HR
7 Reasons Why You Should Consider HR Outsourcing
-
Feb 17, 2023
Outsourcing your HR strategy is one of the best business decisions you can make in 2023. To leverage HR outsourcing as much as possible, it’s important to evaluate your current stage of business and how to best implement your comprehensive solution – taking inventory of the cost-benefit analysis and effects across your organization, and current gaps you’d need to be filled to allow for the full scale of the changes to be recognized.
Below, we’re exploring the benefits you can expect after you begin the HR outsourcing process, and what HR outsourcing truly encompasses in your daily tactical business operations.
What is HR outsourcing?
HR outsourcing is a term used to denote a delegation of services in the HR realm, allowing a third-party business, software, or individual to manage separately from your organization. While your delegate may work within your organization or on behalf of your organization, this term is not generally used for in-house hires.
There are plenty of benefits your business could gain from strategic HR outsourcing with reputable HR outsourcing services. Read on for our comprehensive list, and to determine if HR outsourcing support is the right choice for your current state of business and scale.
1. Specialty support
In-house HR team members come from all backgrounds and levels of expertise. When you choose to outsource your HR audits and other regulatory tasks to a skilled third party, however, you can have the assurance that there is a baseline foundational understanding of the skills needed to successfully manage and address your business’s HR needs. This specialty support can come in handy for specific tasks, such as organizational risk mitigation and HR Audits.
2. Cost savings
While outsourced HR can come with an upfront or monthly cost, it can be far more affordable than the cost of hiring the wrong person or litigating an employee complaint. For example, Bambee HR offers you an extensive HR support suite and a dedicated manager for just $99/month.
3. Efficiency and agility
Attempting to process complaints or maintain compliance can take days, weeks, or months. This can be compounded by variables, such as a lack of experience, training, or resources to do the task at hand efficiently. However, when you choose to outsource to a reputable HR company, you have the assurance that they have the resources and infrastructure needed to process requests efficiently and effectively.
4. Recruiting and retention
Optimized recruiting processes and enhanced retention on an organization-wide basis are also benefits you can enjoy when you choose to outsource HR support to an organization or dedicated service. While results are possible to get organically in your business within your scope of expertise, you can reach this point more effectively with an expert at the helm – building brand awareness and enhancing the experience of your current team members through the dynamic landscape of business in 2023.
5. Business culture enhancement
Your business culture requires constant effort and support to maintain. Leveraging the support of a dedicated HR manager or service outside of the organization gives you the potential to reach new levels of success, providing your team members with unbiased third-party entities to use for any needs, requests, or questions they may have. They can also rely on the expertise that these specialists can bring to a workplace culture, preemptively “treating” and supporting the modern workplace experience and positively impacting your team’s engagement.
6. Streamlined support processes
When you have an independent HR solution on hand for your outsourced HR needs, you can enjoy more streamlined support steps than you otherwise would through an in-house claims process. You’ll also have the ability to completely delegate HR-related tasks to a trusted third party, rather than taking up your team’s bandwidth.
7. Goal realignment
Across all businesses, one of the primary goals (if not the primary goal) is to pursue revenue-generating activities. Outsourcing HR allows you to do that more easily, realigning team focus and resources to revenue-related tasks rather than menial or staff-supportive functions. This can have a ripple effect across your organization, including better retention, engagement, and a more vibrant workplace culture. You may also see higher levels of efficiency across your departments and groups and positive revenue gain.
Frequently Asked Questions (FAQs) about Outsourcing HR
What do HR outsourcing companies do?
These specialty companies take on the tasks of HR management on an independent basis, providing services on a third-party or contractor-esque structure to provide the highest possible agility and support.
Is it good to outsource HR?
Outsourcing HR can be a strategic business decision that can save you both cost and organizational bandwidth. By housing all HR-related tasks in a centralized, third-party solution-oriented software, tool, or service, you empower your team to align themselves with revenue-driving tasks instead of tasks outside of their sphere (such as HR policy creation) – which can lead to overextension and burnout.
What are the types of HR outsourcing?
There are many different ways to outsource your HR tasks. You may choose to invest in an HR software, a freelance HR support team, or a comprehensive HR service like Bambee – leveraging the support and strategy that a dedicated HR rep can provide for a low monthly fee.
