Unlocking employee potential is critical to boosting productivity and creating a happier workplace. However, employees may hide their strengths due to workplace or personal challenges.

HR teams bogged down with administrative tasks hinder their ability to serve as talent advisors and culture champions. HR can elevate their role as business partners by outsourcing critical functions to strategic service providers.

HR Outsourcing

HR outsourcing can relieve the burdens of day-to-day tasks for companies. For example, a business might outsource record keeping and compliance like labor law compliance, which can be time-consuming and tedious for an in-house team.

An outsourced provider can handle these functions with efficiency and expertise, enabling an in-house team to focus on strategic activities that help drive the company forward. This shift in focus can lead to a better culture, more capable managers, and greater employee engagement.

Using a provider of HR services also provides access to a broader talent pool. For instance, if an in-house team is looking for a tech expert to assist with a project, the provider may have connections that span the globe.

Some concerns about using an HR service provider include losing control over a critical aspect of business, but that can be overcome by having a carefully created plan and selecting providers who specialize in the types of services needed. This can ensure that essential business needs are met while transferring risk for the people piece of the company to the provider.


Unlike software providers, PEOs form a business partnership with their customers and offer the services, infrastructure, and expertise needed to handle HR administration. In doing so, they can help their customers save time and money by allowing them to focus on strategic initiatives and revenue-generating activities rather than on the day-to-day administrative tasks of HR management.

The primary reason that working with a PEO often results in cost savings is that they have a different economy of scale than their customers. In addition, they have domain knowledge and experience that allows them to perform many HR-related tasks more efficiently than their customers can.

When partnering with a PEO, planning a comprehensive transition process that includes a timeline, roles and responsibilities, communication strategies, and documentation is essential. This will ensure that all internal teams are prepared to shift duties and work with the new provider to minimize disruption and achieve success. Moreover, it will allow companies to benefit from the cost savings of a co-employment arrangement. This includes reduced direct insurance costs, workers’ compensation premiums, and reduced indirect expenses like payroll taxes, compliance reporting, and paperwork.

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Every business must concern itself with recruitment, whether to fill a job vacancy, staff a new department or plan for management succession. Hiring is time-consuming, and employee turnover costs enterprises 600 billion dollars annually.

Recruiting involves advertising the job opportunity to attract talent, short-listing, and interviewing candidates. HRs may use internal and external recruitment techniques depending on the company’s needs. Internal recruitment involves promoting an existing employee to fill the vacant position and saving money on hiring fees. It also reduces onboarding time.

External recruitment includes identifying and attracting job applicants from outside the organization. Employers can leverage an ATS (applicant tracking system) to streamline recruitment processes, such as managing applications, scheduling interviews, and conducting background checks. They should also promote the company’s culture and work environment to attract candidates who align with their long-term goals. HRs should also prepare standardized interview questions to ensure fair evaluation and consider using assessments to gauge candidate skills and personality traits. They can also collaborate with marketing teams to develop a strategic employment brand and create a practical employment experience that will appeal to talent.

Learning & Development

Learning and development is a significant responsibility for any HR team. Its role is to help employees grow in their current positions, improve the quality of work, and prepare them for future roles and opportunities. To accomplish this, HR teams have various training programs in place.

Many companies focus on upskilling their workforce to meet future business needs. This is because of the tight labor market and the difficulty of finding qualified new hires. Training helps employees advance within the company, decreasing turnover and reducing costs.

It may also be responsible for developing leadership talent in the organization. This can be accomplished by identifying professionals ready for managerial roles and providing proper training.

Employees allowed to learn more in their current positions tend to feel more engaged with their jobs and coworkers. In addition, they are more likely to be motivated to succeed at their jobs. As such, the learning and development function should promote a culture of growth to ensure that employees stay happy and productive.

Performance Management

The proper performance management solution can help create a healthy and productive work environment. It sets clear expectations for people and allows managers and leaders to collaborate with team members to develop plans that can lead to professional growth and organizational success.

HR leaders must be prepared to provide training on how to conduct effective feedback conversations with their teams. They must also be ready to reevaluate their performance management process with changes in work models, such as the growing popularity of remote and hybrid working arrangements.

Creating effective employee development and succession planning initiatives requires an accurate, up-to-date picture of high-performing employees. A module enables HR professionals to identify future leaders and guarantee business continuity by tracking employee progress and pinpointing areas for improvement. It also helps managers keep in touch with their team members by enabling them to easily schedule one-on-one meetings and use intuitive goal conversation templates to encourage ongoing, open communication. This allows managers to respond quickly to problems or concerns instead of waiting for an annual evaluation to flag struggling employees.

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