10 benefits of HR outsourcing. Find out how Sii Poland optimizes clients’ operational processes
Outsourcing is a common practice in various business sectors. While it’s widely recognized in the IT industry, it is also extensively used in human resources departments (HR), in various areas such as payroll management, recruitment, employee benefits administration, performance monitoring, training, career development, and competency building. Companies considering HR outsourcing may outsource specific processes or the entire range of HR services. Below, we present the top 10 benefits of this approach that numerous companies have already leveraged.
1. Enhancing the efficiency of the HR department
Outsourcing companies, such as Sii, have extensive knowledge in human resources and a deep understanding of HR processes. After a thorough analysis of the procedures and practices in place within an organization, they can suggest both minor and significant changes that should be implemented. For example, they might propose reducing manual tasks, eliminating unnecessary approvals, or introducing notifications and escalations that speed up task execution. Another suggestion might be to implement KPIs to monitor the performance of both individual employees and the entire team. Such changes increase team efficiency, reduce delays, and help in meeting task deadlines.
2. Improving innovation and quality in the HR department
HR outsourcing service providers offer access to the latest and most advanced tools and technologies. They utilize the latest solutions where HR processes are well-planned and automated, including cloud-based software, artificial intelligence, and analytics.
Modern solutions, such as Robotic Process Automation (RPA), offered by Sii Poland, successfully reduce manual tasks. These tools monitor KPIs and maintain high-quality data, enabling quick responses to deviations from predefined assumptions. Advanced systems, such as TETA HR from Unit4 in Poland, also provide a self-service platform for employees to manage personal data and documents through applications like Teta Me.
3. Access to experts and the latest trends in HR
HR outsourcing helps companies stay up-to-date with the latest trends and best practices. It also provides access to experienced professionals who can handle complex, specialized tasks and offer professional support.
4. Increasing HR flexibility
The described approach is an excellent solution for addressing growing or decreasing needs, such as changes in the number of employees within an organization, seasonal fluctuations, providing short-term support for specific projects, or handling increased workloads due to internal organizational changes.
This is especially important when it is known in advance that the increased demand for HR processes and personnel will only be temporary. Such an approach helps companies avoid the risks and costs associated with hiring and later dismissing employees.
5. Reducing the cost of the HR area
External services enable companies to save on expenses associated with employee recruitment, salaries, mandatory social security, benefits, and other related costs. This includes the cost of training the HR team and legal services, which are necessary to monitor changes in the law and their interpretation. Additionally, it reduces costs associated with office space rental and purchasing specialized software supporting individual HR department processes. Additional savings in HR outsourcing come from companies like Sii being able to execute these processes much cheaper, thanks to streamlining and automation, and the ability to delegate tasks to employees located in regions with lower labor costs.
6. Better data security
HR departments handle vast amounts of employee personal data (e.g., PESEL numbers, email accounts, bank account numbers, and phone numbers), which are legally protected. Protecting this data is critical for all organizations.
That’s why outsourcing companies such as Sii place great importance on data security and proper processing. For our customers, we implement modern HR systems, such as the aforementioned TETA HR by Unit4, which offer numerous features to secure access to sensitive data, enhancing their storage security. In addition, the Cybersecurity Competency Center expands the scope of protection by implementing advanced Data Leak Protection (DLP) class solutions that further protect against data leakage, providing our clients with an even higher level of security
7. Risk mitigation
Laws and regulations regarding hiring, social security, taxes, and data management constantly change. Organizations must adapt their systems and procedures accordingly. HR outsourcing ensures the timely implementation of these changes, minimizing the risk of non-compliance with the existing regulations.
8. Raising employee satisfaction
The benefits of outsourcing HR services, such as gaining constant access to experts, modern processes, and technology, create a positive and supportive work culture that increases employee satisfaction, engagement, and retention over the long term.
9. Enabling local support
Outsourcing HR services can be particularly beneficial when opening a new branch in a specific country, such as Poland. It enables you to handle HR responsibilities without forming a new team or overloading your existing employees with extra tasks while reducing the risks linked to an inadequate understanding of local laws.
10. Raising the competitiveness of the company
Outsourcing certain processes, including HR services, can release time and resources to focus on core manufacturing, sales, or service activities, and ensure the highest quality of products and services.
HR outsourcing success stories with Sii Poland
The HR team at Sii Poland consists of experienced experts with broad business knowledge, gained through the implementation of services for numerous clients from various sectors, including IT, banking, manufacturing and many others. Sii recommends to clients proven, best market practices, both in terms of tools and human resources management processes, based on experience from local and international projects.
Sii Poland has helped clients streamline HR processes and achieve operational efficiency. For instance, Sii collaborated with an American multinational technology company to manage HR processes for approximately 3 000 employees. The scope of the cooperation includes among others:
- maintaining employee documentation,
- entering data into the SAP system,
- monitoring periodic examinations and health and safety training,
- providing support for the client’s employees.
— Our services provided to the client cover managing the entire HR Administration process in Gdańsk and Wrocław, as well as servicing all employees of the company. Sii’s support resulted in the ongoing implementation of numerous improvements which translated into increased efficiency — states Ewa Lisawa-Sztandor, Offering Lead at Sii Poland.
Within another project, Sii Poland’s HR Operations team provided support in the execution of HR processes for more than 2 700 client’s employees in various countries.
The tasks of Sii specialists included, among others, onboarding, updating the terms and conditions of employment in Workday, managing working time, supervising the verification of employee data, handling absences, preparing employment certificates, offboarding, as well as answering any employees’ questions.
— Our expertise in the HR processes area has ensured the updating of procedures, continuous process improvement, high-quality employee service, and timely execution of tasks — adds Ewa Lisawa-Sztandor.
Making the right partner choice in HR outsourcing
Deciding to outsource HR processes requires clearly understanding goals and expected support. Carefully weighing the pros and cons is crucial, as partnering with a reputable provider can minimize risks and significantly relieve internal teams
— Outsourcing HR processes allows companies to focus on core business activities, driving growth and ensuring high–quality service delivery, ultimately enhancing overall competitiveness — emphasizes Natalia Buczel, Business Services Competency Center Director at Sii Poland. — By leveraging specialized expertise and advanced technologies, companies can achieve greater efficiency and effectiveness in their HR operations. This optimizes administrative tasks and frees up internal resources to concentrate on strategic initiatives that directly contribute to business development. In today’s market, having a strong focus on core business activities while maintaining efficient HR operations can be a key differentiator — she concludes.
Improve your HR processes with Sii Poland’s specialized solutions. Contact us to learn how our outsourcing services can benefit your business.