It is top management task to provide HR department with clear goals and define future priorities.
There are four key dimensions for successful HR activity- business strategy, human capital strategy, HR function strategy and HR operating model.
HR function strategy relates to what efficiency and effectiveness goals should be achieved during defined period of time for delivering business performance.
And the last dimension is finally HR operating model that has three sub-dimensions: sourcing (about what activities should we do with our company’s staff and which of them we can delegate on others), infrastructure (what do we need to fulfill HR strategy: technologies, process, talent, organization), governance (about managing related investments).
Finding right partners for doing business appears often even more important than doing business itself.
HR programs can be competitively priced, effective and efficient, but usually it is not enough for management, as it wants to see direct confirmation and return on investments, including expenses for recruitment, development, motivation and compensation, through things that can be measured- higher productivity, lower turnover and positive bottom-line results.So, sourcing strategy or in other words “make versus buy” provides HR department with an opportunity to create a perfect ratio of inside talented HR resources and attracted HR force from outside for overall better performance of the organization and can add value to business outcome at lower level of expenses (Gilly, 2002). Sourcing Companies usually before starting implementing sourcing strategy by their HR departments ask themselves several questions about increasing their revenue without increasing number of employees, and can they create the environment for productivity and effectiveness improvements and whether they will be able reach efficiencies using more self-servicing technologies.All these questions can be cleared up with the implementation of effective and well-planned sourcing strategy.There are all interconnected, and if all adequately followed at the end they all bring maximum contribution to company’s business performance. First comes business strategy, in other words company’s overall goal and aim of company’s existence.Then comes human capital strategy that touches such aspects, as securing, managing and motivating workforce for better performance.And only after performing of all necessary tasks, HR leaders can choose optimal sourcing solution for the benefit of the enterprise’s performance, rising quality of its products and services and lowering expense for implementation and service delivery.In such case, sourcing strategy will bring the following results: 1.There are several HR functions that can be outsourced, including payroll, time and labor management and administration of benefits.Use of automated programs that support payroll module can automate the pay process for gathering data on time and attendance of the employees, calculate correspondent taxes an deductions as well as bonuses, generate tax reports of the employees.Finding the best partner to outsource some activities can result of HR service delivery cost reduction for about 30%.Outsourcing companies usually have well-structured and developed efficient web-based systems, which can cope with HR tasks effectively with at minimum level of expenses.