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How Outsourcing Human Resources Can Help Your Business

The Human Resources function deals with a company’s most valuable asset – employees. There are a number of different tasks an HR department must handle, such as recruiting, creating policies and procedures, benefits administration and more. While some, such as recruiting, are better handled in-house, there are other functions that take time and effort away from other tasks.

Over the past decade or so, outsourcing has become more common as companies are realizing the benefit this has in saving an organization a lot of money. This option can help scale back the HR budget while delegating tasks to an outside HR outsourcing company. When making the decision to outsource portions of an HR department, it is sometimes hard to determine what should be outsourced and what should stay in-house. Here are a few tips to determine the best way to make the most of outsourcing.

Define Your HR Department’s Role in the Organization


What is the overall mission or goal within the organization? If your priorities are more focused on recruiting or training, it might be worth looking at outsourcing more of the administrative functions, such as payroll, employee and company policy manuals, etc. Figure out which duties can only be handled by someone within the organization.

Determine What Can Be Outsourced


Tasks like temporary staffing, background checks and drug screening are critical to any organization, but none are the driving force behind the company itself.

Sometimes, items like employment screenings are best handled by an outside agency that specialized in doing just a particular function.

Building a Solid Team


Not all members of the HR department are skilled in all areas of the HR function. Outsourcing allows you to put together a ‘dream team’ of experts in each area of HR – whether it’s in-house or spread out among other companies.

Find Companies That You Can Trust


One concern that most have when considering outsourcing is – will the quality of work suffer? Ensure that you check up on the outsourcing companies’ background and that they have proper credentials as a reputable organization, such as accreditation with the Better Business Bureau. Utilize references that the outsourcing companies give you.

Outsourcing HR duties is a smart move for any organization. It allows a company to streamline a business, save money and give you access to outside experts in the HR field.

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