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Outsourcing HR: The Good, the Bad, and the Tasks

Source | : By Meghan M. Biro

There are many reasons to have an in-house human resources team within your organization. From new staff onboarding to benefits management, having easy access to HR is a tremendous resource for any organization with a growing workforce.

Still, there are many instances where outsourcing your HR needs makes more sense. According to the Society for Human Resources Management, there are definite advantages to outsourcing HR tasks, among them a focus on strategy, improved compliance and accuracy, and a chance to leverage technology to streamline tasks and costs.

Let’s look at some advantages of HR outsourcing—also known as HRO:

  • Reduces costs. The fewer employees on staff, the smaller the payroll. By outsourcing, you are paying for what you need, not paying for what you don’t need. Whether it is a contract that spells out what you are getting or an hourly rate, you will end up paying less for the service than someone you have to pay a salary too. You will also save on the cost of benefits and payroll taxes
  • Allows HR to focus and be more strategic. An HR staff removed from the distracting elements of the company’s day-to-day operations can be more productive, especially regarding long-term goals like recruitment.
  • Offers more expertise and services. An outside agency who focuses solely on HR offers expertise in areas you might not have thought of and they have the staff to grow with you and take care of all your needs. Because the services they offer are wider, you can add services as needed, keeping your costs lower and your time spent growing your company.
  • Less burden on a leaner staff. HR is arguably one of the hardest-working parts of any organization. If it remains the same size while the rest of your staff grows in leaps and bounds, then tasks are bound to pile up.

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