Outsourcing HR services can help your company shift the focus onto your core competencies, avoid mundane administrative work and can even help you compete with your larger counterparts.

Many small to mid-size businesses find that outsourcing HR (Human Resources) functions is the best approach to take. Outsourcing human resource services is not only a great way to save on time, it is also cost-effective and takes the burden off from the manager or owner. Does your company too want to save on time and money? Have you always wanted to understand more about HR outsourcing before venturing into it? If yes, then read on to find out more about outsourcing HR services.

What is HR outsourcing?

Outsourcing HR services refers to partnering with an external service provider to manage certain tasks like recruitment, payroll, job postings or employee policies. In India, you will find service providers that exclusively deal with HR functions. Such service providers have several clients (large and small) and are proficient at handling any aspect of personnel related services. An important thing to remember is that the company you partner with will not be formally affiliated with your company in any way, apart from what in specified in the outsourcing agreement.

Why do companies outsource HR?

As per a 2009 survey conducted by The Chartered Institute of Personnel and Development, businesses primarily outsource HR functions to tap into the skills and know-how of a third party, to get better quality and to minimize costs. The most commonly outsourced HR functions are payroll, legal services and retirement planning. The survey also revealed that most business owners do not want to be bothered with handling human resources and opt instead to focus on core business functions like the company’s operations, objectives, mission and financial well-being. Continue reading →