Outsourcing HR

What Are the Benefits of Outsourcing HR for Your Organization?


Running a business is no small feat. As an owner or manager, you likely wear many hats and handle various responsibilities. While you may excel in your specific industry, managing the human resources (HR) function can quickly become complex and time-consuming.

In today’s ever-changing legal and regulatory environment, an experienced HR partner is critical. Outsourcing HR can provide immense value to companies of all sizes.

Reduce Costs By Outsourcing HR Functions

For many small businesses, employing a full in-house HR team isn’t feasible. HR managers earn a national average salary of over $100k per year. Building an internal department requires a substantial investment when you factor in the costs of benefits, payroll taxes, training, and HR information systems.

Outsourcing allows you to only pay for the HR services your business needs. This saves money by eliminating the overhead of a dedicated HR staff. Only using and paying for select specialized services leads to optimal cost efficiency.

Outsource Administrative HR Tasks

Repetitive administrative tasks like payroll processing, employee benefits management, and HR recordkeeping can eat up huge chunks of time each week. Yet these aren’t the highest-value activities for your management team. HR outsourcing lets you hand off these important but tedious tasks to seasoned HR professionals. This frees up your managers to focus on more strategic, impactful initiatives.

Avoid Recruiting and Hiring Costs

Employing in-house recruiters and talent acquisition specialists carries substantial hard and soft costs. Experienced HR outsourcing partners provide these critical hiring functions at a fraction of the price of building an internal team. Their knowledgeable recruiters leverage the latest sourcing techniques and HR technology to connect your business with top-tier talent across various roles.

Outsourced programs for tasks like applicant screening, skills testing, and background checks also drive cost savings compared to in-house development.

Access HR Expertise On-Demand

Beyond cost savings, outsourcing provides access to HR knowledge that is difficult and expensive to cultivate internally.

Leverage Knowledge from Certified HR Professionals

Many outsourcing partners employ seasoned professionals with certifications such as Professional in Human Resources (PHR) and Senior Professional in Human Resources (SPHR). These designations demonstrate mastery of important disciplines like workforce planning, compensation, training, labor relations, and employment law.

Certified HR experts bring best practices and outside perspectives to the table. They have navigated countless real-world HR scenarios over their careers, plus stay sharp through ongoing education. These veterans can clear you of risks in areas like FMLA leaves, ADA accommodations, or wage/hour compliance while maximizing programs to attract and retain top talent.

Keep Up With Latest HR Best Practices

Because HR is their focus and specialty, outsourcing partners invest significant time staying on top of the latest best practices and innovations. They pursue continuing education and benchmark against other employers to be at the cutting edge. This knowledge benefits you by bringing fresh, effective approaches to the forefront of your HR operations.

Adapt Quickly to HR Technology Innovations

HR systems and software are evolving at a rapid pace. Applicant tracking, onboarding, learning management, performance reviews, and analytics are just some of the areas that see ongoing innovation. With outsourced HR, you can leverage these technological advances without investing time and money in in-house expertise.

Focus Internal Resources on Core Business

Beyond cost efficiency and expertise, outsourcing also empowers your management team to dedicate more time to the core activities that drive your bottom line. HR administration and compliance can divert key leaders from revenue-generating tasks.

Free Up Time to Focus on Primary Company Goals

Do your managers spend hours each week on HR paperwork, putting out fires, and attending to employee relations issues? With administrative and transactional HR effectively outsourced, those same leaders can redirect their time toward sales, innovation, production, service delivery, or other top priorities.

Relieved of these duties, leaders can apply their talents where they have the most impact based on your company’s strategic objectives. Their time becomes a more valuable asset.

Empower In-House HR Staff to Become Strategic Advisors

For businesses large enough to employ dedicated HR professionals internally, outsourcing likewise removes lower-value work from their plates. Rather than processing paperwork and handling routine questions, partially outsourcing lets your HR staff operate in a more strategic advisory role.With assistance in managing HR operations and compliance, your HR director or manager can devote their time to long-term workforce planning, talent development programs, and engagement initiatives that align employees with business goals.

Let External Experts Handle Changing HR Compliance Needs

It’s impossible to overstate how complex and constantly changing the field of HR legal compliance has become. What applied last quarter or last year may no longer pass muster. Managers often lack the bandwidth to research new case law, regulations, and enforcement priorities in the HR arena regularly.

Through outsourcing, specialized consultants absorb this burden of perpetual change. They continually monitor emerging compliance risks and adjust policies, handbooks, hiring procedures, training, and other programs accordingly. Removing this moving target from your plate ensures organizational compliance and reduces legal liability.

Provide Scalable HR Support for Business Growth

For organizations in startup mode or periods of rapid growth, outsourced HR provides flexible scalability that in-house teams may struggle to match. The built-in adaptability of outsourcing can power and sustain your changing talent needs as the business expands over time.

Quickly Scale HR Functions As Needed

With outsourced HR, it’s simple to dial services up or down as your organization grows and evolves. You avoid cycles of hiring and firing in-house staff to try to match support to the current headcount and priorities. Ramping up strategic initiatives like recruiting, compensation benchmarking, or training is straightforward via outsourcing. 

Access Top Talent Regardless of Location

Does expansion into new regions or countries leave you struggling to attract local HR expertise? Through outsourcing, your business can leverage the top resources already at your fingertips to build an integrated, consistent HR framework across geographical boundaries.

With specialized expertise at your disposal, you need not start from scratch looking to hire regional HR staff to support a new office location. 

Keep Pace With HR Needs During Periods of Rapid Growth

Growth phases bring increased hiring and exponential employee policy/handbook needs. New locations layer on added language, legal compliance, and talent management considerations. At the same time, managers are pulled into day-to-day operations.

Outsourcing provides seasoned HR professionals with the ability to immediately address intensifying hiring demands and questions when entering a rapid growth stage.

Outsource Your HR Functions With The Norfus Firm

Does your business struggle with HR compliance, payroll, benefits administration, recruiting, and other complex personnel issues? Offload these burdensome tasks so you can focus on your core business goals.

The Norfus Firm provides customized HR outsourcing services to organizations of all sizes. Their dedicated business management consultants manage your essential HR functions quickly and efficiently. Trust them to handle all federal and state employment regulations – so you avoid stressful lawsuits or audits down the road.

Visit The Norfus Firm online today at https://thenorfusfirm.com/ to learn more about their full range of HR solutions uniquely tailored for your organization.

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