5 Reasons Why You Should Consider Outsourcing Your HR

5 Reasons Why You Should Consider Outsourcing Your HR

Running a business isn’t an easy task. There are many different factors to consider and the workload can easily become overbearing. One area in particular that can become overbearing is HR (Human Resources). HR is a large and very important part of a business. It deals with various aspects of employment, including recruitment, benefits, payroll and dismissal. All these areas require a lot of your time and focus and being a manager is often very time consuming. Here is where the problem lies.

A lot of small businesses these days are outsourcing their HR for various reasons. This article is a guide on what to consider when thinking about outsourcing.

Outsourcing Your HR Saves You Money

Wouldn’t it be great if you could deal with all of the HR issues and needs without having to hire any extra staff?

Here’s the solution, outsource your HR.

It can be expensive for any business to hire new staff, and anyone with a head for business is about saving money rather than spending it. Sometimes you don’t have it in the budget or you just don’t have the space or facilities for extra people. By outsourcing your HR, you’re paying one fee rather than multiple salaries.

Saves You Money

Based on information from Bersin & Associates, companies save an average of 21% on administration costs. This means 1/5 of the HR budget being saved whilst also receiving expert help.

Why wouldn’t you want to save money?

Up To Date HR Procedures

Are you sick and tired of trying to keep up to date with the ever-changing HR procedures?

Be honest, is the thought of reading up on the latest changes whilst trying to deal with the day to day is stressing you out?

When you outsource your HR, you will have access to help with things like an employee disciplinary, sickness and absence, resignation and maternity. All of these situations if dealt with the wrong way could lead to big consequences so it’s crucial to handle it correctly and outsourcing your HR is the answer.

Outsourcing will also give you access to the latest IT advances in HR. Up to date systems will help keep everything organised and give you online access to contracts of employment, employee handbooks, letter templates, inductions, etc.

But wait, there’s more.

With one click you have a complete overview of your business, from benchmarking statistics through to automated holiday approvals. You can manage employee records, securely store document records and monitor staff sickness/absence. It will also help you create reports to give you an overview of your workforce demographics, including staff turnover, busiest month and salary increase.


Expert Knowledge

Managing a company takes a lot of time and effort, and you may think having a good understanding of the company’s HR needs and responsibilities is enough.

But when it comes to running a business, the basics just won’t cut it.

If you outsourced your HR needs to another company, you are guaranteed to have a team of experts helping you, rather than having to interview people and hoping someone of quality applies. Having access to expert help with people who specialise in Human Resources will make it easier to keep up to date with the ever-changing regulations and be able to give advice when dealing with difficult situations.

Expert Knowledge

Having your HR outsourced will help you deal with things like pensions, payroll and recruitment, which having an experienced team will only benefit you.

According to the Intuit Small Business Employment Index, businesses who outsource their HR needs tend to grow 7% faster because they can focus on the business rather than having to deal with Human Resources as well.

Starting to seem like a good idea yet?

Need a little more convincing? Read on.

Saves You Time

Ever noticed there are never enough hours in the day to get everything done?

Imagine what it would be like to have someone take some of the workload off.

HR concerns take up a lot of time, particularly if you are a small business with limited staff. You won’t be finding enough time to make sure HR is in check and your business will suffer from this. By outsourcing your HR, this frees up your time, leaving you to focus on the business and let HR be dealt with elsewhere.

Studies have shown that business tend to grow more than 7% by simply outsourcing their HR department. It only makes sense to have people help you with the important areas so your business can benefit from your full attention.

Employee Development and Engagement

Listen: Any employee who knows they are worth their salt will want to progress.Now you’ve got to ask yourself: Is the opportunity there or are you denying your employees the chance to better themselves?

An important part of any business is the employees, in particular employee engagement and development. Employees need to be heard and feel like the work they do doesn’t go unappreciated.

Employee Development and Engagement

If you’re focusing on the business, this sometimes gets pushed to the side and forgotten about. This can lead to employees being unhappy and potentially leaving. Having a team to help and guide you will make sure the employees feel valued and give them opportunities to progress, which will then reflect in the work they do. It’s a win win for everybody.Another side to this is employee compliance and accuracy. Are your employees performing to the correct standard?

Is there a suitable training plan in place?

Outsourcing can bring in people to help put in the best training procedures and make sure employees are getting properly trained. This also gives the opportunity to retrain current staff or find areas that they are struggling with. This will lead to better efficiency, therefore your company will benefit for it.


So there you have it. There are many more reasons to prove that outsourcing your HR is a good idea, but these are the main five to consider. Having an expert team behind you will help you grow your company and only extend its shelf life.

Why wouldn’t you want that?

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