Did you know that over 60% of companies outsource their payroll to HR companies? But payroll is just one of many HR functions businesses hand over to external human resources specialists. There’s a whole lineup: recruitment, onboarding, benefits administration, employee relations, and more.

Why do they do this? Should you outsource HR functions?

 Well, that’s exactly what we’ll be diving into today. Here are 5 reasons companies love outsourcing their HR functions and why you should consider it for your business.

1. Cost savings

HR costs can be a real burden for small and medium-sized businesses. Recruiting, hiring, and training people for specific roles can consume time and money, especially when those roles might not be needed indefinitely. That’s where outsourcing HR functions comes in as a saviour, offering high cost and resource savings.

Outsourcing enables companies to tap into HR experts’ skills without the headache of recruiting, firing and rehiring whenever a specific service is needed. It ensures top-notch work without worrying about going through a costly recruitment cycle.

Our client Marie from Icon Software can vouch for this firsthand: “Using an external HR consultant, we didn’t have to have any additional costs on the business when we didn’t require that person’s services.”

2. Access to expertise

When you outsource your HR functions, you’re not just getting a service—you’re gaining access to a powerhouse of top-tier HR expertise. These professionals have the skills and experience to streamline your processes, ensure rock-solid compliance, and deliver HR services that are modern yet built on proven time-tested foundations.

 Also, remember that the HR domain covers multiple aspects crucial for your business success. *That age-old saying about people being the most valuable company resource holds for a reason.* That’s why having seasoned and knowledgeable HR experts handling pivotal tasks like talent acquisition and employee development is a must. They’re the ones who swiftly provide solutions and necessary platforms, ensuring efficiency without compromising quality.

3. Focus on core business tasks

Research suggests that 60% of businesses experience a boost in employee morale, productivity, and overall success through outsourced HR processes. Why the improvement?

Well, when you outsource HR functions, your in-house teams get to shift their focus to what matters: activities that bring in revenue and core business tasks. Rather than being overwhelmed by the complexities of HR tasks, having skilled professionals handle these vital HR details behind the scenes gives everyone the confidence to focus on their tasks without distraction.

4. Legal complience

In 2023, Australia’s corporate scene underwent notable shifts, especially concerning legal obligations. With the introduction of New Positive Duty compliance and “The Working Future” white paper, crucial changes emerged, demanding careful compliance.

And, precisely circumstances like this underscore the value of outsourcing HR functions. An outsourced HR provider has the expertise and tools to oversee your business operations and ensure alignment with evolving legal mandates.

 Whether navigating assessments for Positive Duty compliance or implementing future-oriented workforce strategies, outsourcing HR functions assures peace of mind. It guarantees that your company remains in step with legal obligations, offering a reliable shield in changing compliance demands.

5. Minimized risks

Besides ensuring compliance with new legal regulations, other equally essential HR issues demand attention. Take, for example, unintentional discrimination or mishandling redundancy processes. These missteps can seriously dent an employer’s reputation and pose significant financial and legal burdens.

However, much like their thorough understanding of new laws, an outsourced HR provider holds expertise in ensuring strict compliance with existing regulations. This way, entrusting HR functions to seasoned professionals shields your business from legal entanglements and risks and helps you foster a positive employer brand.

Outsourcing HR functions: Take your HR strategies to the next level

HR outsourcing offers numerous advantages, serving as a valuable strategy for many companies. It’s a cost-saving move that grants access to top-notch HR expertise. Also, by outsourcing HR functions, businesses can focus on growth while ensuring compliance with legal requirements.

Ready to take your HR strategies to the next level for better results with less hassle?

 Paulette and her team are committed to guiding you through. Our services include but aren’t limited to:

  • Conflict management and communication strategies
  • Legislative compliance advice
  • Employee entitlements
  • Workplace complaints management
  • Termination of employment

Your HR needs matter.

Let’s find, create and execute the best solutions.

Schedule a free discovery call to get started.