When to use HR Outsourcing and Why



HR outsourcing trends need to be put aside for the moment. You basically need to think about outsourcing HR when you can not properly manage your human resources needs. This depends on many factors and the exact time varies from one company to the other. In most cases you will want to do this when you are growing in employee numbers and you do not have someone to handle human resources needs.

Keep in mind that HR is not the only domain you can outsource. Based on your profile you can eventually end up gaining profit from outsourcing a lot more. This is especially true when talking about IT companies or small businesses that are moving towards a medium business size level.

We recommend that you first learn how to properly build your outsource strategy and then focus on every single aspect of your business. Outsourcing can prove to be the best move you ever made.

Why is the HR Outsourcing Industry Strong?

Nowadays HR outsourcing is really something that is needed for most small to medium sized companies. This is mainly because everybody is doing it and the benefits that you gained from doing this can not be achieved if you are not. HR outsourcing is really strong at the moment and there is no sign that this will change in the immediate future. The sheer benefits that you can obtain can not be taken lightly.


The main reason why HR outsourcing is needed at the moment is the fact that most companies can not do it properly alone. It is very hard to stay up to date with all the regulations you have to consider and the possible employee benefits that you should implement. Also, simply handling payroll is incredibly hard when we think about how much time it is needed to do it properly. Through HR outsourcing we can easily avoid any problem and we can maximize the time we have to dedicate to those business functions that are actually generating us profit.


The HR outsourcing industry is not changing much at the moment. The only differences that appear from time to time stand in technology used. This translates in speed of processing, which gains you more time. Unfortunately for companies that can not use it and do not have an in house good human resources department, as time passes a lot of problems can appear if we do not include HR administration. For instance, did you know that sexual harassment can cause you to lose so much money that it can lead to bankruptcy? This can be avoided if you include proper sexual harassment training in your company.


Also, if you lose too much time to deliver checks to your employees they will find it as a good reason to look for another job. You always want to make sure that you keep everything under control when dealing with human resources.

The HR outsourcing industry is this strong because it can aid you to keep this control at all times. If you hire a good provider you can basically say good bye to all problems that can appear. Also, if some problems still appear it is the responsibility of the provider and not yours. You are basically shifting responsibilities and gaining time and money. There is no reason why the HR outsourcing industry would not continue to be strong in the years to come as long as such benefits exist.

Why Work with an HR Outsourcing Company?

We have noticed that many people do not properly understand what is linked with HR outsourcing. A lot of individuals, including CEOs, think that it is not needed as the work such a firm would do is nothing and it is just a waste of money. The truth is that everything is exactly the other way around. We are talking about increased profits and cost cuts that can easily be obtained through the hiring of an HR outsourcing company.
It does not matter what your company needs because there is surely an HR outsourcing company out there that can deliver. Most of them are considered generalists because they will offer many possible services.

There are also specialized HR outsourcing companies that are focusing on specific domains of activity like recruiting or payroll administration. Based on the size of your own company and the control that you still want to keep over human resources you can basically outsource just some HR functions or the entire department. In most cases basic HR outsourcing service will include training, development, recruiting, staff requirements organization, tracking goals, strategies and objectives, administration of benefits, orientation programs for employees and manager training.


Keep in mind that companies that hire HR outsourcing companies are usually small or medium sized companies. In most cases we are talking about a maximum of around 1,500 employees.

In this case it is very rare that we see a company also having a special HR department. Such companies end up outsourcing human resources in order to use a strategic move that will allow them to not focus on HR responsibilities. They can thus focus on actually making money. You have to realize that HR related activities usually take up to 25% of the company’s time.

This is how difficult it actually is. If we use HR outsourcing companies we can get rid of that dead time and invest it in money making activities. Just think about the fact that HR outsourcing companies will offer you access to quality professionals that really know what they are doing. Operating and management costs are immediately reduced and such a company will also improve employee relations inside your firm.


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An HR outsourcing company offers you security, increased profits and good management, all at a low price tag. There is no reason why you should not consider it if you have a little extra budget to invest. It will be a very good business move.


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