What is an 3rd party hr services department? Why have third party hr consultant department services been used by so many large and small businesses in recent years? Let's learn about a relatively new form of labor hiring in Vietnam today with this article.
1. What is an 3rd party hr services?
Outsourcing human resources department (third party hr services) is the practice of a business hiring personnel outside the company to perform certain job tasks, such as: calculating employee salaries, calculating corporate taxes, etc. The Outsourced Human Resources Department is a service facilitated through a contract mutually agreed upon by the employer and the service-providing company. This arrangement entails the following key aspects:
1.1 Transfer of Responsibilities
The employer, whether an individual or an organization, delegates part or the entirety of the management and responsibilities associated with one or multiple human resource functions to the service company.
1.2 Costs and Participation Rights:
The individual or organization availing the outsourcing service incurs costs, paying the service company for its expertise. The client retains the right to participate in control, advice, and adjustments throughout the service company's execution of the assigned tasks.
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2. Key professional responsibilities
In the realm of professional responsibilities, the role encompasses various crucial tasks related to human resources and financial management within the enterprise. Key responsibilities include the development of a comprehensive salary scale in adherence to state regulations, drafting legally compliant labor contracts tailored to the enterprise's needs, and overseeing the establishment and verification of the company's payroll.
2.1 Develop salary scale
The professional third party hr consultant is entrusted with formulating and reviewing payroll-related documents, creating salary regulations, and meticulously calculating payments and individual components within the payroll structure. Further responsibilities extend to the actual disbursement of salaries as per customer specifications, necessitating the facilitation of funds from the client's business to fulfill salary obligations.
2.2 Answer questions for employees
To provide clarity on the company's salary policies, the 3rd party hr serves as a point of contact for employee inquiries, managing a call center dedicated to addressing concerns and queries from the workforce. Additionally, the role involves executing procedures related to personal income tax, such as family deduction registration, tax code registration, monthly tax declaration, and finalization of personal income tax.
2.3 Carry out social insurance
On the administrative front, the 3rd party hr services oversees the completion of social insurance, health insurance, and unemployment insurance procedures. This includes reporting changes in social insurance, policy resolution, guiding employees through social insurance processes, addressing social insurance procedures, and managing book closing and other related tasks.
2.4 Undertake personal income tax procedures
A focus on meticulous record-keeping is evident as the professional prepares periodic reports on salary and offers valuable advice to businesses regarding the various forms of labor contracts applicable to different employment scenarios. Furthermore, the role extends to advising businesses on optimizing eligible personal income tax costs within permissible limits.
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2.5 Insurance Collaboration
An integral part of the role involves taking responsibility for explanations and collaborations with insurance entities, particularly in the context of the Personal Income Tax segment. Overall, this multifaceted profession plays a pivotal role in ensuring effective human resource management and financial compliance within the enterprise.
3. When to Consider Hiring an Outsourced Human Resources Department
This comprehensive set of responsibilities showcases the intricate role that a 3rd party hr services in this field plays in managing human resources effectively, contributing significantly to the success and compliance of an enterprise in the contemporary business landscape.
3.1 Immediate Workforce Needs
When there is a pressing need to replace a company employee who has left abruptly, such as employees taking unplanned maternity leave or those sent for remote study.
3.2 Limited Workload Suitability
In cases where the business's workload does not justify hiring full-time employees due to limited capital resources.
3.3 Expertise Gaps in New Fields
When enterprises plan to venture into new fields that require specialized expertise not present among existing company employees, necessitating the outsourcing of personnel for project deployment.
3.4 Project Efficiency Focus
For businesses looking to channel resources toward the prompt and effective completion of projects, opting for outsourcing additional personnel is a strategic choice.
3.5 Cost-Effective Solutions
For businesses aiming to minimize recruitment costs, reduce investments in equipment and premises, and mitigate employee management expenses, outsourcing human resources emerges as an efficient and cost-effective solution.
Third party hr services is a policy chosen by many businesses. By hiring an experienced outside unit to undertake part or all of a specific job or project, businesses can streamline personnel, save costs, and minimize risks.
CONTACT FARO VIETNAM today for 3rd party hr.
HANOI HEAD OFFICE
Tel: + 84 24 3974 3091
HO CHI MINH CITY OFFICE
Tel: + 84 28 3821 4654
Grow your business with our trusted Human Resource Solutions.