Managing a business and running many in house departments – these things sometimes hinder smooth operations. Companies find themselves faced with too many tasks and too little time to give them the focus they require. Budget constraints for small and medium businesses play their part too.
In this article, we discuss how HR outsourcing Dubai helps businesses manage everything. We also go over the importance of outsourcing your HR functions. We cover the benefits and the disadvantages that HR outsourcing might have.
What is meant by HR outsourcing in Dubai?
Businesses oftentimes delegate their HR functions to a third party organization. This is called HR outsourcing. The organization manage all or certain aspects of a business on their behalf. This assists the business in ways more than one.
Outsourced HR functions
There are many tasks and functions than an HR department is often busy with. Freeing them from some of the more time consuming tasks allows for other more important tasks getting priority and a better focus. In house HR departments can pay an increased amount of attention to the necessary functions. Small and medium businesses might not have to hire an entire in house department at all. Hiring, recruitment, talent acquisition, employee retention, payroll processing – there is a lot a human resources department has to do. Companies specializing in HR outsourcing Dubai manages the outsourced functions on a company’s behalf.
Why is it Important to Outsource HR?
There are many reasons for the importance that HR outsourcing Dubai has. It ensures smooth stress free operations. It manages most of the tedious work on your behalf. HR outsourcing Dubai handles the paperwork and the long and complex processes. They make sure you are in compliance with the regulations of the country. Legal compliance, extensive support, ongoing assistance – all of these things make HR outsourcing all the more important.
Cost Savings
The reason for outsourcing HR functions for many small and medium businesses is their budget limitations. However, many large businesses also outsource the HR tasks to others.
By choosing the option of HR outsourcing, companies save a huge amount of cost. It would be otherwise spent on hiring, training and constantly running operations for an entire department. This proves to be a resourceful decision in the long run.
Focus on Core Business
HR outsourcing assists with focusing on core business instead. When the HR department at your company is not weighed down by countless of tasks every day, they get their time to shine with emphasizing on the essential activities of your business.
Enhanced Expertise
HR outsourcing Dubai companies have a complete team. Their team is made of professionals with extensive experience and specialized expertise. Their expertise will assist you with adherence to labor laws. They will ensure you comply with the regulations of Dubai.
Improved Efficiency
With most time consuming tasks taken off your shoulders, there is more room for efficiency. It becomes convenient to ensure efficiency in your other core functions.
What are the Examples of HR Outsourcing?
HR outsourcing of course comes in many forms. Business have the option to outsource a select few of their functions. This means they can pick which they want to manage themselves. And they outsource the rest.
Talent Acquisition
Getting access to highly skilled talents become easier when you reach out for services of HR outsourcing. This ensures you have a team of top talents working for you forming your workforce. Outsourcing the matters of talent acquisition is a great resource for staffing solution UAE, contract staffing in Dubai and temporary staffing in UAE. It also offers permanent hiring solutions in Dubai, temp staffing Dubai and permanent hiring UAE.
Payroll Management
Keeping track of employee compensation and benefits is a very important task. HR outsourcing manages accurate payroll processing. They ensure timely payments to employees. They make sure the pay slips are free of any errors. There are many responsibilities when it comes to managing payroll. There is no room for inaccuracy and errors as these will result in hefty fines. it will negatively affect businesses too. This is why many companies opt for payroll outsourcing in Dubai.
Benefits Administration:
Employees might receive additional compensation, bonus, allowance and benefits if it matches their job description. Many companies delegate the task of benefit administration to HR outsourcing.
Compliance Management
Dubai’s regulations keep changing, making way for an organized labor market. This means keeping up with the constant updates. HR outsourcing makes certain that your business is in compliance with the rules. This prevents legal consequences too.
What are the Advantages and Disadvantages of HR Outsourcing?
Anything so important as HR outsourcing Dubai is bound to have its fair share of advantages and disadvantages. Nothing in this world is perfect of course. That means what may be best suited to one company’s need might not be what the other business is looking for. Making the decision of getting the services of an HR outsourcing Dubai company or not might become stress-free with considering the pros and cons.
Advantages of HR Outsourcing in Dubai
There are many benefits to HR outsourcing a company can enjoy. Taking these advantages into account helps with making better decisions.
Cost Savings
When you go for HR outsourcing, there is a huge amount of cost that your business will be able to save. Expenses are notably reduced to a quite lower number.
Access to Expertise
With HR outsourcing, you get access to expertise of a professional team. They are knowledgeable in all the workings of human resources. Their expertise helps with managing the administrative tasks.
Reduced Administrative Burden
It is possible to reduce the huge amount of stress plaguing your in house human resources team. Delegating a certain portion of your HR tasks will take the administrative burden off their shoulders.
Focus on Core Business
Dealing with a lesser amount of administrative functions would mean an increased focus on your business’ core activities.
Disadvantages of HR Outsourcing in Dubai
There are certain downsides present to HR outsourcing too. These are some of the things holding businesses back from delegating their HR functions.
Loss of Control
A business might feel they are not in control anymore when they outsource their HR functions to a third party. Some companies prefer retaining at least some amount of control over their HR procedures.
Potential Communication Issues
It is undeniable that communication is what makes or breaks a good customer experience. HR outsourcing can result in some potential issues with communication.
Security Concerns
Employee and company data is sensitive. It should remain confidential. An HR outsourcing company cannot instill confidence from its clients when it does not sound promising with its cyber security measures.
Finding the Right Provider
There’s a chance that a company might be all set for HR outsourcing. Yet the thing holding them back is the choice of provider. It is a risk for many businesses to suffer the long lasting effects of a wrong decision. Finding the right provider for this service affects a company.
Limited Customization
There are times when a company might be looking for very personalized plans. It is possible at the same time that a service provider might not be offering one. This can have a business stuck at the crossroads.
How Does HR outsourcing Reduce Costs?
We have already talked about HR outsourcing saves a great amount of cost. But the question still remains. How so? To answer this, we have broken it down into further smaller sections.
Economies of Scale:
A business gets certain cost advantages due to expansion. Or the more you produce, the lower the cost per unit becomes. The third party you are going for offers you the economies of scale.
Reduced Overhead:
Fixed costs are spread over a larger number of units. This reduces the cost per unit. The cost saving happens because certain expenses, like salaries of administrative staff, and insurance, remain relatively constant.
Improved Compliance:
You do not have to fear the fines or pay a heap of amount for not being in compliance. Outsourcing your HR enhances the level of compliance you are involved in.
Streamlined Processes
It streamlines different processes. This contributes towards saving cost and cutting back down on unnecessary expenses.
What is the Primary HR Challenge of Outsourcing in Dubai?
There are certain HR challenges of outsourcing. Knowing how to overcome them will help you with not making some costly mistakes.
Loss of Control
Entrusting another organization with your HR tasks makes businesses fear loss of control over particular aspects. This challenge of loss of control should not be taken lightly. It should be addressed properly. This will help combat the HR challenge.
Finding the Right Partner:
Another challenge is finding the partner that is right for you. The one who matches the needs of your business. Identify what you require. Assess the services provided by the partner. Make better informed decision.
Communication Challenges:
Another one on the list is challenges in communication. Discuss the preferred point of contacts. Examine their approach to consumer service.
How to Find the Best HR Outsourcing Services in Dubai
It is seemingly very difficult to find the best HR outsourcing services in Dubai. You can manage it though be assessing the requirements, identifying the business needs and addressing what needs complete outsourcing. One of the best options available for you in this regard is Kinza HR. We specialize in our services as recruitment consultant Dubai, Employer of Record UAE and Emiratisation in Dubai.
Conclusion
Entrusting another company with certain or entire functions of HR is important. It helps with adhering to Dubai’s laws. Businesses save their valuable time, money and resources when they choose to outsource HR. Contact Kinza HR for our services of HR outsourcing Dubai.
