Human Capital Management

Outsourced HR – When is it right for your organization?

/ May 21, 2018 May 21, 2018

The roles and responsibility of the HR function are constantly evolving. Each day HR professionals are being asked to do more with limited resources and budgets. With a never ending to-do list, many HR professionals are considering outsourcing some functions of HR so that they can focus on strategic organizational issues.

What is HR Outsourcing? 

HR outsourcing is a contractual agreement between an employer and a third-party provider of those services. You hire an HR consulting firm or individual contractor to support your business with a very specific project (compensation study, updating a handbook, or review of policies and procedures) or something more broad (outsourcing all of your HR work, implementing an HRIS system, or standing up an entire HR function). Outsourcing parts or all of an HR function allows business and HR leaders to focus their time and resources on strategic activities.

When should I outsource?

Many times organizations look for additional or outsourced HR support during times of change.  When evaluating HR outsourcing you must consider if you need a full-time person, project support or some part-time help. This should be driven by your organizational budget, size and strategic plans.  Depending on your organizations needs, outsourcing may be a good option when…

  • You need part-time, temporary or project support
  • A member of your HR team goes on unexpected leave
  • You have compliance and regulatory questions
  • There is a complex personnel issue
  • You have limited time but need project work completed (handbooks, updates to policies and procedures, compensation review and/or employee communications)

Making the Case for HR Outsourcing 

According to SHRM’s article, Outsourcing the HR Function, outsourcing has become increasingly important as HR professionals seek ways to reduce time and resources spent on transactions and administration, so they can concentrate on more strategic activities. Outsourcing projects or certain functions of HR can translate into additional savings for the business.  Each business will need to evaluate which HR functions they want to remain in-house and which make sense to outsource. Many organizations hold on to talent management, recruiting and succession planning and get help with compliance, technology implementations/evaluations and project or part-time work. Leveraging outsourced HR talent can alleviate your administrative overload so that you have time to focus on your business goals.

Onsite & Outsourced HR support 

If your organization is in a state of change or need some additional expertise to support, your current HR team Exude HR Pros can help. Our cadre of highly qualified HR consultants, with designations ranging from PHR to PHD, provide onsite or outsourced support in all areas of human resources including:

  • Recruitment & Selection
  • On-boarding
  • Compensation Processes & Compliance
  • Employment Policies & Procedures
  • Employee Relations, Training, Development & Employee Communication