Human resource outsourcing service, simply put, is the use of external personnel to carry out one or several specific tasks of one or more departments within a business. Along with the rapid development of major cities such as Hanoi and Ho Chi Minh City, this service has become increasingly familiar due to its outstanding advantages, such as saving part of the labor cost, time spent searching for and recruiting qualified personnel, etc.
This article provides an overview of human resource outsourcing services and the benefits that have made them increasingly popular and widely adopted by businesses.
What Is Human Resource Outsourcing (HRO)?
Typically, large enterprises or start-up companies looking to save costs often use human resource outsourcing services. HRO refers to hiring an external service provider to handle human resources tasks for a business.
There are various reasons why a business may want to hire external personnel to handle part or all of the tasks originally meant for internal employees.
Using outsourced personnel can provide high-quality resources that meet business needs quickly without requiring training.
For example, part-time staff for major brands; or highly qualified professionals handling specialized tasks, etc.
Therefore, instead of hiring a full-time employee to handle a specific task in the company, businesses can opt for outsourcing through a service contract with a labor supply company.
Benefits of Human Resource Outsourcing
The benefits of human resource outsourcing for businesses are obvious and undeniable. First and foremost is cost savings, followed by reduced risks for high-specialization tasks, and increased flexibility to help businesses quickly respond to market demands.
📌 Save Time and Costs
Recruiting personnel for a specific position requires time and effort from recruitment staff. Not to mention, the need for labor might only be temporary—for replacement purposes or because the task only requires short-term manpower.
The labor market doesn’t always meet the right quantity or quality of personnel a business requires. This is not to mention the training costs, upskilling, and statutory insurance payments required by law when signing labor contracts.
Therefore, choosing HR outsourcing to meet large-scale, short-term, or high-skill labor needs is genuinely necessary for businesses.
For instance, consider accounting services for start-ups. Is it really necessary to hire a full-time accountant when the company is just starting and lacks many resources? Or shopping centers and supermarkets may need a large number of part-time cashiers or cleaners.
📌 Reduce Risk and Increase Business Flexibility
When businesses outsource expertise, especially in high-skilled areas (such as accounting), they ensure that their operations are kept up to date with the latest regulations and policies—thus maintaining service quality.
As a result, businesses can minimize risks from outdated practices or legal non-compliance due to lack of expertise or delayed updates.
Moreover, using HR outsourcing services guarantees experienced personnel from the service provider. This also allows businesses to access experts with deep knowledge in specific areas, helping to attract and retain talent in time.
Conclusion
Human resource management requires businesses to invest substantial time and costs. Using human resource outsourcing services helps management alleviate concerns about labor shortages for specific projects.
This allows them to allocate more time and budget to core strategies such as development or building customer engagement channels.
Outsourcing and using skilled labor also helps businesses remain flexible in the market, contributing to project profitability and success.
