Redefining HR outsourcing: Fuelling business growth in the battle for talent

You don’t need to be told that employee expectations around pay and benefits are changing. Chances are you’ve experienced it first-hand.

With unemployment rates in the UK and the US hovering around 3.5 per cent to 4 per cent for the past couple of years, job seekers have gained the upper hand, becoming increasingly discerning in their choice of employers. Meanwhile, businesses find themselves grappling with the uphill battle of attracting and retaining top talent. In 2022, the UK witnessed a record-breaking surge in the number of workers switching employers.

In response to this challenge, businesses are doubling down on their efforts to enhance compensation and benefits packages to both grow and sustain their workforce. However, delivering these experiences can be a bumpy ride, especially as teams try to navigate the complexities of in-house processing or managing multiple vendors and systems in addition to directly servicing employees. 

It’s natural for HR departments to want to take on these responsibilities themselves. After all, they’re charged with creating an engaging and differentiated experience for their employees and understand their needs best. While the idea of outsourcing payroll and benefits administration might free up time, concerns often arise: Will I be opening up my company to additional risk? Will setting up and managing the outsourcing provider take a lot of effort? Will this compromise the quality of the employee experience? 

Absolutely not, provided it is done correctly. 

There’s more than one way to outsource

When many people think of outsourcing, their mind gravitates towards traditional business process outsourcing (BPO). This method of contracting out tasks to third-party service providers can be inflexible, involve copious data transfers and potentially expose organisations to various risks.

While BPO serves the purpose of offloading problems onto someone else, it is not necessarily a source of innovation, which modern businesses are actively seeking. This lack of innovation might be why many organisations hesitate to explore outsourcing in crucial HR areas related to attracting and retaining talent. 

However, there’s a more comprehensive alternative for outsourcing HR, payroll and benefits. It’s known as business process as a service (BPaaS). This innovative approach to outsourcing offers a more complete solution that empowers businesses worldwide to achieve operational excellence and deliver exceptional employee experiences. 

Unlike traditional BPO, BPaaS seamlessly integrates technology and services into your existing environment, employs automation to minimise human errors, provides real-time visibility and effortlessly scales to accommodate organisational change.

But the defining factor that truly sets BPaaS apart from BPO is the emphasis on service. While BPO merely allows you to delegate tasks to maintain the status quo, BPaaS leverages process, technology and service in tandem to stimulate innovation, unlock new opportunities and offer more to your employees. 

Look for a partner, not just a provider 

It’s entirely reasonable to have reservations about outsourcing crucial HR processes in the middle of the ongoing battle for talent. Historically, outsourcing providers have operated as mere providers. They do the work and hand it off with little communication. However, with the right BPaaS partner, your organisation can achieve much more. 

The process starts by collaborating with your BPaaS partner to outsource manual, low-value-added activities that currently consume a substantial portion of your team’s time. And it’s all done within your current business systems, eliminating the need to configure integrations and endlessly pass data back and forth. 

In the realm of payroll, this may encompass payroll administration, payroll tax management, wage garnishments and global payroll support to alleviate administrative burdens. For benefits, it could entail benefits administration, reconciliation and continuation processes. This strategic outsourcing liberates your staff to focus on higher-value activities that drive employee satisfaction and engagement. 

A true partner also looks beyond the processes to the people at the end of every transaction. To do so, a leading BPaaS solution will also offer a comprehensive array of features designed to enhance employees’ financial and mental wellbeing. These offerings may encompass flexible pay options such as earned wage access, direct bill payments through payroll, automated income and employment verification, benefit decision support and more. 

Whether or not you offer employees these solutions can play a big role in talent acquisition. A 2022 study found that 84 per cent of employers agreed that offering financial wellness tools like these helps to reduce employee attrition. Additionally, 81 per cent affirmed that they also help attract stronger candidates. What better way to provide these solutions than through the same partner who specialises in payroll and benefits? 

Unlocking potential with OneSource Virtual 

As the battle for talent rages on, businesses are exploring innovative ways to navigate the changing HR landscape. With BPaaS, organisations can achieve operational excellence, foster innovation and provide their employees with extraordinary experiences, ultimately driving growth and success in a highly competitive environment. 

OneSource Virtual is dedicated to empowering customers by enhancing their capacity for growth through co-sourced HR and finance and accounting solutions. Operating across diverse industries in North America and EMEA, OneSource Virtual’s expert teams bring profound knowledge and experience to deliver comprehensive solutions and services to more than 850 BPaaS customers.

Learn more about OneSource Virtual at onesourcevirtual.com

By Trey Campbell, CEO, OneSource Virtual