Many companies are choosing to outsource certain HR functions in order to increase efficiency and focus more on strategic initiatives. Outsourcing allows HR professionals to offload some of their routine and administrative tasks, freeing them up to work on more value-adding activities. Here are some of the main ways that outsourcing can boost HR efficiency.
Frees Up Time for Strategic Work
One of the biggest benefits of outsourcing for HR is that it alleviates some of the day-to-day operational burdens. This gives HR managers and staff more time to spend on forward-thinking strategy and planning. Rather than getting bogged down with tasks like payroll processing, benefits administration, background checks, and recruitment, outsourcing these functions allows the internal HR team to focus on analyzing workforce metrics, developing talent, enhancing company culture, and other big-picture activities that impact business success.
Reduces Administrative Workload
Many HR responsibilities like payroll, compliance, and benefits administration involve large amounts of administrative work. These tasks are essential but can be time-consuming and repetitive. Outsourcing transfers this administrative workload off the plates of HR staff. This is beneficial because administrative work is not where HR expertise lies. Instead of spending hours on paperwork, HR professionals can outsource to virtual assistants and other remote personnel so they can devote their time to more meaningful work.
Provides Access to Specialized Expertise
Outsourcing partners specialize in the HR functions they provide, so they often have cutting-edge systems, software, and expertise that an in-house HR team would be unable to match. This specialized expertise raises the quality and efficiency of the outsourced HR tasks. For complex functions like benefits management, an outsourcing provider stays on top of compliance issues and technology in a way that overstretched internal HR staff simply cannot.
Frees Up Budget for Other HR Initiatives
Running an entire HR department in-house can be extremely expensive when factoring in salaries, software, tools, training, and other overhead expenses. Outsourcing certain functions on a cost-per-transaction basis is often much more budget-friendly. The cost savings from outsourcing routine tasks then allows companies to redirect budget towards other HR priorities that align closer to business objectives. This smarter distribution of the HR budget has a very positive net effect.
Allows HR Staff to Focus on Company Culture
Company culture is hugely impactful on recruitment, retention, engagement, innovation, and bottom-line performance. As the employee experience experts within an organization, HR teams are best positioned to nurture and promote a healthy work culture. However, when HR professionals are buried under administrative minutiae, they have little time left for culture building. Outsourcing operational tasks allows them to redirect their energy towards culture initiatives, manager training, employee engagement strategies, and other people-centered programs.
Additional Benefits
A few other ways outsourcing boosts HR efficiency include improved risk management, increased workplace safety and security, and better talent acquisition results. Outsourcing providers use specialized tools to mitigate compliance risk, ensure workplace policies follow the latest regulations, and thoroughly screen new hires.
The depth of capabilities from outsourcing enhances HR’s ability to function excellently across the board, but good training is vital if you plan to outsource roles. This resource has some useful tips for training new virtual assistants in your HR department and elsewhere.
Having an efficient, strategic HR department is critical for success. Outsourcing key functions alleviates everyday burdens for HR while providing world-class administration of essential tasks like payroll and compliance. This dual benefit empowers HR teams to operate at peak efficiency and maximum impact. By taking advantage of outsourcing, companies set their HR department up for transformation into a true strategic business partner.
Guest writer
