Outsourcing is one of the forms of human resources that many businesses are interested in and used today owing to its advantages for optimizing time and cost for businesses. However, currently, HR outsourcing is divided into many small branches. So what is the main form of HR Outsourcing?
In this article, let's learn with Faro Vietnam about the 4 most commonly used forms of HR Outsourcing today.
Some details about the form of HR Outsourcing
Human resource outsourcing is a form of hiring workforce of businesses through the assistance of HR Agencies to take on specialized jobs that businesses require, as following:
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Lack of good human resources
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In need of urgent human resources
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Save recruitment and human resources budget
This third company is also known as a manpower supply company with the qualifications, good expertise and wide human relationships as well as a large staff to meet all requirements for many different industries.
Forms of current HR Outsourcing
To meet the diverse needs of businesses, outsourcing companies have built and offered 4 service forms including:
It refers to a service that specializes in brainstorming through extensive and multi-industry human relationships.
Businesses that are having a challenging recruitment period because of the specific characteristics of the operating industry can choose this form of Outsourcing to save time as well as quickly fill vacancies. With this form, employees will be completely under the management of the enterprise and do not have any relationship with the HR Agency. Regarding the recruitment cost, the business directly pays the headhunt company and the headhunt company will commit to meet the requirements of the collaboration contract, such as high suitability, recruitment duration and candidate's quality.
- Hiring human resources:
One of the top advantages of outsourcing HR is to provide human resources for businesses, which means that the human resource company will directly recruit and manage the employee, but, instead of working for an agency, this workforce will be distributed to businesses signing the hiring contract with the agency and dedicated until invalid contract. These employees still maintain an employment relationship with the agency providing human resources, that’s why the enterprise will pay salary and other benefits for employees coming with the service fee to the agency providing the human resources.
- Outsourcing human resources:
Manpower supply companies are also a form of Outsourcing, which provides adequate human resources in any operating industry according to the firm commitment to the performance productivity and quality of employees as in the contract. Employees receive salary and benefits from the company providing the manpower. They also maintain a relationship with the human resource company and the enterprise will have to pay the service fee to the manpower supplier.
- Legalization of labor:
Many foreign enterprises operating in Vietnam but not yet familiar with labor law and human resource management tend to utilize this form of human resources outsourcing. With this form, enterprises directly recruit and screen future staff according to actual requirements but do not sign labor contracts. The recruitment company will be in charge of managing, signing contracts and paying salaries, all welfare and insurance policies for the workforce of the enterprise being used.
With this form of HR Outsourcing, businesses will own large human resources without worrying about labor laws and procedures while guaranteeing to manage human resources flexibly, professionally and reduce fixed costs for employees. At the same time, there is a commitment to security and strict efficiency from the service provider company.
Above are 4 forms of Human Resource Outsourcing that are being applied commonly today. For detailed advice on each form of Outsourcing, please contact Faro Vietnam's hotline immediately!
