Outsourcing HR can be confusing. We can help.
A few frequently asked questions – and answers – for those interested in learning more about outsourcing your human resources to certified* pros.
HR outsourcing is a contractual agreement between an employer and an external third-party provider whereby the employer transfers the management of, and responsibility for, certain HR functions to the external provider. Many types of HR outsourcing options are available to employers.
Human Resource Outsourcing is a process in which a company utilizes the services of the third party to take care of its HR functions. ... HR outsourcing helps an organization to gain cost and time efficiencies and provides cutting edge over their human resource strategies and improves services to their employees.
Here are the HR functions that are most commonly outsourced:
- High-volume recruiting.
- Temporary staffing.
- Background checks and drug screening.
- Benefits administration.
- Creating/updating employee handbooks and policy manuals.
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.
Organizations that focus solely on providing HR services will have much more advanced technology and processes in place to provide those services. Outsourcing your HR functions to such an organization can help to streamline your HR processes, resulting in more effective and efficient HR management and administration.
Pros and cons of HR outsourcing
Pros of HR outsourcing:
- Saves money. Small companies and start-ups usually can't justify the expense of hiring a full-time HR employee. ...
- Allows staff to be more strategic. ...
- Vertical expertise. ...
Cons of HR outsourcing:
- Reduced human touch. ...
- Loss of in-house expertise. ...
- Less availability.
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