What are the Objectives of HR Outsourcing?

What are the Objectives of HR Outsourcing?

by on 30 Mar, 2022

HR outsourcing could be the solution your small business needs to help you grow and thrive. While you may not have considered HR outsourcing before, the right partner can help you free up time, control costs, manage risk, consolidate vendors, and attract and retain top talent in your industry. Your competitive advantage awaits.

9 Objectives of HR Outsourcing

HR outsourcing provides small businesses with countless benefits. Here are the top five objectives you should expect from a leading provider.

Free Up Time

Your in-house HR team is slammed. Maybe you do it all, perhaps you have an HR department of one, or maybe you’re big enough and have a few HR employees. Undoubtedly, they are constantly busy focusing on mundane and repetitive HR tasks, which take their time and focus away from helping you build a great company culture.

By outsourcing these types of tasks, your internal HR team can focus on human capital management. By shifting their focus away from payroll complexities, employment taxes, and new employment laws and regulations, your internal team can build a company culture that keeps your high-quality employees on staff.

Company Culture

Strengthening company culture can be your internal HR team’s most significant focus. It could also be their biggest challenge. No two employees want the same thing from their employer, and pizza Fridays are overdone.

Company culture requires a genuine investment in your employees. Giving them the benefits they want, a solid work-life balance, and the flexibility and trust to do the job you hired them to do will go a long way to strengthening your company culture. Without outsourcing some of your HR tasks, your HR team won’t be able to give your company culture the time and attention it deserves.

Employee Relations

Along with company culture comes employee engagement. Too many companies think employee engagement comes from those pizza parties. It doesn’t, and if you try something like that, your employees will see right through it, and it will have the opposite of your intended effect.

Employee satisfaction and engagement require constant maintenance by your HR team. This means having clear policies in place for performance management, raises, and promotions. Without clear direction, employees are lost and disengaged.

Control Costs

For every small business, costs are a huge factor. Every decision you make must include a consideration of the financial impact.

Administrative Costs

One of the biggest costs you have is payroll. Hiring a new HR team member can cost you tens of thousands just to get them in the door. Then you have their salary on top of that cost, further busting your budget.

You can avoid these types of administrative costs by partnering with an outsourced HR provider instead. HR outsourcing is like hiring a team of HR professionals all at once, for a fraction of the cost.

Employee Benefits

Small businesses need to offer employee benefits to stay competitive. But so many benefits are cost-prohibitive.

An HR outsourcing company may be able to give you access to their master benefits plan, which can let you choose from a series of high-quality benefits. The best part is that because your HR outsourcing provider offers these benefits to many clients, they can offer them at reasonable and cost-effective rates. This means you can give your employees the benefits they want at costs you can afford.

Risk Management

Effectively managing risk is vital to your company’s health. There are many ways to manage risk, and your HR outsourcing provider will help you manage these.

Implementing a company safety plan is a great start. If you operate in a high-risk industry like construction, a safety plan combined with a safety training program can help keep your employees safe on the job.

Your partner will also provide you with access to management training to reduce the chances of an employee lawsuit based on discrimination. Dealing with ever-changing labor laws can make your head spin, so your HR outsourcing partner will keep up to date and help you prepare for any changes. Maintaining compliance with federal, state, and local employment laws reduces your chances of fines and employee lawsuits.

Consolidate Vendors

HR departments work with countless vendors. You may have one vendor for payroll, another for benefits, and still another for taxes.

A comprehensive HR outsourcing solution will combine all of these into one, easy-to-use software. You will only need to remember one login, and you will have access to all the tools you need to manage your business effectively. Your employees will also be able to access all of their information in one place, reducing the number of times they need to come to you with questions.

Attract and Retain Talent

Ultimately, your employees are the oil that keeps your business engine running. Without them, your business would falter.

Having access to a better employee experience and getting Fortune 500 benefits at prices you can afford will help retain your high-quality workers. And it will help you attract even more as your business continues to grow.

Which HR Outsourcing Objective is Most Important for your Business?

What matters most to your business is unique and depends on your company goals. You need to have alignment between your goals and your outsourcing objectives. Once you do, you can find the right HR outsourcing solution to meet your small business needs.


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Disclaimer: this article does not represent expert advice and is provided for informational purposes. Please get in touch if you would like expert HR advice.

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