EHRA Tip of the Month

Benefits of Human Resources Outsourcing

Outsourcing of Human Resource business processes is a strategic tool that allows organizations to realize savings related to screening, headcount, benefits, worker’s compensation, and unemployment expenses. More and more companies are turning to outsourced services as a way to delegate operational and supplemental tasks in order to focus on core business and achievement of organizational objectives.

The most beneficial and commonly outsourced HR functions include background screening, benefit administration, temporary/contract staffing, recruiting, and relocation & spousal assistance. Benefits to outsourcing, highlighted by the SHRM article “Outsourcing and Offshoring HR,” www.shrm..org, Belin Tai and Nancy R. Lockwood, SPHR, GPHR, August 2006[1] are 1) Financial Savings, 2) Strategic Focus, 3) Specialized Expertise, and 4) Improved Service Quality.

Small to mid-sized companies often utilize outsourced services to replace or supplement a customary Human Resource department. Larger organizations often look to outsourcing to allow HR personnel to focus on mission-critical objectives. No matter the reason for contracting these specialized services, outsourcing allows company employees to focus on high pay-off activities that positively impact the bottom-line.

Vicki L. Hubiak, President
HR Solutions, Inc.