What is HR outsourcing?
November 22, 2021 at 5:00 AM

Outsourcing professional services has become commonplace in many organizations. Outsourcing is simply delegating specific tasks to a third party instead of handling them in-house. Businesses can outsource any range of tasks or services, including IT, administration, HR, customer service, and marketing.

Human resource services are among the most commonly outsourced business functions. HR outsourcing involves having an outside company take over some or all HR functions, such as recruiting, payroll, benefits, and HR support. The outsourcing arrangement is a contractual agreement between an employer and an outsourcing service provider such as ourselves—H2H Enrollments.

Let’s explore HR outsourcing a bit more to learn the kind of tasks you can outsource and the benefits of having a third party take care of your HR management.

Which HR functions can you outsource?

As a human resource outsourcing company, we usually target administrative, mundane, and intricate tasks that might be difficult or time-consuming for businesses to manage in-house. However, it’s always up to the client to decide the tasks they want to outsource. You can outsource specific HR tasks (even to different agencies) or your entire HR management. It all depends on how much HR responsibility you can comfortably delegate. Here is a list of management tasks you can outsource to an HR services provider:

  • Payroll and tax filing
  • Employee benefits and welfare planning
  • Legal compliance with labor laws and guidelines
  • Employee assistance program (EAP) and counseling
  • Staffing (talent sourcing, screening, vetting, recruitment, and onboarding)
  • Retirement planning
  • Employee performance analysis
  • HR conduct coaching
  • Employee development
  • HR scheduling (time-off, sick days, vacations, etc.)

Remember, in both full and partial outsourcing, the employees will still go about their day-to-day business as usual. Nothing about how the employees work or interact with the company will change.

The benefits of HR outsourcing

Outsourcing HR is not reserved just for large firms; even small businesses can benefit from the expertise and resources that an HR agency brings to the table. Let’s look at the main reasons you may want to outsource your organization’s HR functions:

Save time and money

Cutting costs is the top reason for outsourcing, and this is true for HR outsourcing. Managing employees is a costly business. For instance, you may need a dedicated payroll accountant, staff representative, and HR administrator to keep HR running smoothly. Outsourcing HR functions eliminates all these costs by bringing HR management under one roof. It also saves you the time you'd otherwise lose hiring, training, and supervising employees.

Access specialized HR management talent

Having specialized HR management talent frees you to concentrate on more important matters. You can rest assured that the HR department is in capable hands without worrying about the nitty-gritty of the workforce. Plus, working with an HR service provider gives you objective insights into your HR, clarifying visibility into labor efficiency.

Reduce HR risks

Legal compliance in the labor sector is a dynamic maze. We’ll help you navigate the legislation surrounding labor regulations, such as workers’ comp, insurance, hiring, and benefits regulations. We could even perform regular audits to ensure that your organization stays on top of labor compliance.

Streamline HR processes

Besides proven expertise, our HR services also provide advanced technologies that mutually benefit the employer and employees. Putting together these skills and resources helps streamline HR processes by improving efficiency and minimizing errors. For instance, the HCM, HRIS, and HRMS solutions we provide can drastically simplify various aspects of HR management.

In a nutshell, HR services help your business get the most out of its workforce for a lot less hassle, time, and money. But this is only possible with the right partner—H2H Enrollments is that partner. We offer a full-service human capital management solution spanning over 20 HR functions. Contact us to learn more about our HR outsourcing services designed just for you.