Centricity, a 75% owned Grintek Group company, has announced its new human resources (HR) outsourcing service.
"The service will provide companies with a cost-effective model to handle non-core HR processes, allowing them to focus on their core business," says Garth Hayward, managing director at Centricity.
"According to global trends, 50% of CEO's business challenges are directly related to HR. Locally, due to complexities of labour laws, this figure is higher and 65% of management's challenges in SA relate to HR issues," he says.
Hayward explains that for most companies, HR is a critical but non-core activity and the trend to outsource is driven by the benefits of handing the responsibility over to an HR information process specialist who is measured against a specific and predefined cost-effective service level.
He says: "Other motivating factors include obtaining the best strategic advice from a partner whose core business is HR as well as a self-service application for employees that ensures easy and immediate access to their information resulting in happier employees, one of the most important conditions required for increasing productivity."
By outsourcing a company's HR back-office processes, a reduction in overall HR administration costs is seen through employee self-service (ESS). Centricity provides employees with the ability to access HR information through a Web browser within an intranet or portal environment. Accurate leave administration also saves costs as inaccuracies directly translate to a loss of productivity and revenue.
"Businesses face the challenge of finding an effective, controlled means of managing HR costs and outsourcing this non-core activity has become a viable alternative to handling non-core HR functions in-house," says Hayward.
Centricity provides all the modules or components that support the required processes for effective, efficient HR management including the design, implementation, infrastructure, staffing and management of a holistic solution while ensuring legal compliance.
A payroll service is part of the Centricity offering.
"It is essential for businesses to align their HR functions to support their organisation's strategic intent, Centricity undertakes this task as part of its service, ensuring that the roles, responsibilities and performance required by the service are defined up front, resulting in a clearly defined business-driven service," says Hayward.
"In addition, investing in the required infrastructure can be a costly exercise and outsourcing the HR function to Centricity is one way of resolving this issue. Centricity has already made this investment and the costs are distributed across several clients, making outsourcing a viable proposition for both the outsourcer and customer."
As service is an equally important component of the outsourced functions, Centricity offers access to its customer care centre where managers and staff are able to obtain information when necessary, without undue delays.
Centricity also offers individual counselling with specialists if required.
A key differentiator of Centricity's outsourced service includes the use of its CENSYS approach, which among other benefits defines the required service level - per service required, covering all outsourced responsibilities within the HR process.
Hayward continues: "Centricity's HR outsourcing service does not replace the requirement for a skilled approach to leading and managing people but rather supplies the complete, relevant, accurate, timeous and accessible (CRATA) information required by management to support their HR decisions. Our advantage lies in the fact that we consolidate the HR value proposition of an organisation by clearly defining and mapping the processes and interdependent processes that are required to deliver the objectives as stated in employee, shareowner and customer value streams, delivering an up to date HR strategy that supports business objectives."
Corporate governance also needs to be adhered to and Centricity is committed to corporate governance practices that are responsive and in the interests of the shareholders, employees and clients.
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