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Home » Articles » What is offshore HR and what are its benefits?

What is offshore HR and what are its benefits?

Normally, companies come with their own human resource (HR) department operating in the same location as it is an integral part of any running organization or business.

However, there are higher costs that come with managing an internal human resource compared to offshoring. 

That being said, offshoring HR can be a great way to cut down on costs while still maintaining the ins and outs of HR, albeit from a different location.

What is offshore HR?

Offshore HR is when you delegate your company’s human resource functions to a third party located in a different country. You can work with a reputable offshore HR provider, like ConnectOS, to set up your own remote HR team.

Your offshored HR staff will handle similar tasks done by regular HR employees, such as recruitment and hiring from a wider talent pool.

What is offshore HR
What is offshore HR?

Benefits of offshore HR

There are many reasons a business may choose to offshore its HR department, as it has many benefits.

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Reduced costs

The main advantage of offshoring HR is cutting down on costs.

Some popular destinations to offshore HR to are Vietnam, Malaysia, and the Philippines where labor is cheaper and work schedules are more flexible. Additionally, you gain access to an affordable talent pool.

Increases efficiency

Offshoring HR also streamlines HR processes and increases efficiency as they are done by specialized talent who already understand the process.

This gives the company more time to focus on other things, leaving HR to do their work.

Round-the-clock services

Another advantage of offshore HR is working in different time zones. While this may seem like a hassle at first, it enables 24/7 HR services, ensuring their problems are solved quickly.

Having concerns addressed immediately increases employee satisfaction as well, which leads to higher morale overall.

Responsibilities of an offshore HR department

The responsibilities of an offshore HR department are similar to a regular HR department. Here is a breakdown of its duties:

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Recruitment and onboarding

Offshoring HR allows you to recruit from a diverse talent pool and find employees who specialize in the position you are hiring for.

An additional benefit to that is the entire process, from creating a job posting to hiring, can be done at a lower cost.

Reliable offshoring companies like ConnectOS will be responsible for onboarding new employees by handing out training materials and orienting them on the company culture.

Payroll management

Offshore HR personnel are responsible for handling employees’ payroll, tax management, and keeping track of attendance.

Offshored personnel comply with local laws and regulations, efficiently accomplish their daily tasks, and protect the employees’ personal information.

Administering benefits

Offshore teams are also responsible for managing employee benefits, such as allowance and medical insurance, saving time, and cutting costs.

Benefits packages also come at lower prices if these offshore teams buy them in bulk from multiple clients, giving you the best deals.

Administering benefits
Responsibilities of an offshore HR department

Things to consider as you offshore HR

There are a few considerations to remember when offshoring HR. 

One major thing is compliance with the laws to maintain quality of service. Ensure that your offshore HR provider remembers and complies with both countries’ laws and regulations to prevent legal disputes that may affect business operations.

Furthermore, maintaining proper communication with your remote HR team is key if you are going to offshore HR. You can use open communication channels and productivity-measuring tools as they perform their daily tasks to stay efficient and organized.

Partner with ConnectOS to offshore HR

Offshoring HR is a convenient way to save money despite your team being based somewhere else as long as lines of communication are kept open, and the team stays connected.

ConnecetOS is a trustworthy option if you are looking to offshore any kind of service. Its world-class offshoring solutions can help you cut down on costs while maintaining efficiency and productivity.

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