Strategic Human Resource Management

It can be said that the National PEO is not exactly a human resource outsourcing firm. It can be better designated as a hybrid firm because it offers HR consulting services coupled with outsourcing services. The age has experienced changes in strategies for corporate growth. With the increase of competition and the marketing of similar products by all the competitors, the companies are now focusing on cost reduction techniques to increase their margin of profit.

The present day use of human resource management has also taken a new dimension. The strategic human resource management has been merged with the other functions of an organization and is playing a role in the cost reduction strategy. Human Resource Outsourcing is one such technique by which the HR department of an organization focuses on reducing costs of recruiting and maintaining its human resources.



The Human Resource outsourcing includes a whole gamut of activities like recruiting, providing Payroll Services to the client organizations, managing the entire compensation procedure of the employees of their clients, and even taking enough care to see that their client companies are complying with the rules and regulations set by the State in the are of health insurance of the workers. Even the outsourcing company would conduct necessary verifications on the work eligibility of the workers by their procedure called E verify.

These are clerical duties and the Human Resource department of an organization needs to concentrate on more important activities concerning the long term profit of the organization.