Why are more companies choosing HR outsourcing?

March 31, 2014

The short answer is the bottom line.

HR outsourcing enhances productivity. When human resource functions are handed over to a strategic partner, leaders can focus on operations and growing their core business.

The administration of many functions that are typically managed by a personnel or human resources department may be seamlessly transferred to an HR outsourcing firm. An increasing number of small and medium sized businesses are outsourcing HR functions. The recession, an increasing burden of government regulation and the rising cost of managing HR administration in-house are cited as key influencers fueling the trend.

Payroll services top the list of most frequently outsourced HR administrative functions, but there are many more including interviewing, training, staff development, performance appraisal systems, employee handbooks, background screening, conflict resolution and compliance with state and federal regulations.

With  the number of government regulations imposed on employers multiplying at break-neck speed, a growing number of companies are discovering that they can significantly reduce the cost of compliance by engaging a strategic partner to manage compliance. Outsourcing compliance management reduces employer liability , netting even greater savings.

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