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Should You Outsource HR Tasks?

Outsourcing human resources is becoming more prevalent than ever, as the industry is expected to grow to over $45 billion by 2027. As businesses adjust to modern times, they’ll look to outsource HR to optimize their operations.

But should you outsource HR tasks? What does outsourcing entail, and is it worth it?

That’s what we’re looking at today. Read on to find out more about outsourced HR in 2021.

What Does Outsourcing Your HR Look Like?

HR outsourcing is when a business hires a third-party firm to handle or oversee its human resources functions. This means things like in-house payroll and employee benefits are handled by that company.

Outsourced HR is designed to help companies focus on their primary services rather than coordinate their human resources functions simultaneously. Let’s now take a look at the different types of HR outsourcing.

Types of HR Outsourcing

Outsourcing your HR comes in two primary ways: regular HR outsourcing (HRO) or through personal employer organizations (PEO). Their services overlap, but the legality of the two are quite different.

PEOs use co-employment models where you get some control over what the employees are handling and working on. You can sometimes pick and choose which specific HR services they work on.

HROs don’t use co-employment models, but they’re more flexible in what you want them to work on. If you need them to do just one or two simple tasks, then they’ll usually oblige.

Who Uses It?

If a company spends a disproportionate amount of time on human resources tasks like payroll functions, they’ll typically outsource these services. Some businesses might not have the money to hire dedicated HR staff.

Companies that find their regular employees have to handle HR tasks also look to outsource these functions. That way, a company can focus on its main tasks rather than constantly worrying about payroll.

Even businesses that aren’t struggling with their HR workflow might outsource one or two functions just to free their workers up. It’s a flexible model that any company can use to become more efficient.

So Should You Outsource HR?

The question still stands: should you outsource HR for your business? If payroll is something you want to take off of your plate, then you should consider payroll outsourcing firms.

If you’re struggling to keep up with employee benefits and don’t want to be penalized by your state or federal regulators, outsourcing is another great option. Firms can handle these complicated ledgers on your behalf.

There are also plenty of other employment laws that your company will have to comply with. HR outsourcing companies can handle those logistics and help you stay in line.

Talent acquisition might also be something you’re trying to outsource. If your team doesn’t have time to find candidates for a new position, HR outsourcing firms can handle that for you, provided you give them the right criteria.

Finding The Best HR Outsourcing Company

Are you looking to outsource HR functions for your company? Use this article to help you find out just what an HR company does and why you might need their services down the line.

For more informative articles on HR and other business topics, check out the rest of our site!

Zaraki Kenpachi