Why Outsourcing HR Could Benefit Your Company

by | Jun 2, 2020 | Business Feature

Businesses big and small often make decisions to help save costs and improve productivity. For smaller enterprises, it is sometimes not viable to have everything under one roof due to space and costings. However, that doesn’t mean that a company cannot take advantage of specialized and expert services to improve their organization. One example of this is outsourcing. Several functions can be outsourced in a company, including ones that are traditional in-house based. An example of this is HR.

While having a dedicated HR team internally is beneficial for many reasons, some companies may struggle to attribute the necessary resource for this team, which could leave gaps in the HR system. To ensure you have everything in place, take a look at why outsourcing the HR function could be perfect for your business.

It’s cost-effective

Cost is a significant factor for many small businesses, and money may not stretch to an in-house team. However, to get everything you need for compliance and efficiency, outsourcing is a great solution. Most payroll and HR companies provide a package that can be tailored to your needs and gives you one cost to budget rather than overheads of the typical internal team.

Risk management and compliance

The world of HR is changing all the time, and the training and knowledge required for this role are extensive. To ensure your company is always up to date with rules and regulations, an outsourced HR team has you covered. You pay for their expertise and knowledge, and it’s their job to stay in the loop, so you don’t have to worry about the details.


The beauty of outsourcing departments is that they enable flexibility for your business. If workloads increase, they can take more off your hands and vice versa if they decrease. You can agree on specific requirements and areas of HR to manage, and you can tailor your HR package to your needs. Many companies provide a range of services. For example, Zenefits is an HR Company that covers everything from onboarding to payroll and comprehensive reporting all within an integrated package. So you could use this type of package alongside an outsourcing company, and everyone has visibility of the system when required.

Frees up resource with the business

Another major benefit of outsourcing any task is the time taken to do a specific job is now free. This can help people across the business manage time effectively and spend fewer resources on general administrative tasks. For managers, this is especially important, as some aspects of HR are time-consuming and detailed, which deters attention away from other pressing matters such as business development. The automation and streamlining of these processes alongside an outsourcing company also enable businesses to re-evaluate current procedures to improve productivity.

Fewer mistakes

Mistakes can cost money and time, and in HR, they can also result in errors in compliance. Outsourcing is a great way to ensure mistakes are minimized. There are also protection clauses in contracts to ensure your business does not bear the brunt of inaccuracies.

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