Outsourcing historically has a negative connotation. The very idea of outsourcing led individuals within organizations to believe they were being “replaced” with cheaper labor. In recent years, there has been a shift in how people view outsourcing and contracted individuals, and now outsourcing is seen as more of a partnership.

Contracting an independent provider to handle some or all functions within departments at your organization can be unnerving. However, partnering with the right provider can lead to great results. When it comes to Human Resource Outsourcing, you can choose whether you want a third party to take over some or all your HR functions. This is ideal for organizations going through a transitional phase, organizations with HR departments of one, or smaller organizations that might just need HR periodically. No matter the stage of your organization, outsourcing can be a viable option for you.

Organizations with large HR departments often have individuals designated to cover certain aspects of HR, but what happens when there are skills gaps? Various functions of HR can be outsourced to help fill those needs, including, but not limited to:

• Recruiting and Staffing
• Generalist Work (e.g., onboarding, background and drug tests, etc.)
• Benefits Administration
• Leadership Reviews and Coaching
• Payroll
• Policy Creation

Depending on how long the outsourcing business has been around, you may find a great third-party vendor with consultants that have experience working with organizations in your current field or other fields. These individuals will have a pulse on what is current in the market and can help offer advice on how to improve your company’s competitiveness. Most outsourcing firms staff with individuals that have diverse certifications that require them to stay up to date with continuing education regarding compliance issues. When you outsource and contract with a firm, you are not just getting one person, you are getting the entire team. Having that type of knowledge base at your fingertips for one all-inclusive price is sometimes priceless.

If you have ever heard the phrase “spring cleaning,” then you already know what an outsourced HR provider can do for you. When you are working with an organization that has HR as their primary business, they will have tools and technology or recommendations for both that can help streamline processes and bring more accuracy and efficiency to the organization to help you throw out the old and usher in the new.

Most people will argue that outsourced HR takes away from normal face to face interaction that in-house HR provides, or that outsourced HR is less available than a regular full-time employee. Partnering with the right organization, you can have an outsourced HR contractor that works with your organization on a hybrid basis that may be able to offer on-site and virtual help to balance out that need. Outsourcing can result in huge cost savings, especially for smaller organizations that do not need for a full-time HR employee. In addition, having someone that is dedicated solely to working on certain HR functions leaves time for leadership and other employees to focus more on strategic planning.

Interested in learning more about how HR outsourcing can help your organization? Reach out to Purple Ink!