Why HR Outsourcing, and Why the Time Is Now

4 min read
woman with finger on hr outsourcing components tech, collaboration, people, data, decisions

Change is continuous. Businesses, people, processes, effective methods, and technologies adjust and change over time. This rapid change impacts business ecosystems around the world. Therefore, securing external partners via HR outsourcing becomes a great tool to manage positive and negative outcomes from change. Next, we break down some of those below.

Outcomes of HR Changes

The Positive:

  • Greater Ability to Measure Results
  • Newer and More User-friendly Tech
  • Fine Tuned Processes and Innovative Business Models
  • New or Improved Services and Product Lines
  • Better Tools to Understand Your Market
  • New Markets and Industries
  • Greater Volume of Data

The Negative:

  • Process and Data Require Constant Updates and Maintenance
  • Implementing Changes is Tough and Expensive
  • Investing in Future Talent and Tech Needs Requires Greater Risk
  • Changes are Too Fast for Businesses to Keep Pace
  • Competitive Landscape Increasingly Complex and Volatile

So, what do these outcomes have to do with HR outsourcing?

Human Resources is experiencing the greatest evolution it has ever seen. As a result, great companies are choosing to embrace this evolution by investing in HR outsourcing.

And HR outsourcing might be the single best move you can make this year.

Here’s why. 

HR Internal Teams Reduced with Access to Greater External Resources 

HR is a department which at first seems mundane, repetitive, and non-revenue generating. They have been shrinking over time, as transactional HR becomes expensive and fails to produce value. But with the new advances we’ve had in the last decade or so, HR has been turned to a mean, green and lean machine. In short, if you haven’t hopped on the HR outsourcing train, you’re missing out.

  • In the past we had to do payroll by hand which took a whole clerk/bookkeeper time and effort; no longer.
  • In the past we had to keep our eyes on our employees, having people punch cards to track their progress which took time and energy; never again.
  • In the past we had to shuffle paperwork in large, unsecured folders from cabinet to hand deliver for signatures; we gladly left this in the 1900s.
  • In the past we had to search, call, and even place physical papers to look for top talent … clearly, this is no longer the case!

You can now:

  • Access expert HR advisors without having to build that knowledge within the company
  • Implement easy and automated company wide employee tracking & metrics analytics
  • Increase employee manager effectiveness and streamline communication channels
  • Maximize profit through better performance measurement and review
  • Reduce mistakes from repetitive tasks such as payroll with automation
  • Provide employee relations support from the perspective of a customer
  • Improve revenue through strategic hiring and training
  • Get the value of an HR team for the price of one full-time employee or less
  • Eliminate redundant work across the company

Evolve or Die

First, don’t underestimate the importance of these value areas. Instead, attack the weak spots of your company’s workforce operations with military precision, as you find yourself in an ultra competitive environment that is very unforgiving to capricious, unethical, or un-strategic business practices. It takes an external hr outsourcing partner to look at your business from an objective lens to diagnose issues you may be too close to see. Moreover, with an hr outsourcing partner, you see improvements across channels and departments. You also see value reflected in your financials once your processes are enhanced, and your team is working more effectively together.

Next, don’t risk hiring the wrong person that can have you on a wild goose chase for months and thousands of dollars down the drain, after the person’s untimely exit! Similarly, you don’t want to waste time on repetitive tasks that can now be automated.

Finally, don’t wait for others to tell you how much of a difference HR outsourcing made for them, implement it now, and you can be the one evangelizing to them. It is your turn to make HR your unfair competitive advantage.

The Value Is Clear

The HR profession changed through systems, tech, better data and fresh approaches that use cross-functional knowledge and consulting techniques. This allows HR outsourcing partners to navigate across all departments well. It’s now clear that the HR function is a key factor in company growth. But at the same time, HR departments’ internal headcount have been declining over time.

Good news is we are here to guide businesses through this transition, from bloated HR departments to agile, strategic teams with internal teams and HR outsourcing partners integrated. Our blog contains free resources and HR wisdom nuggets. Additionally, we offer our own HR services to make sure you are always getting the most bang for the buck, so you continue to grow and succeed.

Let’s talk. In 30 minutes or less, we break down why HR outsourcing makes sense and how to make it your advantage.