When is Outsourcing HR a Good Idea

As companies grow and spread out over other states, countries and even continents, work is outdated, and often that includes aspects of human resources.

According to a recent survey by the Society for Human Resources Management, saving money is a primary motivator for outsourcing work with other key reasons including improving compliance, focusing on strategy, improving accuracy, taking advantage of technology and gaining access to HRO expertise.

Particularly as companies grow beyond their original state foundation, they seek assistance in ensuring they stay up to date on compliance data. Each country has unique labor laws, for instance, and growing organizations want to ensure that they are within the letter of hiring laws, insurance provisions and benefit provisions. Knowledge of the law is no excuse and can be costly if the firm unknowingly commits infractions to accepted labor practices.

As a human resources professional with a limited budget, you may also find yourself recommending outsourcing selectively to meet specific challenges. For example, many companies bring in trainers with special expertise in avoiding harassment in the workplace or dealing with negativity or anger issues.

Often times employees will feel more comfortable speaking to an individual who is an outsider about issues they are having in the workplace than the internal Human Resources person in the organization. In large organizations, teams or individuals who run into problems hire an external HR individual to mediate meetings and help problem solve. The reason for this is because individuals may believe the internal HR individual is bias and subjective about the people involved and the situation occurring.

Outsourcing can also be used to handle specific candidate recruitment or even things like the creation of employee handbooks.

Whatever the industry your organization is in, many times outsourcing HR is a good idea.

For more information on how you can implement outsourced HR contact SkyPrep today!