12 Benefits of Outsourcing HR

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Do you ever feel like you're drowning in paperwork and HR tasks? Well, you're not alone! Managing human resources can get pretty complicated and time-consuming. But fear not. There's a popular solution that many businesses are turning to; outsourcing HR services.

Outsourcing HR services means teaming up with an external firm that handles all types of HR responsibilities. This includes payroll administration, employee benefits, and compliance. As a result, you end up freeing up your time. You get to focus on what really matters - your core business operations!

In this blog post, we'll explore all the amazing benefits of outsourcing HR. We're talking about major cost savings, access to specialized expertise, and more. Trust us; it's a smart decision that can make your business operate more efficiently and effectively. So sit tight, and let's dive into how outsourcing HR can give your business the boost it needs.

Cost savings

When you outsource your HR needs, you save money you could have used for employee training, salaries, benefits, and other expenses associated with hiring an in-house HR team. 

What's more, outsourcing HR will ensure your business's paperwork is done correctly and on time. This helps reduce the risk of costly compliance violations and penalties, which can be detrimental to your business's financial health.

You will also be able to save a coin through a risk management plan. A management plan ensures your business is operating smoothly and not making losses in case you experience downtime, reduced employee productivity, or broken or damaged equipment. This plan also covers employee and customer injury costs management. It ensures you have a financial safety net against compensation claims, paperwork, and hearings, just to name a few.

Access to Specialized Expertise

When you outsource HR, you get access to specialized expertise in areas such as labor laws, compliance, and benefits administration. This expertise can be invaluable, especially if you don't have the internal resources to manage these functions effectively. 

Outsourcing HR functions will also provide your business with access to the latest HR technology and tools, further improving your business efficiency and productivity. Your business will never have to struggle with key HR services such as payrolls, employee work schedules, or tracking employees' performance.

Streamlining Vital Functions

Outsourcing HR services helps streamline vital functions such as recruitment, onboarding, performance management, and benefits administration. HR outsourcing companies have the expertise and resources to manage these functions more efficiently, saving your business time and effort. 

You'll no longer have to do mundane tasks such as paperwork. Rather, you'll be busy running the business, ensuring your customers are satisfied and making more money. HR outsourcing services can also help improve employee retention and productivity. More on this on our next point!

Enhanced Employee Experience

An HR outsourcing provider can help you ensure payroll processing, benefits administration, and other HR functions are fulfilled timely and accurately. This can help improve employee morale and engagement. 

According to a recent study, happy employees are 20% more productive in the workplace than their counterparts. To put it in context, happy employees mean improved customer relations, positive company culture, better brand reputation, reduced turnover, etc. In simple terms, you'll have a strong workforce that loves what they do for your business.

Risk Mitigation

An HR outsourcing company can help you mitigate risk by ensuring your business is in compliance with employment laws and regulations. These laws and regulations change frequently, and you may, at times, not be aware of the changes.

One of the main duties of an HR team is to stay up to date with state employment laws. Therefore, an outsourced HR team will always ensure you're in a safe space with government regulations.

Your HR services provider can also audit your business policies to ensure practices such as workplace safety, employee privacy, and discrimination are well managed. These are practices that, if not well taken care of, can risk your business reputation and finances.

Improved Data Security

Cyber attacks are on the rise. Criminals are looking for any available vulnerability to exploit. Therefore, all personal data needs to be well protected. You cannot risk leaking your employees' bank details, home addresses, or whatever data you have about them. This means you need to use well-secured platforms.

Good thing HR outsourcing companies have robust security measures in place to protect sensitive employee data. This includes encryption, firewalls, and other safeguards that help prevent data breaches and cyber-attacks. Outsourcing HR can help businesses mitigate the risk of data loss and reputational damage.

Access to the Best Talent

HR outsourcing providers have access to a larger talent pool and can help you find the right candidate for every job opening you have. These providers often use advanced recruiting techniques and have a deep understanding of the job market, which allows them to identify and attract top candidates.

Moreover, HR outsourcing companies also have a wealth of experience in conducting interviews, assessments, and background checks. They can identify the most qualified candidates and provide them with an objective evaluation, leading to more successful hiring decisions.

Get Ongoing Employee Training and Development

Employee training and development is quite worth it, and every business should exercise it. Employee training and development shows your employees you care about them, which can lead to improved employee experience, retention, and engagement. Training also helps identify employees that are ready for promotion. And while you may not have time or resources to conduct training, HR outsourcing companies have a wealth of experience in developing and implementing training programs that can help your employees improve their skills and knowledge.

These training programs can cover a wide range of topics, from leadership and communication to technical and job-specific skills. With the help of HR outsourcing providers, you can ensure that your employees are continuously improving their abilities, leading to increased productivity and better job performance. 

Access to Efficient Performance Management Tools

Performance management is a critical aspect of HR that is often time-consuming and requires specialized expertise. An HR outsourcing service can help your business access efficient performance management tools that can streamline the process.

HR service providers can provide your business with advanced software tools that can track employee performance, schedules, and work hours. The software tool can also provide real-time feedback and generate reports. These tools can help businesses identify performance gaps allowing them to take corrective action as soon as possible, leading to increased productivity and better job performance.


Working with an outsourced HR team gives you the flexibility to choose the level of support you need for your business. You can opt for all HR functions or only specific functions that your internal team lacks the capacity to manage. 

You also get access to a team of experts at your disposal. You can contact them seasonally depending on the needs of your business, or you can have them handle your HR needs full-time. Such flexibility can help your business adapt to changing needs and reduce overhead costs.


As your business grows and expands, you'll need to adjust your HR needs. An outsourced HR provider can help you scale more quickly and efficiently. They will give you access to HR solutions to help you grow. For example, recruitment services to ensure gaps are filled promptly, onboarding services by evaluating if your business has the right people in the right jobs, and training services to ensure every member of your team has the needed tools to bring results for your business. 

If you're scaling down, you'll also have a team to handle all that. You will not have to add a department that didn't exist to handle your newfound needs. 

Strategic Partnership

HR outsourcing companies can serve as strategic partners for businesses. They can provide guidance and support on issues such as employee engagement, talent management, and workforce planning. The HR professionals are the to-go-to people when you want to improve your workforce performance and your business bottom line. And because HR companies are highly skilled in people issues, they'll be sure to offer you comprehensive and customized solutions that'll help your business develop long-term strategies that drive growth and profitability.

Let an HR Outsourcing Firm Elevate Your Business 

While you may be reluctant to consult an outside HR team for your HR needs, outsourcing HR can provide your business with significant benefits. This includes cost savings, enhanced employee experience, improved compliance, and strategic partnership. 

It's possible your internal team doesn't have the needed expertise needed to handle all your human resources needs. And that's okay. What you can now do is consult an expert HR team to handle your business HR needs. Also, you may need access to tools to elevate your HR management. One place you can get such tools is ShiftBase.

At ShiftBase, we fully understand your employe scheduling and hour registration needs. We offer comprehensive HR user-friendly and cloud-based workforce management tools that can ease your HR work. Sign up today and try Shifbase for free for 14 days.

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