Every company needs human relations (HR) management. The HR department is responsible for almost every facet of employee management: recruiting employees, screening them, hiring them, training them, paying them, managing their benefits, managing employee complaints, and much more. 

Businesses both large and small can find advantages in outsourcing HR. In fact, even if you only outsource some of your HR activity, you can still take the stress off yourself or your existing HR department and focus your energies on doing more for your employees.

What does outsourcing look like?

Payroll is the most commonly outsourced HR activity. Still, more companies are starting to see how it can offer several benefits, including increased efficiency and access to proper expertise. This is especially useful when needing advice on complex specialist topics and legal issues.

Here are three reasons why it could work for your business.

1. Leave it to the experts

HR can be complicated with a lot of delicate legislation. HR professionals are experts in their field, having to master several detailed areas of knowledge. A significant advantage to outsourcing your HR support is assigning specific tasks to experts rather than having one person or a team manage all areas.

Additionally, it allows your employees to focus on their long-term goals important to your company. It’s a win-win.

2. You can alleviate legal risks

As mentioned in the first point, most people don’t realize how exact rules and legal precedents can be. This has potentially become even more complicated with the introduction of COVID-19 related legislation like the Consolidated Appropriations Act. This Act provides over $2.3 trillion in funding $900 billion allocated for COVID-19 relief.

With such changes comes the responsibility to keep up with evolving legislation and new compliance mandates. By outsourcing HR, you can put trust in people who know how to ensure that your company minimizes exposure to legal risks associated with fast-paced changing local, state, and federal laws.

3. You can save money 

The cost of HR management can get relatively high. But outsourcing could save your company a decent amount of money each year. Around 300,000 jobs are being outsourced by the US alone in a year, and the top reason (70%) behind it is cost reduction. The advantage of outsourcing HR functions is that it is no longer your responsibility to manage the HR costs.

That’s because an entire team of HR professionals is expensive; you’re paying for salary expenses, including their taxes, benefits, and more. Plus, your office expenses will increase due to needing a larger workspace over time. Outsourcing removes all of these costs and allows you to invest in other areas of your organization. 

You can also save money in your recruitment process. One of the most time-consuming and expensive HR processes is recruitment, and if you outsource this function, you’ll significantly reduce HR costs. If you have full-time recruiters on staff, they may have downtime if there are no current positions to fill. Therefore, an option is to outsource your recruiting function to save money.