The definition of HR management is “a strategic focus on creating the best possible work environment for every employee in the company”. It may sound somewhat simple, but the HR function is very broad. It embraces areas like training and career development, benefits, compensation, employee and labor relations, business partners, data collection and legal issues. A small business owner would have to hire several individuals who wear many hats. This can become expensive plus no one person specializes in one particular function.

Over 70% of all businesses outsource one of more elements of their business. In the final analysis, the bottom line is the main reason. When certain roles and functions are outsourced, such as Human Resources, the company is saving on salaries, taxes and benefits. In addition, the company has access to a broad range of specialists who are educated in such areas as employment law and compliance.

The role of outsourced Human Resource Management

Outsourced HR management puts a strong focus on your most valuable resource - your employees - as a major function of business operations. Professional HR outsourcing companies will find candidates with the best mix of skills, personality, and vision to help grow the culture and future of the company. Then, they determine the best ways to compensate employees and keep them motivated and engaged, such as rewarding them for regularly exceeding goals and making productive contributions towards company growth.

An important function of strategic human resource management is to ensure a safe work environment for everyone. They want to protect employees' physical safety by managing the work environment and preventing injury or illness. A Human Resources consultant will also manage employees' rights and responsibilities as stated in the company handbook and oversee strict anti-discrimination and sexual harassment policies. A company in violation of discrimination or harassment laws could face a lawsuit that amounts to several hundred thousand dollars or more. It is very important to make sure a highly experienced human resources professional or consultant monitors your legal compliance.  

Human Resource Management best practices

Outsourcing HR helps build revenue through strong execution of ideas and activities. With a series of best practice initiatives, an HR consultant can assist companies with accelerating adaptation to change through sensitive issues like corporate restructuring or mergers.

Strategic human resource management helps other departments develop strategies to build the business and approach new ideas that help the company's growth. If you are in need of a Human Resources consulting company to help on an ongoing basis or need help with a project, contact Platinum HR Consulting Group to discuss your needs.