Why It’s a Great Idea to Start Outsourcing HR Functions

Outsourcing HR functions in whole or in part can provide companies with substantial savings, and it doesn’t really matter how large or small the company is. While corporations that are large enough to have multi-site operations almost always want to keep some HR representation on-site, they frequently outsource portions of the department’s duties like pension management. This is because investing in a full-range HR infrastructure is often inefficiently expensive, especially when it comes to benefits management. Luckily, there are a lot of cost-effective options out there.

Get Expert Help for Your Employees

Sending your HR functions out of the house can mean more than savings if you do it right. It can also mean fulfilling the needs of your employees more efficiently and with a better rate of satisfaction, because outsourced professional services are focused, knowledgeable, neutral third parties whose sole purpose is to provide help understanding and navigating issues from work/life balance to retirement planning. As you grow, you might find that you want to bring some of those services in-house, and a flexible outsourcing partner will be ready to work with you when that time comes, to update the services you need and the range of benefits you offer your employees.

Improve Compliance and Avoid Citations

Another area where an out-of-house contractor helps a lot is with regulation compliance. Whether it’s navigating liability around sexual harassment or workplace safety, they can advise from a neutral perspective and help keep every department accountable, reducing the risk of lawsuits stemming from liabilities related to the work environment in one way or another. This can lead to substantial cost savings down the road, but the exact effect is hard to quantify because of the lack of feasibility in side-by-side testing for it.

Help Your Company Grow

The last great reason to embrace outsourcing for your HR department is the ability to control your focus as you grow. Outsourced HR can improve hiring by casting a wider net than your in-house employees could manage on their own, but it goes beyond that. Your need for benefits management, dispute resolution, and other HR services will change as the company develops. Working with outside contractors means being able to add services for an easily predictable cost at the point where they are needed and without major infrastructure investments. As a result, your company can scale in the number of employees it has and the benefits it offers them without losing a lot of extra cash to overhead.

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