In this interview with Daniele Tramontin, Commercial Director at Adecco Outsourcing, we explain some of the advantages of partially or fully outsourcing your company’s HR department.
Increasing numbers of companies are opting to outsource services. The benefits include added efficiency when undertaking certain projects, optimising resources and access to advanced technology.
For HR in SMEs, being able to digitise some tasks also gives them a competitive advantage, as does support with document management and payroll and improved recruitment processes, among others.
To find out more about how growing companies can be more competitive thanks to partial or full outsourcing of their HR department, we interviewed Daniele Tramontin, Commercial Director at Adecco Outsourcing.
As an outsourcing company specialising in the processes that are not part of a business’s primary activities, we analyse which industries need this type of service, when it is best to outsource and the short- and long-term benefits, among other things.
What do we mean when we talk about outsourcing HR?
Outsourcing is when we delegate certain standalone and perfectly distinguishable processes to an external company. There are a number of processes suited to outsourcing within the HR department, such as payroll management, staff administration, recruitment activity or development plans and Learning Process Outsourcing (LPO) management, which usually take up large administrative resources.
Outsourcing these processes does not simply mean handing over the functions, but rather a redesign of workflows, in which the methodologies and technology provided by the outsourcing company are key. According to the Flexibility report by the Adecco Group, 7 out of 10 companies turn to outsourcing because they are looking for improved specialisation and digitisation of the processes in question.
For what type of companies (among SMEs) do you recommend partial or full outsourcing of the HR department?
In general, SME or not, outsourcing is a strategic decision for any company that wants to concentrate their efforts and internal resources on processes that deliver value to their core business activity.
So, perhaps the companies I would recommend some HR outsourcing to would be those that, due to the type of business, have high seasonal staff fluctuations or complex roles or remuneration policies.
When outsourcing is partial, which areas are best to prioritise?
Common sense tells us that the priority areas should be those that are more difficult for the primary company to manage, whether that’s due to lack of knowledge, adequate resources or the necessary technology.
From experience, in order of priority, the most commonly outsourced services are payroll processing, training, recruitment and LPO, although this last one is more relevant for large-scale businesses.
Which sectors are most in need of outsourcing services?
The main sectors that require outsourced services support are food and drink, retail, finance and beauty, as well as e-commerce.
As regards profitability, what benefits does outsourcing services bring both on a short- and long-term scale?
The main aim is for the outsourcing company to demonstrate their specialisation in the outsourced process. From there, each client will have a process organised in a certain way, connected to different departments and systems.
Outsourcing, therefore, will deliver more process efficiency as the company gets to know all the client’s business variables that affect this process. Ultimately, the outsourcing process starts to be more effective from the medium term.
From a qualitative point of view, outsourcing makes processes more professional, ensured by setting process standards with the implementation of service level agreements (SLAs) and Key Performance Indicators (KPIs), and above all a focus on continuous improvement.
What impact has the Covid-19 crisis had on outsourcing services?
Companies that have outsourced some services during the health crisis have witnessed the importance of how outsourcing companies can leverage flexible resource management, although it has undoubtedly represented a huge challenge for outsourcing companies.
In contrast, for businesses responsible for IT processes such as MODIS, the health crisis has meant a growth boom due to companies’ massive digitisation requirements.
What are the most in-demand digital projects and tools in your field?
As we have said, the health crisis presented an important milestone in terms of how outsourcing companies are managed. In our case, fortunately during the crisis we had got to the point at which lots of investment had already been made to guarantee remote working.
Therefore, we were able to adapt certain in-person services, both at our offices and at client workplaces, to teleworking in a few days for more than 1500 workers. In this vein, the main efforts in digitisation have been dedicated to installing virtual desktop infrastructure (VDI) in remote offices and cybersecurity, to guarantee continuity of operations.
What trends will mark the future of HR outsourcing?
If we analyse our international context and see the level of outsourcing in companies, especially in English-speaking countries, we can confidently state that outsourcing will continue growing sustainably in other countries like Spain, and the trend will be towards specialisation.
The concept of the multiservice company will diminish in favour of service companies capable of providing added value to the client, due to their knowledge of process and service methods, as well as having established professionals and technology.
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About Daniele Tramontin
Daniele Tramontin has a career history spanning more than 18 years in the business sector, 14 of which with the Adecco Group. He has performed a number of roles at the company, including Madrid Branch Manager, Sector Manager at Adecco Distribution, Director of International Sales at Adecco and Director of Eurovendex and Adecco Talent BPO.
As the head of Adecco Outsourcing, he is responsible for developing product value propositions for the company’s six specialist divisions.