5 Reasons to Outsource Human Resource Functions

Successful businesses must do a number of things well to serve their customers in an efficient manner. One of the most important things any business must do is pull in good talent and retain that talent for the long haul. This puts a premium on solid human resource departments. As companies like Google have demonstrated, a solid human resources approach can paper over a number of potential problems for companies. But how should companies go about structuring their human resources? There are many who argue that outsourcing HR makes good sense. Here are five reasons that might be the case.

1. Saving money
The top reason for outsourcing is easy to explain. Many companies save money when they outsource their HR operations. Not only do they end up paying less for the labor of an outsourced HR operation, but they also have fewer costs when it comes to training an HR staff. Allowing an experienced outsourced HR team to take over can make a major difference for the bottom line.

2. Freeing up energy to focus on strategic growth
Many companies find that they are spread far too thin when they have to handle their own HR functions. These administrators could be spending their time thinking up new products and new ways to meet consumer needs. When they have to spend time looking through resumes and writing job descriptions instead, these administrators can sometimes struggle to balance their duties. By outsourcing, administrators can focus more on the things they’re good at.

3. The battle to stay in compliance
One of the emerging challenges for companies is staying within the bounds of the law. This is not easy for administrators with no legal background. The law is constantly shifting, causing problems for companies that do not keep up. With this in mind, some companies feel that outsourced HR can keep them in compliance with all local, state, and federal laws.

4. Gaining the assistance of actual experts

Many companies rightly identify that they have a weakness when it comes to HR. Their in-house administrators know little about how to spot talent and retain it. They are awkward in interviews. For one reason or another, these people just aren’t in the position to provide expert HR service. This is when it can make sense to seek the help of actual HR experts from the outside.

5. Tapping into technology and big data
There are technologies out there that can certainly allow companies to choose better employees that more closely mirror the company’s overall needs. Going with an outsourced HR company can allow you to take advantage of these technologies without having to spend time and money developing the technology for yourself.

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