“Should Your Company Outsource Its HR Department?”

07.18.18 | Management Tips


Whether to keep a department in-house or outsource the work is always a consideration for businesses. Each offers its own pros and cons, so at the end of the day it comes down to what will work best for your unique operation. If you only require certain marketing projects throughout the year, an agency you work with when needed is likely the best budgetary decision for you. Another department worth considering is human resources.

Over the last 40 years, HR as a concept has been revolutionized by evolving policies and procedures. Before, it was an area focused on simple tasks, including mediating employee disputes, hiring, and letting employees go. Instead of HR falling under another department, it now needs a dedicated presence to ensure compliance. Because of this, many companies, especially small businesses, are electing to outsource some or all of their human resources work. If you’re wondering which the right option for you is, ask yourself the following three question.

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1. How many employees do we have?

If you work for a business with a small number of employees, hiring a person whose job is to manage their information and status could be expensive and unnecessary, especially if you have a low turnover rate. In the past, you may have designated one person to handle all the HR-specific tasks, but you’re finding even in a small company, they are spread too thin. In fact, more than 20 percent of companies choose to outsource their HR to free up time for their employees to focus more on the big picture. Larger companies with more employees should have someone to handle all of their HR issues.

2. Can we afford a new staff member?

Approximately 26 percent of companies decide to pursue outsourcing because it saves money. When you outsource, you can choose what services are offered, as well as how often they’re needed. A full time or even part time employee requires a consistent salary.

An option to save money without losing out on the HR benefits is to have an employee in-house who can handle certain tasks and select another agency to assist with the more time-intensive issues. This is a very common approach, with more than 70 percent of companies choosing to outsource specific areas, such as 401(k), temporary staffing, and employee assistance.

3. Are we willing to keep up to date?

Even if you have the people with the ability and time in-house, are they prepared to stay up-to-date with the changing policies associated with the industry? When laws change, from medical to tax-related, they trickle into the workplace and your HR person needs to be aware of what they are and how they affect your employees.

Need staffing help?

If you’re looking to outsource some of your hiring for temporary light industrial projects, Workbox Staffing has the talent you need.

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