The background for outsourcing may be different, but the conclusion for a business that outsources is that it is to the business' advantage; it is done to create a competitive advantage. Joining partners, who add value to the company's value chain, is increasingly important strategically. In other words, a company's value chain does not have to be exclusively within the company's walls.
Outsourcing as a concept has a long tradition in Norwegian companies, and it is traditionally most widespread in IT and accounting. In recent years, it has also become more common in HR. Services such as recruitment and staffing have become common areas to outsource for many companies; they choose to buy the service remotely because they view it as the most profitable overall.
Expensive personnel department
Most companies in Norway are small and medium-sized companies and many do not have their own personnel departments. The general manager of these companies has many areas of responsibility and a wide range of work tasks, which can embrace everything from sales and marketing to financial management and strategy. Capacity for HR work can thus be limited and it can be difficult to set aside time for necessary tasks. This can be anything from recruitment processes to conducting employee interviews with own employees. Nevertheless, most people agree that it is valuable and useful to invest time in both current and future employees.
What is the benefit of outsourcing HR services?
One of the reasons for outsourcing is the increased degree of flexibility. The opportunity to upgrade and downgrade as needed is greater when purchasing externally. The ability to be flexible and to adjust the workforce to the company's needs is an important area for being competitive and is the reason why many people use the service area staffing. Staffing solutions mean solutions where the company gains access to the necessary manpower quickly. The employer's responsibility lies with the supplier, so that it reduces administration for the company.
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By purchasing these services from an external partner, the general manager of the company can gain access to specialized cutting-edge expertise and their own focus can be maintained on the company's own core business.
A new area for outsourcing in HR is outsourcing of HR management. An ever-increasing proportion of Norwegian companies are knowledge-based. In such companies, employees are the most important resource. The employees' competence and skills, so-called human capital, are a more important part of a company's competitive advantage than it was before. Why? Human capital is difficult to copy! It helps to make a business unique, together with the business model and other strategic measures. In other words, taking care of your employees is more important than ever.
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