An analysis on how HR department can contribute to business productivity by considering resource to make decision on what to keep in-house and what to outsource. ----- Visit talentnet.vn to receive frequent updates on VN Labor Law or discover our prestigious HR services for Employer and Employee. Talentnet Corporation | Executive Search | HR Advisory | Mercer Survey & HR Consulting | Payroll & HR Outsourcing

1. WHAT TO OUTSOURCE?
2013 and its many economic fluctuations have led to changes in strategy and operations at many Vietnamese
businesses. Most are coping with similar difficulties: cutting costs while retaining their competitive advantage and
maintaining a good working environment for their employees. Such challenges, however, have made businesses
more flexible and willing to take the initiative in making appropriate adjustments to deal with the economic volatility.
They are paying greater attention to efficiency and productivity in order to meet their objectives.
So can the Human Resources (HR) Department also contribute to business productivity? What does the HR
Department need to focus on to support the organization’s strategy while still guaranteeing daily operations proceed
within a limited HR budget? How can HR functions be made more productive? Below is a simple analysis on the
main functions of HR, to understand its activities and find the best solution to increasing productivity in the HR
Department.
HR CONSULTING
CORNER
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No.
Main HR
function
Administrative tasks considered for
outsourcing
Core value to be kept in-house
1 Recruitment
• Job posting, searching, screening
• Shortlisting
• Background checking
• Preparing Offer letter
• Manpower planning
• Understanding business requirement in order
to prepare proper Job Description and select
the right persons for the organization
• Understanding market, seeking different
sources, different vendors for different
positions
• Being the ambassador, selling the competitive
advantages and culture of the Organization to
potential candidates
2 Compensation
and Benefits
• Payroll and benefit administration
• HR Legislation updates
• Job evaluation and classification
• Market salary and benefit survey
• Keeping strong communication channel with
employees on legal issues, payroll and
Company policy with understanding and
supporting values.
• Understanding the Company positioning in the
market and applying the Company
compensation strategy in most efficiency way.
• Designing valuable remuneration package/
scheme within the budget for different groups
of employees
• Attracting and retaining talents

2. HR CONSULTING
CORNER
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& HR Outsourcing Services. Our purpose is to support readers & enterprises to understand more about HR trend
in Vietnam and update the new labour changes for prompt application.
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No.
Main HR
function
Administrative tasks considered for
outsourcing
Core value to be kept in-house
3 Training and
Development
• Logistic for Training courses
• Assessment services
• Conducting training
• Setting up channel for training and
development (e-learning)
• Tailor-made training materials based on
business needs
• Promoting learning environment and
assessing impact of training to Organization
• Career development and talent management
• Succession planning
4 Employee
Relation
• Legal advisory
• Materials for communication with
employee
• Company events and activities
support
• Employee consultancy center
• Employee effectiveness measurement
• Employee engagement
• Promoting a two-ways of communication and
transparent channel in the Company.
Through the above analysis it is clear that the time needed for HR administration and routine tasks is significant. To
meet the organization’s strategy and retain its competitive advantage, people are the most valuable asset and
differentiate the organization from others. In order to keep your people, especially your talent, happy, motivated and
engaged, the HR Department plays a very important role, especially in the core values. Outsourcing administrative
tasks to a trusted vendor, to give more time and resources to core functions, can help the HR Department become
more productive and more valuable to employees and the organization.
This analysis is only a suggestion for readers’ reference. The decision on what areas in HR should be outsourced
and the line of responsibility when outsourcing should be analyzed and planned carefully to make sure the
connection with your employees remains strong and that the HR Department is a trusted partner within business
lines. In conclusion, we would like to share with readers a survey result from PricewaterhouseCoopers: “More than
75 per cent of companies turn to outsourcing to meet at least one of their strategic HR requirement”
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