Misra shares why outsourcing certain HR functions can lead to companies driving better efficiencies.
Vivek Misra co-founded Mynd Solutions, the HR, finance and accounting outsourcing company, in 2002. He calls his company a 15-year-young start-up, and it is one of the few companies that provide both HR and finance outsourcing services under a single roof. Using tools such as ACT (Active Compliance Tracking)—which tracks the status of compliances, holds documentary evidences and enables HR teams to generate pan-India documents related to specific compliances—Mynd centralises critical HR processes of large and small companies. In an interview with FE’s Vikram Chaudhary, Misra shares why outsourcing certain HR functions can lead to companies driving better efficiencies. Excerpts:
Why are companies increasingly going for HR outsourcing?
The size of HR teams tends to grow as the company expands. Most of the growth is seen in administrative, repetitive tasks, since there is an increase in volumes. This has a direct impact on direct costs. Also, the “strategic thinking” part of HR team does not grow at the same pace. With outsourcing, companies can retain only the core HR functions and convert the rest of fixed costs into variable costs. With outsourcing, companies can drive better efficiencies.
Does outsourcing certain functions give HR departments an advantage?
There are two sides of HR—strategic and administrative. Outsourcing allows HR departments to focus on the strategic function. It helps them drive better engagement, reduce attrition and define clear career paths for employees. The focus on these strategies has a direct impact on the growth of a company.
Which are the evolving trends in HR?
The transition to cloud-based HR tools has been increasing in all aspects of HR. In addition, there is a growing number of wellness-based apps, and companies have begun to incorporate these to ensure physical well-being of employees. Lastly, there is a surge of both people analytics and predictive analytics in almost all aspects of decision making in HR.