Frequently Asked Questions

#1. What Is HR Outsourcing? HR 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 of combination of service providers.

In this sense the HR Outsourcing service providing firms or HR Outsourcing Company can be divided into four categories depending on the services they offer as,

• PEOs (Professional Employer Organization)
• BPOs (Business Process Organization)
• ASPs (Application Service Providers) and
• eServices

NeemTree Consulting is a PEO (Professional Employer Organization) which handle full responsibility of a company’s HR Functions like

• Recruitment And Selection
• Training And Development
• Benefits Administration
• Compensation Management
• Performance Management And
• Workforce Management

Whatever your company's human resources requirements, there's an HR outsourcing firm out there to meet those needs. Some HR outsourcing firms are generalists, offering a wide variety of services, while others are specialists, focusing on specific areas such as payroll or recruiting. Depending on the size of your business and how much control you want to maintain over HR functions, you can either outsource all your HR tasks or contract for services a la carte. The basic services offered by HR outsourcing firms may include:

• Overseeing organizational structure and staffing requirements
• Recruiting, training, and development
• Tracking department objectives, goals, and strategies
• Employee and manager training
• Benefits administration
• Employee orientation programs

Businesses that outsource HR are typically small-to-midsize firms with between 25 and 1,500 employees. These businesses view HR outsourcing as a strategic tool that relieves them of HR responsibilities and enables them to focus on what they do best. In addition to allowing you to concentrate on your core business activities, outsourcing provides some key benefits, including:

• Providing you with skilled professionals who are focused specifically on HR
• Helping you reduce and manage operating costs
• Improving employee relations

#2. How Do I Outsource Labor To Control Costs? Outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business, and allows you to avoid large expenditures in the early stages of your business.

Outsourcing can also make your firm more attractive to investors, since you´re able to pump more capital directly into revenue-producing activities.

#3. What Questions Should I Ask Before Outsourcing Hr? If you are thinking about outsourcing all your HR needs to a Professional Employer Organization (PEO), make sure you ask a number of key questions:

• Does it have the capability to handle fast growth in your workforce?
• Does it have the depth and expertise to deliver on its promises?
• How does it deliver its services? In person? By phone? Via the Web? A mix of all three?
• If it offers customer service in person or by phone, how available will its account manager be?