Why You Need To Outsource Your HR Functions


Should You Ever Consider Opting Outsourced HR Functions? We Have Gathered Certain Evidences For You To Understand The Pros & Cons Of Manpower Outsourcing.
If we look back there was only hiring, firing and payroll. But now HR has grown more complex with ever-evolving health care program, consolidated omnibus benefits reconciliation Act (COBRA), 401(k) retirement plan, Americans with Disabilities Act are quite challenging for employers. Let’s understand the advantages of outsourced HR functions over these challenges.





One of the obvious advantages of outsourcing Human Resource functions is saving money through cost-cutting. The money that company essentially spends would not recover any revenue. Moreover, a fully functional HR department needs highly trained staff and a lot of office space, this makes up for a high back-office expenses. Thus it makes a good economic sense to outsource HR functions rather than to move into a large office space for a brand new HR department.




HR outsourcing helps minimize risk. Labor laws and employment rules change constantly that could be daunting for employers to keep up with them. These employers may find themselves left behind when it comes to laws that impact the workplaces and so outsourcing firms could make sure that they have well trained professionals whose primary job is to keep up with these laws and helps keep away from the danger.
These firms help business to comply with all the laws and avoid expensive lawsuits that might be against the employees too. In addition, they also maintain company policies to protect the best interests of the company.




When an organization outsources its Human Resource functions the Employee Development could be managed more effectively. The manpower outsourcing firm is able to put into action the performance management plans to make the employees comply with the terms and policies to meet business objectives successfully.
These firms could conduct an assessment evaluation of employees from time to time and submit reports to the company management. This not only lessens the workload for managers but also gives them an honest vantage point to take appropriate action.




To maintain a productive and efficient workplace is critical for any organization. Once you outsource HR functions, you form a higher efficiency within the human resource systems. Manpower Outsourcing firms utilize advanced human resource technology to streamline vital HR functions such as payroll, compliance and benefit administration.
When you outsource HR functions, managers spend more time focusing on their skills making the workplace more efficient –what a business owner wants to thrive.
Forget investing time with employees on developing engagement initiatives –compliance issues will consume all of your time. These are good reasons to consider HR outsourcing.

But if you wonder why other firms consider outsourcing human resources, Read on:
According to the Society for Human Resources Management (SHRM) survey they analysed hundreds of companies about their outsourcing habits and here’s what they have found;


The Six Most Common Reasons To Outsource:
• 26% of companies outsource to save money
• 23% of companies outsource to focus on strategy
• 22% of companies outsource to improve compliance – it‘s challenging to hold on with compliance and unable to meet requirements is quite risky so outsourcing is beyond smart to avoid such a risk.


• 18% of companies outsource to improve accuracy
• 18% of companies outsource due to a lack of experience in-house – Handing over a task you are not so proficient at to someone with expertise is a great business decision.
• 18% of companies outsource to take advantage of technological advances – outsourcing offer HR Solutions without a significant investment.