be able to provide you with proficient HR services that can bring about a change in your organization. Outsourcing HR services can also help you benefit financially. One good reason for outsourcing HR services to India is that you can save on costs and at the same time get access to high-quality services.

ORGANIZATION THAT OUTSORCE HR SERVICES TO INDIA

Large organizations mostly outsource their HR services to India in order to concentrate on their core processes. Such large organizations can increase the profitability of their business by outsourcing. Large organizations also stand to gain from better HR services for their employees. Small and mid-size organizations also outsource if they do not have enough of HR staff to manage their HR functions. Mid-size and small organizations can also benefit from cost-effective services when they outsource to India. Outsource HR services to India to enhance your productivity and return on investments and also to achieve the economies of scale.

ADVANTAGES OF OUTSOURCING IN INDIA

When you outsource HR services to India, you can see an improvement in your HR support functions. Outsourcing HR services can help you bring out more effective and efficient processes within your organization. Payroll functions can be completed on time accurately and your outsourcing partner can come up with ingenious ways of improving HR functions in your organization.

Outsourcing HR services to India can help you achieve your targets. Your business can become more productive with the help of effective business and HR strategies. You can also on save time, effort and manpower. You can concentrate more on your business and can be relieved from taking care of your HR work in-house. With strategic HR strategies, training programs and development programs, you can retain your employees.

FUTURE OF HR OUTSOURCING:

Growth-Maturation of HRO market

Increasing weight of non-cost drivers

“Communization” of HR functions

New roles for internal HR departments

New career opportunities for HR professionals

Expansion of small/mid-sized HRO markets

Demographic changes

Improved HRO metrics

Reshaping of industry

RISKS OF HR OUTSOURCING

Trust

Confidentiality

Dependency

Spillover risks

Relative proficiency

Strategic capability

Commitment

Flexibility

CONCLUSION:

The ultimate aim behind this topic” Emerging Trends in Human Resource Management” is to build better human resource management through human resource outsourcing. This emerging trend executes the best way of human resource management that makes the organization to run smoothly where the employees and the organization goal are met.

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