Should You Try HR Outsourcing?

Should You Try HR Outsourcing?

human resource outsourcingHuman resources is an integral part of any business, but you still shudder at the thought of HR outsourcing.

From benefits to payroll and company culture, it’s important that you have this department in place for the health of your business. However, some companies are going without due to lack of funds or time; though it may seem like an easy way around the problem, it’s not the smartest business move.

Your company is required to abide by a number of rules, not to mention staying on top of employee benefits and overall office environment. So, before tossing the idea of outsourcing the wayside, find out why you might need it and why it will in fact benefit you in the end.

Your Business Is Growing

Sure, with four employees, you could easily get away without an HR department in place – but as you grow, hire new employees, and fall under new brackets of legal processes, it’s important you have someone handling it all – giving you one, or a few, less things to worry about.

  • Try it: While services available will vary from company to company, most will take care of payroll, benefits, and management. Thus, with four less tasks on your hands, you’ll have much more time for what matters.

You Need To Save Money

Right now, many flourishing small businesses are still on a very tight budget. While you can get away with going DIY in finances, using your basic accounting knowledge, an HR department is one of the things you should not do yourself, if you can help it. While hiring a new employee – making space for them and getting their workspace set up with the right equipment – is expensive, HR outsourcing can make all the difference in your budget.

  • Try it: Though there are a variety of options including PEO and and BPO, try a web-based service, and pay per employee. When you compare this with the average cost of an HR department you’ll find you’re saving an extravagant amount.

Your HR Resources Are Minimal

The HR department takes care of important issues that may not be common knowledge for the average business owner. Often times, the small business laws are enough to make your head spin. So, if no one else in the office has the right resources or knowledge to take on this role, HR outsourcing will be a smart way to fill the gap.

  • Try it: You are likely not knowledgeable on federal and state employment rules and regulations and an HR service would take care of this for you. It’s better to have a professional handling these important aspects of your business before your business is found liable for something you could have avoided.

HR outsourcing is a great way to get an important role within your business filled. Whether you’re growing quickly, on a budget or just need a professional, there is no excuse for not having an HR representative in place – not only could it be damaging for your company, but your employees as well.

About the Author: Jessica Sanders is an avid small business writer touching on topics that range from social media to recruiting software and office furniture. She is a professional blogger and web content writer for

SMB Authors

This article is one of the excellent contributions from small business owners, decision makers and professionals.