HR Managed Services – What and Why

Over 69% of the employees are likely to stick with a company for more than three years because of a smooth onboarding process. This stat shows how vital the small things are in maintaining a healthy relationship with the employees – right from the first day

HR Managed Services – What and Why

HR Managed Services – What and Why


Over 69% of the employees are likely to stick with a company for more than three years because of a smooth onboarding process. This stat shows how vital the small things are in maintaining a healthy relationship with the employees – right from the first day. And it also exhibits how important human resource management is for an organization’s progression. That brings us to the in-vogue notion of HR Managed Services.


HR Managed Services (HRMS) does more than just distribute and efficiently manage the organization’s duties related to human resources. Effective HRMS can help an organization excel across varied levels of hierarchy and operational zones. So, how does outsourcing HR services work, and how does it impact the overall health of an organization?


Let’s take a look.


HRMS: Outlook and Trends

HRMS or Human Resource Managed Services work on the principle of outsourcing the HR services to a third-party service provider. These services are provided via software or application that allows easy walkthrough of HR-related activities. 


As per the Black Book of Outsourcing, Human Resource Outsourcing can be divided into three levels which are strategic, tactical, and transformational. Every level has a different set of problems and activities to deal with. Tactical level is for problems that need an immediate solution, the strategic level deals with long-term ideologies, and transformational depicts restructuring. For all these levels, different processes and services can be offered when it comes to outsourcing HR services. 


Organizations thrive with their workforce, so recruiting, onboarding, and handling the employees becomes crucial and mandatory. Companies have realized these needs, which has increased the demand for more methodical HR services.


So, What All Is Included in the HRMS Model?

HRMS model comprises a variety of functions, including but not limited to employee lifecycle, payroll management, and recruitment management, among others. 


One of the significant and most resonating parts of HRMS is analytics. All the employees information is stored and tracked via the software, and the data is available at the tips whenever needed. This, in turn, helps top-level management make quick decisions, whenever and wherever.


On top of this, the HRMS model can be used for rewards and recognition, tracking every employee’s performance, absence, and overtime for better evaluation. This paves the way for a more promising and skillful mode of handling the workforce.


HRMS also helps to upskill by providing a segregated online or live training platform. These models are equipped with a variety of sources which in turn can help build the curiosity quotient amongst employees. As such, the employees are eager to learn and implement new techniques for better results at the workplace.


All these facilities indicate that the future of HRMS is bright. It helps reduce human errors, increase employee retention, and conceptualize a proper process for tracking performance. This further reduces the chances of any error or bias, which usually disturbs the synergy of the workplace. That said, let’s get into the granularity of the benefits offered by HRMS.


Benefits of HR Managed Services

  • Technology-Driven Services

Innovation is the key to success, and today’s leaders understand that. Technology-driven services lessen the probability of any human error or bias cropping up, providing more clarity at various hierarchical levels. This can help build inclusivity and contribute to a better corporate culture.


According to a study by McKinsey, 45% of workplace activities can take help from automation for seamless procedures. The same study also highlights that about 80% of the leaders believe in digital automation so that the workforce can focus on other essential aspects of the business.

  • Centralized Information

HRMS powers up the organization by allowing easy access to relevant data reports. These models are safe and secure yet at the same time helpful in making quick decisions. With all information being in one place, everyone has a transparent picture for easy workforce management and strategic implementation of ideas.

  • Cost-Effective

With everything such as onboarding, training, appraisals, etc., being taken care of, a company can focus on the core business rather than spending time on a plethora of other daily tasks. Therefore, HRMS are cost-effective and help move towards greater profits.

  • Ease of Work

HRMS functions comply with labor laws and other business aspects, including employees’ welfare. This helps in being untroubled when it comes to managing the affairs of the employees in the right fashion, making the company always audit-ready.


In a Nutshell

Every company has a distinct requirement when it comes to HR Managed services. This requires a special and technical approach to handling the workforce, which will ultimately lead to better business results. By outsourcing the HR management functions, the company can focus on its core business and help identify new growth avenues.


At Pierian, we help organizations manage their workforce, strategy, and relationships effectively. Get in touch with us to know more about our services and how you can make the most out of the HRMS model.



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