Outsourcing HR: The Benefits

Corporate HR departments are busy. Aside from personnel and recruitment they may deal with payroll, tax, training, legal compliance and more.

Large firms have the resources to do this in-house, but small to medium-sized businesses can find advantages to outsourcing.

These include:

Cost savings

Managing a fully operational in-house HR department will entail significant back office expenditure, much of which will not be recouped. Staff recruitment and training, when combined with office space rental, is likely to be a huge expense. Outsourcing solves this.

Increased efficiency

A productive workplace is vital to the wellbeing of any business. External HR can make a business more efficient, as agencies typically use advanced technology and, alongside extremely skilled and experienced employees, streamlines the process, freeing up firms to focus on their own growth and development.


The business world has to content with regular legislative change, making it difficult for employers to remain on top of them. Outsourcing can ensure legal compliance is achieved with regularly auditing and updating of policies, avoiding the expense and bad publicity of potential lawsuits and fines.

Employee appraisal and development

In-house HR often lacks the time to carry out detailed employee evaluations.

Lose this responsibility and more time can be devoted to an employee's development opportunities. Regular performance appraisals and reports may also significantly reduces the workload for supervisors and go some way to creating a more motivated and productive workforce.

Photo (cc) City of Olathe