Wednesday, January 12, 2022

Three of top of mind human resource management trends

 Post COVID-19: 3 Top of mind human resource management trends

1/ Just in a short window of time, the COVID-19 has led to a dramatic change in the major functions of human resource management (HRM). While COVID-triggered crises are becoming less frequent and less severe, some businesses are still having trouble managing their employees during these testing periods. This article covers several HRM trends that businesses should keep in mind to adapt to the new normal in the post-COVID era.

2/ Develop comprehensive HRM strategies:

Changes in business trends post COVID-19 have created challenging situations for HR managers and HRM practitioners. As strategy development and workforce transition become more vital than ever, businesses need to rethink and re-evaluate their key people during and after the COVID-19. 

Develop comprehensive HRM strategies post COVID-19. (Source: Internet)

Businesses are also required to change their talent management system to identify, engage and retain high-potential employees. An increase in wages and perks can be used to motivate employees and boost their productivity.


As COVID-19 rears its ugly head, businesses are forced to move fast and adjust to new realities. In times like these, HR remains a major contributor to organizations. Practising HRM trends provide effective solutions for businesses to retain the workforce and embark on faster recovery from COVID-19 impacts.

2.2/ Outsourcing HR responsibilities

Extended business suspension, failure to meet certain COVID-related safety requirements, and a lack of time for reskilling and guiding employees’ journeys in volatile markets have left businesses with fewer alternatives than to terminate a significant number of labor contracts. While falling revenue and ineffective budget plans as a result of COVID-19 posed a roadblock to some, other agile businesses have found a way to deal with labor shortages and are in a better position to thrive after COVID-19. 

Numerous waves of COVID infections have resulted in a globally significant move towards HR outsourcing as a one-stop-shop for budget flexibility, quality of new hires (experienced, skill-specific, and best-suited to each period), and other complicated HR functions. SpendEdge, the global provider of market intelligence solutions, forecasted that the HR outsourcing procurement market was poised to experience spend growth of more than USD 25.92 billion in the next five years at a CAGR of over 5.84%. 

Outsourcing recruiting and training efforts can help businesses build a pipeline of already-specialized talents and achieve the highest performance. By transitioning time-consuming administrative management to HR outsourcing providers, businesses can optimize workflow and keep in-house teams focused on otherwise essential tasks to enable quick recovery from COVID-19.

Additionally, HR outsourcing results in cost savings in the new normal. Businesses can eliminate benefits administration and unemployment claims by contracting with HR outsourcing providers. Statutory benefits such as medical insurance, social security, vacations, and paid leave are all included in the outsourcing rate. 

HR outsourcing offers a flexible solution that ensures as-is business operation, be it pre-COVID or post-COVID. When businesses need to stretch or downsize the operation due to unexpected events, they can just go to outsourcing to temporarily adjust the number of staff. This way, they successfully avoid labor shortage or surplus and maintain just the right number of employees.

For HR outsourcing delivering the best results, consider the following practices:

  • Have a thorough understanding of HR outsourcing providers: Do they stand out in the industry? What is their hiring process? Is their HRM effective? 

  • Develop HR standards to easily pick out the right providers with suitable pricing plans and specialization. 

  • Develop quality requirements and regularly oversee the work implementation for timely risk management.

HR outsourcing helps businesses ease the financial burden, save time, and focus on what matters. (Source: Internet)

2.2.1/ Support employees' mental health 

Managing the mental health of employees impacted negatively by COVID-19 becomes a priority. Indeed, the pandemic and resulting income insecurity/benefit reduction have exposed a large number of people to significant mental health risks. Investments have been made in activities aimed at prioritizing employees' mental health and well-being, boosting morale, and assisting them in resuming their pre-COVID levels of productivity. 

Activities that address mental health make employees feel supported and be more productive. (Source: Internet)

Consider the following approaches to ensure the best results:

  • Be there for your employees, listen genuinely to their stories and their needs.

  • Regularly communicate with employees.

  • Provide adequate resources to drive employee performance in the new normal.

2.2.2/ Building training programs

COVID-19 has placed a challenge on businesses to help their employees adjust to a new work environment. The importance of workforce transition and employee training becomes more pronounced after COVID-19.

Employee training should be centered on the following skills: 

  • Remote management skills: These skills will keep employees motivated and engaged while working from home.

  • Leadership skills: Managers need to identify and master key leadership skills to navigate business growth.

  • Adaptability skills: These skills will help employees build resilience for a fast-changing environment and post-COVID recovery.

2.3/ Maintain flexible work arrangements

One of the most notable trends after the outbreak of COVID-19 is the shift away from office-centric culture to an employee-tailored workplace. Working from home has become a norm for most businesses. Employees now can enjoy more flexible work options that suit their lifestyles. Recently, PwC has told 40.000 US-based employees that they can work remotely from any part of the country in perpetuity. 

Flexible work arrangements benefit both employers and employees. (Source: Internet)

Employee engagement and cohesion provide the key to improving human resource management. Making employees’ work-from-home experience enjoyable, healthy, and stress-free, as a matter of course, is equally important. 


Tuesday, January 11, 2022

HR outsourcing vs insourcing: Which is the better option?

HR outsourcing vs insourcing: Which is the better option?

Taking these following factors into account will enable businesses to make the best of both external and internal HR teams.

Recruiting the right talents or outsourcing HR services remains a topic of flexibility for companies as their business progresses. Weighing the pros and cons can be a headache. Here are some tips that can help you ensure the equilibrium between HR outsourcing and insourcing.

Consider HR outsourcing for essential tasks unmet by the in-house team

The need for external HR providers is obvious when some tasks demand specialized skills unable to be performed by internal employees. For example, it is reasonable to outsource HR with tech expertise to carry out some relevant business activities when your staff is not that tech-savvy.

Consider HR outsourcing for essential tasks unmet by the in-house team

(Source: Internet)

Thanks to the specialized expertise of the service provider, those critical tasks can be carried out by a team of high-quality, experienced, and skill-specific personnel. As a result, your in-house team could save time and effort to concentrate on strategic development. 

In addition, this approach provides businesses more flexibility in HR budget planning. In essence, this is no more than a pay-as-you-go service of a user–provider relationship based on the arising need from time to time regarding business, projects, or even seasonal demand.

Run a cost-effectiveness analysis to determine whether HR outsourcing or insourcing is the way to go

When it comes to deciding between utilizing internal staff or contracting to a third party, business needs must be taken into consideration, as there is no “one size fits all”. In particular, the companies must outline the benefits and challenges of these two options.

Insourcing keeps the company’s work within control. However, the fixed cost for the HR department or professionals may cause a huge burden for small businesses with fluctuating revenue streams. 

Businesses need to analyze the benefits and challenges of both HR outsourcing and insourcing prior to decision-making. (Source: Internet)

Besides, as long as business-specific requirements are defined, external HR services could be custom-built by third-party providers to ensure the best results during the contract term, thereby facilitating better cost management in phases.

Keep core functions at hand while outsourcing

Entrusting internal employees with key business activities is a great way of hitting two targets with one arrow – motivating in-house staff to promote better performance while reducing the dependence on the HR service providers.

The decision to hire in-house or contract human resources personnel is based on a thorough analysis of business demand. External human resource services are viewed as the ideal solution for businesses looking to optimize their human resource management processes, ensuring a sustainable, fit-for-purpose allocation of resources to core functions.

As a result, outsourcing human resources done right for the appropriate tasks will provide you with the additional time and budget conducive to operational efficiency.