Human Resource Services Important When Executing Business Strategies

Johanna Absalom

29 April 2011

Human resource services is an important element in executing business strategy, says Sidney Hanstein, business manager of Outsourcing Solutions, a local HR and payroll services provider.

According to Hanstein, not all executives see HR as an integral part in executing their business strategy, which makes HR a paper based department dealing with files and other administration.

“Most businesses, non-governmental organisations and non-profit organisations do not have HR divisions, therefore our role as a business, is helping organisations understand the importance of HR in implementing business strategy and retaining key skills” he said.

Outsourcing Solutions is a Namibian-based HR and payroll services company, which offers services related to human resource administration. “As part of our HR service offering to our fixed clients we provide employment contracts, HR administration, filing, employee record keeping, benefits and other related administration work,” Hanstein said.

He urged businesses to understand the value, impact and importance of the integration of HR in business, and employee development that has the potential to elevate company performance. “Employees start shining and performing if performance management structures are properly put in place and they get acknowledgement for performing. Thus, employers need to understand that it has a direct impact on business growth and profits,” added Hanstein.

Asked about the cost of their services, he said: “We charge a fixed monthly rate for HR, payroll and HR software. This rate works on a sliding scale. The more the company staff numbers the lower the rate per employee. In addition, special packages are also offered to businesses in the various sectors. We offer the same services to all our clients taking into consideration their industry specific requirements, for example Affirmative Action compliance if needed,” he said.

The provision of HR services to the business sector is also enhanced by the implementation of information communication technology and other technological innovations. “Information technology has played a major role in how HR and even payroll developed over the past few years. At present we make use of SmartHR, which is an HR software package that gives our clients the technological edge, which they need above their competitors,” Hanstein said.

According to Hanstein, one of the biggest challenges they are faced with, is managing the perception of senior staff, that HR is not just an admin function but a required resource to execute business strategy.

The company is registered as Practical Outsourcing Solutions and opened for business in April 2002.

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