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The Complete Payroll Blog

Should your company outsource its HR Function?

Posted by admin | Nov 7, 2013 9:53:40 AM

Recently, we wrote about the benefits of outsourcing your payroll function. Today, we're here to discuss the pros of outsourcing your entire human resources function. Is it possible? Is it practical? Most importantly, is it a good idea?

The reason you'll hear repeatedly, from those in favor, is that outsourcing tasks like payroll, relocation assistance or benefits allows your company or HR department to avoid getting bogged down with day-to-day chores and instead lets it focus on its core business. Critics, on the other hand, point out that your people are your core business, and that outsourcing can result in a company not being personally responsive to their employees' needs.

To make the most educated decision for your own company, consider the following benefits:

  • Save time and money.  It's estimated that most companies can expect to save between 10%-20% on basic HR functions, seeing thousands of dollars in cut cost each year, even after paying the outsourcing fees. These cuts usually come from savings on nonrevenue-generating, back office expenses like worker’s compensation premiums, HR systems and infrastructure, employment practices liability insurance and legal fees.
  • Minimize legal risk and maximize compliance. With employment and labor laws changing regularly, it can hard to remain up-to-date on regulations that affect your particular organization, industry or workplace. Outsourcing firms employ people whose purpose is to stay abreast of federal- and state-specific employment laws and keep their client businesses compliant with these laws.
  • Gain access to technology and talent.  HR outsourcing providers make extensive investments in technology, methodologies and people, and they gain expertise by working with a variety of clients facing similar challenges. This will give you a competitive advantage and help you avoid the cost of keeping up with technology and training.
  • Create a more efficient workplace. Outsourcing helps employers and managers spend less time doing paperwork and other administrative duties and more time dedicated to improving HR programs and relationships in the workplace.

Still undecided as to whether outsourcing your HR functions is the right decision for your company? Call or contact Complete Payroll if you'd like to discuss it further. We'd be happy to share our clients' experiences with you.

Written by admin

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