HR Outsourcing Service in the Philippines is becoming common nowadays. With the low labor rate in the Philippines, outsourcing HR is happening more and more each day since paying employees to do HR work is very frustrating as this could not earn revenue for the company. Even with this being said, Human Resource Department plays a significant role in an organization. It does not only handle employee payroll, health administration and tax filing but it also handles legal compliance, organizes training and workshops, and maintaining employee records. Human Resource Department could be defined as both difficult and time consuming department. Thus, a lot of companies choose to outsource HR instead.

So what really is HR outsourcing service?

HR outsourcing is when companies hire external provider to manage some personnel functions. To be specific, it offers not only normal HR functions in a company but also employee lifecycle management, benefits administration, regulatory compliance, training and development, employment engagement and retention and payroll administration. With this, a lot of companies avail HR outsourcing services since there are numerous potential benefits, namely:

  1. saves costs
  2. saves time
  3. minimizes paperwork
  4. helps in refocusing tasks on revenue-generating activities
  5. helps in reducing workforce turnover
  6. attracts more qualified employees
  7. minimizes employer liabilities
  8. provides a more dependable and professional compliance

To be specific, outsourcing HR would help increase the efficiency and effectiveness of the companies. These efficiencies enable the company to devote its time and money to other business functions.

Ever seeing the productivity level of your company slowing down due to administrative process? Or are you always seeing your employee always engaged in unnecessary time consuming task? If yes, you should start looking for an HR outsourcing company. Besides the deciding factor that would most probably be the cost, there are other factors that needs to be looked at, such as the cultural fit and the commitment to quality of the company. Whether small or medium size enterprise can benefit from outsourcing some HR responsibilities and but finding the right HR firm is the first requirement that you need help with.

To get deeper in understanding HR outsourcing company, there are three types namely: Human Resources Organizations (HRO), Professional Employer Organizations(PEO), and Administrative Services Organizations(ASO). First, Human Resources Organizations is an organization where all HR are outsourced and it is where the company has 1000+ employees. HRO takes full responsibilities when all HR functions are outsourced. Second, Professional Employer Organizations is an organization where there are under 200 employees. To be specific, it offers HR and administrative services to small-to-medium size enterprises and they decrease risk and insurance costs. Lastly, Administrative Services Organizations is an organization where there are 50 and more employees and they provide administrative services to the partnered company. ASO is mostly popular in a medium size company. With the different types of HR outsourcing service, companies  always look for the  Professional Employer Organizations because it is advantageous compared to Human Resources Organizations and Administrative Services Organizations.

So how do you look and choose the right HR outsourcing company for you?

Here are 5 tips in choosing the HR outsourcing company:

1. Check the cultural compatibility

When finding an HR outsourcing service, it is best to understand whether there is a cultural compatibility or not. Culture compatibility impacts the relationship between the two parties. Understanding the culture of the company would help you determine its values, vision and goals. In addition, culture of the company help you understand the stage for how people work together in the company. With strong organizational culture, it will help you in your growth and development. 

2. Check the communication

Communication is key as outsourcing HR requires perfect communication between the two parties. Communication between the two parties will determine whether both parties could work well together and smoothly. Specifically, whether the team leader could assign to the tasks properly to you. Since the ones working together would be the two parties, communication of both should not be underestimated. With this being said, it can be seen that communication is critical for success.

3. Browse their client list

Understanding the clients of the outsourcing provider is important before signing a contract with the company. You can check what kind of companies the HR outsourcing company have worked with previously as this could help determine what kind of company they are. With this, you could understand in what industry are they. In addition, you should know whether the company could maximize your opportunities and performance so that you will have growth in your assigned company.

4. Understand its service and training

Understanding the services that the HR outsourcing company is offering is important since it is essential for you know in what service are you capable of. Specifically, you would know what can you offer to the company to become its asset. On the other hand, understanding the training that the HR outsourcing company would offer is also important. This would determine whether the HR outsourcing company could enhance your employee skills. To be specific, whether you will be able to gain knowledge and enhance your compliance, reduce risks and increase your efficiency. In addition, through training, this would enhance your employee morale and retention.

5. The flexibility of its contract

There must have a good flexibility on the contract in order to maintain the good professional relationship between the two parties. Having a wrong sort in a contract may lead to  higher costs and frustrations between two parties.

The Philippines, known as the 3rd largest English-speaking countries in the world, has 58 firms under Human Resource Companies. Springboard is considered as a startup in the human resource industry. They offer a human resource services and solutions to their local and international clients. Currently, most of Springboard’s clients are in the Business Process Outsourcing (BPO) industry. Some of its well-known clients include Accenture, JP Morgan Chase, Teletech, Teleperformance, Sun Life Financial, Manulife and Food Panda.


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