HR Outsourcing

The benefits of outsourcing human resources

Not every company chooses to run a full-time human resources department. For reasons of cost savings, time management or even spacing concerns, many employers view outsourcing human resources as the best option for their company, rather than hiring a number of HR professionals in-house.

While it may seem more convenient and traditional to have an HR professional on staff, outsourced human resource professionals are highly trained and come with strong credentials that can be an asset to any business. With their help, employers can manage all the human resources needs of their company without requiring a physical body on the premises.

Human Resources Outsourcing Services

An HR outsourcing company may offer some or all of any number of human resources tasks, which means employers have the option of working with one or more companies to meet their needs if they so choose. A sample of the services that provided by HR outsourcing companies includes:

  • Recruiting and staff management. This includes recruiting, interview scheduling, termination, salary reviews and more. An outsourced HR professional may also work with a company to craft customized job descriptions and may have specialized knowledge on where to search for employees.
  • Risk management. Risk management roles might include resolving disputes, coordinating safety inspections, reviewing office policies and other safety and well-being issues.
  • Benefits and insurance. HR outsourcing professionals can help employers select the right health insurance plan and can act as a liaison with the insurance company.

When it comes to choosing an HR outsourcing company, you'll want to research into exactly what is offered and how business will be conducted. You'll also want to look for client references or referrals, as reputation is critical in this area.

Finally, look at the service schedule that each company is offering—many will offer around-the-clock service to help meet client needs and will assign a specific account representative who will be dedicated to understanding your company goals.

Outsourcing Payroll Services

Rather than outsourcing all their HR services, many employers choose simply to outsource payroll services. Many qualified HR professionals aren't trained in administering payroll or simply don't have the time, so a company may choose to work with a third party in this particular area.

An outsourced HR professional who handles payroll will perform duties such as issuing paychecks, calculating tax deductions, balancing pension contributions and other financial duties relating to employee wages.

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