Managed HR – The Emerging Concept
A rather modern management term, human resource was first coined in the 1960s. These days, human resource management plays an important and pivotal role in the growth and progress of an organization. Almost every company are now enrolling and executing human resource programs to manage their administration tasks including recruitment, payroll, and human recourse development functions. Though the term human resource management has nothing to do with the logical or ethical development of human spirit, it addresses to various business needs by increasing the worth of individual human resource. Also, HR management systems help companies to meet their need of eligible candidates. Some HR programs are specially drafted to engage the employees with their individual companies.
There are many companies focusing on the development of their human capital. The bottom line of most of these companies is to develop their business by increasing the human effort. In fact, efficient utilization of human resource alone can help an organization to achieve its business objectives. The following factors can help an organization to utilize its human resource management system efficiently:
- Aligning the human resource of the organization to its business objectives
- Measuring the performance of human resource at a regular interval
- Maintaining an atmosphere of harmony and performance innovativeness
- Articulating the roles of each employee clearly and explaining the expectations of the organization
- Identifying the skill set gaps of each employee and bridge them through HR trainings and other learning measures
In addition, the organization needs to manage its day-to- day HR management process such as recruitment process, compensation and benefit administration, induction attendance, and leave management. This process, however, involves a lot of paperwork, which in turn is a major issue for small and mid-sized companies. Small companies with limited resource need to spend a large amount of time and effort to deal with employee paperwork and other aspects of HR management. As a result, many organizations are now opting for managed HR services where they outsource their HR-related jobs to a company specializing in providing HR supports.
One simple reason why more number of organizations is opting for managed HR services is to enhance its efficiency. It is not possible for an organization, mainly focused on growth, to concentrate on managing its human resource effectively. This is especially applicable for small businesses with no HR department. There are many reasons for this, including lack of time to focus on HR management; unaware of human resource practices; lack of quality HR managers, and unaware of the advantages of implementing HR practices. All these, and the apprehension of the cost of setting up HR practices encourage many organizations to opt for managed HR services. In addition, there are many benefits of managed HR service.
Benefits of Managed HR:
- Increase focus on core activities of the organization
- Avail HR expertise at an affordable price
- Improve productivity with prime focus on core business
- Professional HR approach
- Saving management time on non core issues
- Increased employee retention
- Transparency within the organization
At Kranium, we believe in developing and nurturing of employees to give your business a competitive edge, building opportunities for every individual. With our seven years of experience in HR management space, we offer competency-driven HR solutions to help springboard your organization’s growth. Our latest and innovative techniques provide high quality HR management system that fit the changing needs of industry.