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Here's How HR Outsourcing Services Shaping Businesses in the UAE
Published Date: 02 Aug 2022

As the governments of different countries, including the UAE, are actively looking for ways to develop sectors like industrial, commercial, & residential, the corporate industry is nowhere behind and is witnessing swift growth in the country. With the presence of favorable government policies by the governments, the UAE is observing massive foreign investment & establishment of corporate companies & businesses, alongside the government support to contribute to economic diversification in the UAE. With such a high pace establishment of multinational companies and start-ups, the country is presenting the availability of job opportunities for the people. 

However, running a business is not something easy and a cup of tea but actually needs several aspects to look after. From managing the seating, workstations, and resources to employee hiring, management, accounting, salary payout, and others. Hence, such aspects trigger the need for a robust HR outsourcing service provider to cater to such needs & unburden the existing team, allowing them to focus on their core roles in an organization. Therefore, with the growing number of corporate establishments in the UAE, the need for HR outsourcing services is escalating too. In fact, a recent research report reveals that the UAE HR Outsourcing Services Market is set to register a CAGR of around 8.96% during 2022-27. 

Key Factors Driving the Popularity of HR Outsourcing Services

Several factors are backing the high demand for HR outsourcing services across the UAE, yet the principal ones exhibit the growing awareness among organizations about the benefits of these services. 

If you are wondering what these perks are, listed below are the top reasons backing the substantial demand for HR Outsourcing Services in the UAE among organizations of all sizes. Stick with the blog until the end to learn more.

  • Time Efficiency & Productivity

For any organization, time management & utmost productivity are the two prominent aspects that drive profits. With the help of HR outsourcing services, the burden is unloaded from the existing team, enabling them to focus on other activities, while the external service provider takes care of catering to the human resource needs. After all, as these services eliminate lengthy time taken by HR processes, including recruitment, employee compensation, and other administrative work, the procurement of these services is increasing swiftly. 

  • Cost-Effectiveness

With the availability of an HR outsourced service, the company can manage to reduce the extra HR expenses. Many start-ups might find their dependency on one HR employee unfair & risky to manage all the administrative work, recruitment, employee benefits, & payroll. It, in turn, exemplifies the need for a professional team to carry out different functions and promotes the high demand for these outsourcing services in the UAE. 

  • Additional Perks

The most attractive perk of HR outsourcing services also includes easy availability & access to professionals exhibiting high skills & knowledge about the different employee benefit schemes, market trends, insurance options, and administrative management, among other essentials, offering greater efficiency to the organizations' operations. It also allows the company to strategize & enhance its employee benefits program and emerge as an excellent workspace.

While these were just a few of the many reasons why the adoption of HR Outsourcing Services is gaining swift popularity, other factors might include the following:

  • Accessibility to HR expertise
  • Better risk management
  • Enhanced employee engagement
  • Greater focus on revenue generation
  • Higher flexibility
  • Minimizing risks & HR cost 
  • Procuring more suitable talent, etc. 

Prominent Service Offering in HR Outsourcing

Talking about services, HR outsourcing offers payroll, benefits administration, recruitment process, learning services, multi-process human resources, and others to the organizations where the Payroll service is most popularly in demand. And why not? Who does not want their salaries to come on time, to get incentives and other facilities that are not in the salary or a proper account management system? 

Well, all these aspects, alongside numerous others, are covered in the Payroll HR outsourcing services utilized by businesses. The demand for these services is likely to fuel across the UAE principally on the back of the growing awareness about the perks like legal, tax, and accounting support, ensuring that the employees receive their paychecks accurately & timely, with minimal risks, among others. 

What further adds to the high demand for these services is enabling organizations to manage their payroll & simplify legislative compliance while taking off the massive administrative burden from the team, as these services are outsourced. Hence, these aspects hint toward lucrative opportunities for the leading players to expand their service portfolio and consumer base throughout the country in the coming years. 

Summing Up

As all the aforementioned factors exemplify estimation toward a lucrative future of the UAE HR Outsourcing Services Market, the leading players are actively exercising the untapped opportunities to expand their service offerings, visibility, and consumer base throughout the country. Hence, it can be said that such aspects are set to lead the market toward substantial growth in the coming years. 

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