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The World of HROs Is Getting More Competitive
The Human Resource Outsourcing (HRO) market has witnessed steady growth over the past few years and is projected to grow substantially in the coming years. Experts estimate a 5.65% expansion by 2027. With this increased competition, and a client base with evolving, higher expectations, finding new avenues to grow revenue is essential for sustained success.
HROs play a critical role in supporting organizations, and by adopting innovative strategies, they can enhance their services and boost revenue streams. In this blog, we’ll explore ways forward-thinking, competitive HROs can increase their revenue and stay on top of their game by incorporating ATS and onboarding software.
HRO Revenue Generation Ideas
- Embrace Technology and Automation
- Diversify Your Service Offerings
- Focus on the Employee Experience
- Strategic HR Consulting
Embrace Technology and Automation
80% of HR professionals believe investing in HR tech has improved their business, and 89% of C-Suite executives say HR tech allows their organizations to be more flexible and responsive to the ever-evolving world of work. This results in saving money and generating additional revenue.
Incorporating technology and automation into your practices can significantly streamline HR processes, reducing manual efforts and the likelihood of errors. HROs can invest in advanced HR management systems, AI-powered chatbots for customer service, and predictive analytic tools for workforce planning. By offering these cutting-edge solutions, HROs can attract clients seeking efficient, data-driven HR services, thus expanding their client base.
Recruiting is the number one challenge facing HRO clients today. Offering recruiting technology, typically an applicant tracking system (ATS), helps solve HRO clients' top challenge, which can open new revenue streams. Private labeling an ATS—buying the solution from another organization and branding and customizing it to reflect your business—is an even savvier move, as it eliminates development costs. To fully understand what a powerful revenue-generating tool a private label ATS is, we’ve created a report, Private Label ATS: A Strategic Approach to Revenue Generation.
Diversify Your Service Offerings
Instead of confining themselves to traditional HR services, HROs can expand their offerings to include niche services that cater to emerging HR trends. This includes specialized training programs, DEI consulting, or mental health services. By staying attuned to the changing needs of the workforce, HROs can position themselves as holistic partners in their clients’ growth strategies.
Diversifying your service offerings to focus on DEI initiatives is smart when you consider that, overwhelmingly, most U.S. workers want to work somewhere to focus on improving DEI. Don’t know where to get started? How about recruiting? We’ve created The HiringThing Guide to DEI Recruiting to help organizations of all sizes start auditing their recruitment processes to become more DEI-centric.
Focus on the Employee Experience
A positive employee experience has become a critical factor in organizational success. In fact, 92% of employers told SHRM that improving the employee experience would be a priority over the next three years.
HROs can offer services that enhance employee satisfaction, such as personalized onboarding experiences, career development programs, and wellness initiatives. By enabling clients to create a more engaging work environment, HROs can attract the 92% of businesses looking to invest in their employees’ well-being and, consequently, their success.
Strategic HR Consulting
Many of the trends we see in HR lately involve adopting a new mindset towards work, something new technological solutions themselves can’t automatically fix. Whether adopting a different approach to remote/hybrid work, embracing AI, upskilling management, or becoming more people-centric, it’s about consulting clients to meet the demands of today’s new workplace norms.
Beyond basic HR functions, HROs can provide strategic consulting services that help clients align their HR strategies with their business objectives. This might involve workforce planning, succession planning, or even organizational restructuring advice. By becoming trusted advisors in strategic HR decisions, HROs can command premium fees and foster long-term partnerships.
Conclusion
In this ever-evolving landscape of HR and business, HROs must remain agile and forward-thinking. By adopting these innovative strategies, HROs can grow their revenue and solidify their position as indispensable partners in their clients’ growth journeys. The key lies in embracing technology, diversifying services, focusing on experiences, offering strategic guidance, expanding globally, exploring new pricing models, and harnessing the power of data. As HROs meet these challenges, they’ll discover a world of untapped potential and a pathway to sustained success.
About HiringThing
HiringThing is a modern recruiting and employee onboarding platform as a service that creates seamless talent experiences. Our white label solutions and open API enable HR technology and service providers to offer hiring and onboarding to their clients. Approachable and adaptable, the HiringThing HR platform empowers anyone, anywhere to build their dream team.
