Why is human resource outsourcing favored by companies?

2023-02-03 16:33:05

Favored by enterprisesHuman resource outsourcingIt should have started with the labor law standards for human resource dispatch. After the interim regulations for human resource dispatch are implemented, dispatched workers can only be employed in the three types of positions, clarifying that enterprises must not employ more than 10% of regular staff, and implementing equal pay for equal work in human resource dispatch.

This will undoubtedly reduce the volume of human resource dispatch business. As a result, many jobs have now shifted toward outsourcing human resources.

1. What is Human Resource Outsourcing?

Human resource outsourcing refers to enterprises outsourcing non-core, supportive, and highly seasonal production and operation stages based on their actual production situation, with the HR outsourcing company assigning personnel to produce according to plans and goals. Human resources outsourcing companies provide comprehensive services including human resources handling, production assistance, safety handling, and quality handling, while partner enterprises require comprehensive handling for employees.

Human resource outsourcing is generally settled based on the pre-confirmed labor unit price and the completed work volume of the outsourcing unit.

2. Advantages of choosing human resource outsourcing 

(1) Compared to human resource dispatch or direct employment methods, the human resource outsourcing model has certain advantages.

(2) It can effectively reduce the handling costs for enterprises. All business handled by non-core employees is handled by the human resources outsourcing company, allowing enterprises to save a large amount of labor and processing costs, allowing staff to focus their energy on core business activities that add value to the company.

(3) Completely severing labor connections and causing labor disputes among dispersed contracting units. In human resource outsourcing contacts, since the contracting enterprise and the worker have no labor connection, even if a labor dispute arises, the contracting enterprise does not need to bear joint liability for labor disputes.

(4) Exemption from the obligation of compensation for external harm to laborers. In human resources outsourcing contacts, if the worker causes any harm to a third party, the human resources outsourcing company, as the employer, must bear compensation duties to the victims, while the contracting company does not need to bear any responsibility.

(5) For some auxiliary positions, companies may choose a human resources outsourcing model, which can effectively isolate employees in the corresponding positions to handle hazards.