If you’re a large enterprise in the BPO sector, outsourcing your HR activities can help you focus on core business activities. After all, HR plays a crucial role in helping organizations with high-volume recruitment, employee engagement, and payroll and benefits administration.
But what is HR in BPO? And how can BPO companies adapt changes to stay relevant while managing international stakeholders? Let’s find out.
What is HR in BPO?
Essentially, HR BPO is a process where an outsourcing agency performs HR roles and responsibilities on a company’s behalf. These third-party HR departments do the same tasks as their in-house counterparts, such as sourcing, recruitment, and onboarding.
But what exactly sets HR in BPO apart from HR in other industries?
Outsourced HR departments can either be:
- HR outsourcing firms that manage just a few HR tasks or
- Professional employer organizations in charge of all your HR functions
Why Do Companies Outsource HR?
Some businesses outsource to run their business more smoothly and streamline workflow. HR BPO companies can help organizations improve overall efficiency and prioritize employee productivity.
When companies partner with HR BPO companies, they can grow their business, build lasting partnerships, and achieve their business goals.
How Important is HR to the BPO Industry?
One of the things you might be asking is, “What is HR’s role in the BPO industry?”
Even though the role of HR includes payroll, compensation, and taxes, its role extends beyond these areas. HR also helps team members stay motivated despite the regular humdrum routine of their 8-to-5.
More importantly, HR ensures business continuity by identifying recruitment and engagement issues to curb attrition.
What HR Tasks Can Companies Outsource?
HR BPO companies can handle several areas of HR and employee relations on your firm’s behalf. We’ve listed a few below:
- Payroll & tax administration - Third-party HR teams can handle your payroll and tax functions and settle any problems that require immediate attention.
- Talent recruitment - Working with the right HR BPO companies can help you fill urgent vacancies. These firms will conduct the hiring process end-to-end so you won’t have to worry about interviews and onboarding.
- Risk prevention - Besides recruitment, HR departments can address issues and avoid conflicts or lawsuits.
- Performance management - Effective performance management gives businesses a clear glimpse of overall efficiency, alignment, and company-wide goals. If you don’t have time for this HR task, you can ask for help from an HR BPO company.
- Compensation & benefits - Your business can retain employees with competitive, fair compensation. Outsourced HR teams can recommend benefits like 13th month pay, medical benefits, financial wellness, and more.
Why Should BPO Companies Adapt to Changes in HR?
As HR continues to evolve in today’s world where hybrid is the future of work, there’s a need to stay future-proof with a holistic HR strategy. Consider how job profiles are changing and require a pivot in current recruitment processes.
If the current landscape teaches us anything, BPO companies need to stay competitive and make recruitment as a vital part of business ops. Working with a reliable HR partner can help offload non-core business tasks and introduce innovative strategies to improve hiring practices and employee relations.
HR Challenges in BPO & How to Address Them
Handling HR in BPO comes with unique challenges. Let’s dig deeper into these issues and how to overcome them.
Low Employee Morale
BPO workers operate on a high-demand, 24/7 schedule making them more prone to stress and burnout. To top that off, they often have limited opportunities for growth, which could harm employee morale.
Consider how low motivation could pull down employee retention rates. If you want team members to stick around, introduce initiatives that can help build engagement and morale.
What Your BPO Company Can Do
To keep your employees motivated, make sure your outsourcing partner addresses the following:
- Recognize employee achievements at work. Even the simplest of praises can motivate team members. These positive comments let employees know that they’re on the right track and can help them feel more motivated.
- Encourage professional growth. Promote top performers and implement a career development plan that defines each employee's career path.
- Set clear, achievable goals. Straightforward, actionable goals will help your team members deliver expected results.
BPO companies face the struggle of high turnover rates. Did you know that the Philippine BPO sector recorded a 30% to 40% attrition rate in 2023?
Several factors contribute to these figures. For example, some workers decide to leave because they want better benefits, flexibility, and job opportunities.
What Your BPO Company Can Do
To improve employee retention, you’ll need to identify why your employees resign. Get more insights and partner with an HR company that conducts effective exit interviews.
After identifying overlaps in responses, develop new programs or initiatives to make employees stay. For example, you can consider offering flexible working arrangements or a more robust compensation package.
BPO companies provide different training programs, such as production training for new or transferred staff and learning and development training for managers. But despite implementing these programs, there’s little investment in training rank-and-file or support staff members.
What Your BPO Company Can Do
Ask your outsourcing partner to assess your current training program. Identify what needs to change to contribute to the professional growth of your rank-and-file employees. Build your training programs around employee skills, knowledge, and needs.
Streamline HR Processes in Your BPO Company with Sprout
Whether you decide to hire an in-house team or partner with an outsourcing company to support your HR function, a HR department is a must. HR is essential to BPO companies because it helps build meaningful employee relationships, ensures business continuity, and contributes to company-wide growth and success.
As HR continues to evolve, you’ll need a streamlined HRIS to stay relevant. Use the holistic Sprout ecosystem to manage recruitment, employee engagement, learning opportunities, and more. Schedule a demo today to learn more.
If you want to stay up-to-date with the latest HR trends and best practices, check out the Sprout blog.