Published On: Thursday, 10 August 2017

5 Reasons Why Outsourcing HR Makes Sense

5 Reasons Why Outsourcing HR Makes Sense

- Wendy Ferguson is an Associate HR Consultant with Chemistry Consulting.

HUMAN RESOURCES - Outsourcing HR is an option that makes sense for businesses of all sizes. In smaller organizations, business owners usually take on all HR tasks, managing these processes “off the corner of their desk”.

Even large organizations that have HR departments are often stretched to absorb the many responsibilities. Outsourcing the HR function alleviates some of this pressure and frees up resources so your focus can remain on your core business. Here are five reasons why outsourcing HR makes sense:

  1. Cost Savings – Employing an HR department is costly. By investing in exactly what you need out of an HR department you will greatly reduce your overhead costs. Outsourcing HR enables lean organizations to continue to utilize the expertise of an HR department, without the added costs of employing one.
  2. Compliance - Your external HR department will work with you to ensure you are compliant with federal and provincial employment and human rights legislation and avoid costly business consequences.
  3. Recruiting for Positive Corporate Image - Recruiting top talent is not only a speciality, but also often a very time-consuming process. Organizations that do not have the in-house expertise should turn this critical function over to a company that does. Align yourself with an external HR team that sees themselves as your business partner, who understands and represents your business properly.
  4. Flexibility and Efficiency – Outsourcing HR will allow you to quickly respond to growing business demands. Aligning your business with an external HR department provides you with efficient turn around on projects that enables your business to succeed.
  5. Continue To Do What You Do Best - An external HR department will allow a business to focus on their business strategy instead of getting lost in the timely administrative tasks required to run the business. Continue to do what you do best and rely on a qualified HR team to do what they do best. If you know your weaknesses, then you can optimize your strengths.

It is time to consider outsourcing HR when…

  • The administrative processes begin slowing down productivity.
  • You don’t have access to the expertise you require.
  • Your staff and management have taken on HR responsibilities for which they are not qualified or have time.
  • You are rebuilding the organization after downsizing.

Outsourcing has the potential to make your organization leaner, more adaptive, smarter and more profitable. Take your time and really think it through and only hire the best fit for your business. Ultimately, your external HR department’s goal should be to support your business by providing timely and honest advice, assisting with planned growth and preventing compliance issues.