What HR Functions Can You Outsource?

What HR Functions Can You Outsource?

Outsourcing human resources is a very viable option for companies these. And a lot of times, it is the best option. Yet, some business owners are stuck with the idea that having an in-house human resource manager or staff is the better, more cost-efficient option.

To be fair, having a full-time HR manager for your company isn’t a bad decision. But quite often, it’s not the best, especially for small and medium-sized businesses. Outsourcing, indeed, allows you to deal with human resource issues and functions cost effectively. This is one of the reasons why many businesses are looking for Online HR options for companies.

What many don’t know is that, as a business owner, you can choose specific functions to outsource. After all, different businesses have different needs. And human resources is complex; not every business will need every HR function and service.

Here’s a look at the HR functions typically outsourced by companies:

Payroll and benefits

Not only is payroll the most basic service online HR options for companies can offer, it is also the most popular. Payroll may services include salary calculation, producing checks and making salary deposits (or, if salary is given personally to employees, envelope stuffing), and calculating taxes.

Payroll is often outsourced because it can be time-consuming. It also leaves a lot of room for mistakes — and obviously, payroll mistakes are costly.

Employee benefits can also be outsourced. This includes retirement plans, health care, pensions, and other benefits given by the company.


Next to payroll, the most outsourced HR function is for legal compliance. And it is understandable since it is easily the most complicated part of having employees. Legal compliance simply means that your company follows all the laws connected to maintaining a workforce. Break them and your business can receive penalties; it could even lead to litigation. Outsourcing HR means you have the support of professional with the legal expertise that could save you from trouble.

Recruitment and background checks

Another essential function of HR is recruitment — or finding the right people for jobs at a company. HR handles every aspect of hiring new talent for the company, from tracking applicants and interviewing them to analyzing how much their salary should be. Outsourcing this function will speed up the recruitment process.

Online HR options for companies also offer services for background checks — an essential part of employee recruitment. This includes drug-screening services as well.

Many companies also offer post-recruitment HR services as well, including training (to make sure that the new hires are fully acclimated in the company, allowing them to focus on their jobs more quickly).

Workforce assessment

Workforce analysis is perhaps one of the more complex functions of HR in a company. This entails assessing the work of the company’s employees in aspects of engagement, attendance, competencies, health and safety, productivity, and compensation.

Of course, these are only the common functions that are usually outsourced. Tasks such as employee appraisals, employee relocation, employee relations, employee policies, HR strategies, and outplacements can also be outsourced as well.
You might know your Online HR options for companies but what HR functions should you outsource? Let our team of experts help you decide at www.hrcompanies.co.

Category Business

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