What is Human Resources Provision
Many enterprises outsource not just seasonal recruitment, but the entire process of managing the human resource function. In reality, and from the legal point of view too, this is almost an extension of the practice of temporary staffing.
It is commonly believed that outsourcing HR work entails getting another organisation, usually a specialist, to handle payroll functions. But the fact is that the actual scope of such a process is far greater.
For, Human Resource Provisioning is more complex than that. It offers additional benefits, especially in terms of optimising the use of available manpower across organisations based in different countries.
Here too there is a tripartite arrangement with manpower, including highly skilled and semi-skilled, employed by one agency being utilised to fulfil the labour needs of another. The Client contracts the agency to manage its entire human resources functions.
The agency is the employer on record and responsible for handling all HR issues – including payroll and legal, while the client manages the execution of tasks to be executed while they are deployed at the client firm.
The firm pays the agency for its services and the agency pays their employees for work done at the client’s company’s site.
- AE – Agency Employee
- EA – Employment Agency
- CC – Client Company
Positive Benefits of Human Resources Provisioning
- Get the best talent for your needs from any part of the world without extensive formalities and paperwork
- Utilise skills of those who wish to receive all benefits in their home country only
- Assess a potential employee’s ability and offer more permanent employment only to those who are highly capable
- Big savings on direct costs, as well as indirect costs related to admin and procedural systems
- Enables use of talent even when contract staffing is not feasible for whatever reason
Human Resources Provisioning is preferred when manpower needs are long-term or semi-permanent, while Temporary Staffing is suited to meet specific, short-term requirements.
Apart from this, the two services are fairly similar in their structure and function.
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