BPO in the Human Resources Technology (HR Tech) Industry: Talent Acquisition and Management

Managing a team of 50 employees is already an administrative challenge. What more if you have a larger workforce than that? 

Thus, emerging tools exist to streamline workforce management processes. Companies in the human resources technology (HR tech) industry provide these innovative platforms so that you can focus on your enterprise’s core competency.

However, what if HR tech vendors themselves encounter talent acquisition and management issues?

Business process outsourcing (BPO) providers offer cost-effective solutions to boost HR processes. BPO providers help human resources technology companies cut expenses and ensure smooth operations through the methods discussed here.

Challenges in HR tech talent acquisition and management

HR tech is crucial in improving employment functions, from hiring to retirement. HR software vendors optimize artificial intelligence (AI), robotic process automation (RPA), and cloud computing to efficiently handle your workforce needs and automate recruitment processes. 

Because of such benefits, IMARC Group reported that the global HR tech market achieved $33.3 billion in revenue in 2023. The need to replace outdated HR systems, address the increasing working population, and simplify complex management methods will drive the industry’s development, reaching a compound annual growth rate (CAGR) of 5.2% by 2032.

While HR tech firms bring the tools necessary to enhance their clients’ workforce administration, they also experience unique challenges within their human resources departments. Here are the critical hurdles they encounter with their in-house HR team:

• Finding the right talent. HR tech positions require individuals with combined HR expertise and technical skills. They should have HR tech proficiency, social intelligence, and new media literacy.
• Attracting tech-savvy candidates. HR tech businesses compete with established information technology (IT) giants for the same talent. They must create a strong employer brand and offer competitive compensation to acquire top talent. 
• Reaching the target audience. Using traditional recruitment channels might be insufficient. HR tech companies should broaden their strategies and cover tech-focused job boards, developer communities, and industry conferences.
• Keeping pace with skill evolution. Investing in ongoing training and development programs ensures HR tech workers stay up-to-date with the latest trends. However, small and midsized businesses in this field might find it expensive and time-consuming.
• Retaining workers in a competitive market. Competitors’ lucrative compensation packages may result in high employee turnover for HR tech companies. Tenured professionals often choose the opportunity that benefits them well.

The role of BPO in the human resources technology sector

After knowing the issues above, what is BPO’s contribution to this industry? This approach ensures uninterrupted HR functions in the human resources technology industry by streamlining talent acquisition and management. 

By charging hourly or monthly fees, service providers help reduce costs, fill skill gaps, and perform quality HR services. This cost-efficient solution enables clients to refocus their funds to attract talent for roles requiring core competencies. The next section discusses the third-party team’s role further.

Enhance job ad development and dissemination

BPO companies employ skilled professionals who can handle job postings quickly and effectively. These specialists are proficient and regularly trained to conduct the following tasks for job ad development and dissemination:

• Perform labor market research. Research helps BPO workers understand trends, competitive landscapes, and candidate expectations in the HR tech sector. They then use the collected insights to create compelling job ads matching current demands.
• Create a comprehensive list of HR tech-focused qualifications. The BPO team collaborates with clients to identify the unique technical skills needed for an HR tech role. These may include proficiency in applicant tracking systems (ATS) or talent management suites.
• Apply search engine optimization (SEO) techniques. This approach assists third-party teams in improving the visibility of online job ads. It ensures job postings reach a wider audience, allowing potential candidates to quickly discover them.
• Produce compelling digital job posters. BPO providers work closely with HR tech businesses to create detailed and persuasive recruitment ads. They help highlight critical responsibilities, qualifications, and unique brand selling points to attract top talent.
• Leverage social media platforms to distribute job ads effectively. Providers create and facilitate social media campaigns to target specific demographics online. They reach potential candidates across social networks such as LinkedIn and Facebook.
• Manage job board posting and emailing. BPO companies personalize job ads by sharing them on industry-specific hiring platforms such as TechSpring and executing targeted email campaigns. This effort caters to active HR tech job seekers.
• Optimize data analytics for job ad monitoring. This process involves tracking metrics such as click-through rates and application rates. The results help BPO teams refine job ad strategies and align them with the client’s updated goals and requirements.
• Enable job ad localization. BPO companies perform translation and interpretation services based on cultural nuances and language preferences for global recruitment efforts. Localization attracts candidates from diverse linguistic and ethnic backgrounds.

Streamline recruitment and onboarding

The lack of an effective recruitment and onboarding system impedes worker retention in the long run. According to a recent study, employee turnover reaches approximately 50% during the first 18 months of employment. 

This issue increases the cost per hire and vacancy and results in the loss of brand know-how. BPO companies assist human resources technology providers in mitigating or preventing such challenges by taking over these tedious tasks:

• Identify and source candidates through various channels.
• Conduct initial resume screenings to short-list candidates based on predefined criteria.
• Organize interview scheduling and communication between candidates and recruiters.
• Securely maintain and update ATS databases to ensure accurate candidate information.
• Leverage data analytics to generate reports on recruitment metrics.  
• Perform employee background checks, including employment history verification.
• Facilitate tailored onboarding and hands-on new hire training.

Improve payroll and workforce engagement

Enhancing payroll processes and workforce engagement programs is another crucial role of BPO in the human resources technology sector. Service providers collaborate with HR tech clients to customize payroll solutions that accommodate specific organizational needs. 

Payroll support involves providing skilled finance specialists and robust financial tools to boost calculations of salaries, tax deductions, and other relevant components. BPO companies also use these scalable resources to manage employee benefits such as health insurance, retirement, and social security plans. Other services they offer include:

• Implementing and maintaining employee self-service portals
• Using workforce analytics to assess employee engagement levels
• Facilitating feedback mechanisms for workplace surveys
• Preparing data-driven recommendations and reports for workplace improvements

Besides, BPO firms are important in bridging the HR tech skills gap. They customize training programs that highlight both HR and IT capabilities. They also use a blended learning approach to accommodate varying employee preferences. It includes the following methods:

• Instructor-led online or offline training
• E-learning modules
• Case studies and scenario-based learning
• Augmented reality and virtual reality-based training
• Regular one-on-one coaching

Strengthen regulatory compliance

Recent statistics show that 50% of candidates will not apply to a business with a bad reputation. Negative reviews and ratings on official job sites and the lack of legal certifications discourage potential applicants from submitting resumes. 

HR tech companies mitigate or avoid those issues by entrusting their legal compliance efforts to HR BPO vendors. These third-party businesses provide advisory services to help their in-house HR department understand regulatory frameworks and meet compliance requirements.

Moreover, BPO companies let clients focus on their human resources technology offerings by streamlining these compliance tasks:

• Maintain accurate and updated employee records. This includes documenting candidate data, employment contracts, and other paperwork required for compliance.
• Organize and make important employment files readily available for audits. This proactive approach helps HR tech companies show compliance during legal inspections.
• Manage candidate consent processes. The effort ensures candidates and employees personally allow data access for background checks and other law-compliant screening procedures.
• Promote non-discriminatory talent acquisition and management. This involves drafting and implementing diversity and inclusion initiatives. These measures ensure equal opportunity for all candidates, regardless of race, gender, age, or other protected characteristics.
• Perform continuous HR compliance monitoring and reporting. This action helps BPO teams identify areas for improvement and resolve potential issues. They also use the insights gathered to produce timely and accurate regulatory reports.

The bottom line

HR technologies have revolutionized the way companies acquire and manage talent. These advanced tools automate repetitive and time-consuming human resource business processes, allowing for core competency prioritization. However, providers of these platforms also experience challenges within their HR units.

BPO is instrumental in helping human resources technology providers mitigate or prevent such workforce management gaps. Third-party contractors deliver the discussed services to ensure HR tech vendors meet talent acquisition and management needs at competitive pricing. 

Do you aim to achieve cost savings while recruiting or retaining top talent? Let’s connect and tackle a potential service-level agreement (SLA). Unity Communications houses scalable resources to handle your non-core tasks, letting you prioritize advancing your HR tech products.