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What is HR Outsourcing and Why is it Good for Your Business?

Woman sitting at a computer, CVs around her

Imagine being able to focus all of your business attention only on growth-related objectives and leaving the HR heavy lifting and administration to third parties. Sounds relieving, doesn't it? That’s HRO’s (human resource outsourcing) little secret and its major advantage. 

Once you employ a team like Hansa Global to outsource your HR-related tasks, you will be offered a range of services - from basic HR administration processes like managing payrolls and help desks to onboarding, training, and education, as well as building partnerships with professional employer organizations (PEOs). With a reliable team, you can safely transfer responsibilities for HR functions to the external provider, as your day-to-day administration and strategic planning will be in good hands. 

HRO Accumulates the Umbrella of Services

Qualified HR outsourcing companies will assemble an umbrella of services to provide daily support in the following areas: 

hiring and recruitment

Hiring and Recruitment

We all know that mining talent and qualified candidates for your business is a long and tedious process. With a wide range of profiles entering the job market every day, it’s quite costly for a company to search through endless opportunities. With HRO, all you need to do is communicate your requirements. Everything else will be done by your outsourcing team - from building job descriptions and offers to recruiting, tracking contenders, and making a final selection. 

Managing Payrolls, Benefits, and Compensations

One of the best parts of outsourcing an HR team is that they will assist you with the complexity of payroll systems. They will maintain employers’ records, manage paid time off, and take care of vacations, individual compensations, incentives, and benefits. Moreover, many will automate direct deposits, which will significantly speed up the process and take the weight off your shoulders. This way, you could finally lean back, relax, and focus on things that are substantial for your business. 

managing payrolls, benefits and compensations

Training and Development

Today, the majority of companies are well aware that if they want to win in today’s markets, they should look at their people, not only their products and services, as their greatest asset. That’s why investing in training and education is and should be among the top priorities for capital management. And while some companies choose to revamp their in-house learning departments, others are turning to specialists outside of the organization who can provide lower-cost solutions with, often, greater efficiency and flexibility. 

Compliance and Risk Management

The goal of every business is to preempt eventualities that may confound progress and growth. With changes in tech and work environments, compliance and risk management are becoming increasingly complicated topics. They require more skills, knowledge, and experience than ever before, which is the main factor that turns more and more businesses to third-party specialists for support. 

Workplace Safety Starts With Building A Culture Of Safety Within A Company

While many think that safety-related issues are primarily associated with high-risk jobs, office jobs are also held to the same standards. Every company wants to ensure the best practices to subdue the risk of injury among employees, and often this includes outsourcing an HR specialist who will be the right hand in creating and maintaining a safety culture. 

Workplace safety

Why Is HR Outsourcing Good for Your Business?

Outsourcing HR services has been gaining momentum as it becomes increasingly popular among employers. It’s no longer reserved only for trendsetting businesses. Many companies became fully aware of its numerous advantages and started embracing the new trend. 

Having an in-house HR representative has its benefits, such as keeping all of the sensitive information behind closed doors, however, it’s very difficult to find one person with extensive knowledge of numerous processes and regulations that come with very costly consequences if not solved properly, and available to work 24/7. 

That’s why outsourcing HR functions and relying on a team of people come with various advantages:

  1. Opportunity to Save Money and Have Less Administrative Expenses

Keeping all HR functions in-house comes with its benefits, but it’s very expensive and time-consuming. On the other hand, relying on third parties when dealing with HR processes will leave companies with fewer administrative expenses while still being able to focus on their main business duties. 

Studies have shown that businesses tend to save over 20 percent of their regular expenses when relying on external providers. Moreover, HR outsourcing agencies and teams are equipped with HR specialists and experts. Being able to rely on one to take some load off your plate while your employees are focusing on substantial things is a true gem.

  1. Minimizing Errors and Omissions  

Managing payrolls, incentives, benefits, and other administrative tasks is usually a very demanding and time-consuming job. Leaving it to your regular employee, with other tasks on their plate could result in many processing errors due to a lack of experience, overload, and/or overstimulation. 

When you outsource HR services, the work will be delegated to specialists in the field who will make it easier to be compliant with laws and regulations. Therefore, the chances of making omissions and errors will be very low. 

Minimizing errors
  1. Ability to Offer More Services

When you have a small business, and keep all of your daily duties in-house, you are cutting yourself short on expansion and growth possibilities in terms of services and products you could offer otherwise. 

Outsourcing some or all of the HR functions will take a mental load off your head and let you broaden your horizons, along with making it possible to expand the list of services that you offer. 

  1. Happier Employees

“To win in the marketplace, you must first win in the workplace.” - Doug Conant

The truth is, the happier your employees are, the better your business will do. Imagine you have a qualified HR professional on board. You would naturally question the point of outsourcing additional help. However, the human resource field is very extensive, and having one person cover all of the tasks and functions will most probably leave the job undone, deadlines postponed, and that person overloaded and unhappy. 

Happy Employees

Therefore, even companies with a team of HR professionals often outsource at least some of the HR functions with the aim of ensuring greater automation of administrative and other HR processes. This way, you will have more work done in less time, and happier and healthier employees while keeping your budget intact.

  1. More Time to Focus on Substantial Things

A happy employee is a productive employee. And the latter is the driver of the workplace. Outsourcing HR functions has the benefit of paving the way for greater efficiency among employees and greater automation of payroll administration and compliance management.

This will, in consequence, leave managers and employers with less headache from endless paperwork and let them spend more time on tasks that are substantial for business growth and development. 

  1. Systematic Performance Management

When all the work is done, measuring and evaluating employee performance is one of the major tasks to maintain a competitive edge in today’s marketplace, and you, as an employer, would want to do it in a precise, fast, and not too complicated way. That’s where HR outsourcing comes in as a great helping hand. 

External HR teams and agencies have state-of-the-art tools, metrics, and procedures to enable systematic, methodical, and well-planned performance management. With a seasoned team that knows what they are doing and the latest tools and tech at hand, you will always be in safe hands. 

The business landscape changes every day, and with new tech and more companies that take an international approach, employers are pondering the value of outsourcing HR services. The new perspective leaves managers with the ability to truly focus on their business objectives, while employees are left in the best hands possible. This cooperation will get employers more work done in less time and with fewer expenses. HR outsourcing is the kind of win-win situation no one would love to pass up.

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