Benefits of HR Outsourcing

The Benefits of Outsourcing your HR Function:

There are many benefits to companies who choose to outsource their HR function. In the current economic climate, one clear benefit to organisations is the significant reduction in costs and subsequent rise in profit margins. However, cost reduction is just one benefit that may arise as a result of outsourcing your HR function:

  1. Reduced Costs - the cost of an HR manager and the subsequent administration function can be over £60,000 per year. By working with an HR outsource provider, your costs will often be less than half this amount.
  2. Access to considerable amounts of expertise - your outsourced HR provider will have significant amounts of expertise that can be called upon whenever required. Instead of having one HR manager internally, why not have access to many more experts, on a 24 hour basis, for a fraction of the cost?
  3. Increased Efficiency - outsourced HR companies have many years of experience designing and writing company policies, letters and procedures. Use this external resource to draw up, amend and update your existing documents , rather than wasting your valuable internal resources. Not forgetting that the outsource provider will produce these materials in a fraction of the time.
  4. Greater Flexibility - if you have an employee issue, contact your outsourced HR provider who can take this burden off your mind quickly and effectively.
  5. Reduce your risk - outsourcing may be used as a way of reducing risks, legal and financial associated with HR activities.
  6. Fresh overview of the situation - use your outsourced HR provider to provide a strategic overview from outside of the business.
  7. Engagement, Performance Management and Talent Development - by shifting some of your HR department's workload to an outsourced HR provider, you can free up time to focus on other important areas of the business.
  8. Remove Duplication - some companies have designated their line managers as their ‘HR Managers' even if they are not fully trained in this area. This can lead to the company having conflicting stances on certain issues. Organisations can instead move to an outsourced solution with one point of contact, giving consistent and high quality advice.
  9. Free up internal resources to work on a strategic level - by outsourcing, your internal team no longer have to concentrate on administration or fire-fighting, they can focus on working at a more strategic level for the business.

HR Outsourcing Guide - Quick Links

Part 1: HR Outsourcing Guide

Part 2: What are the Benefits of Outsourcing your HR function?

Part 3: The Potential Disadvantages of Outsourcing

Part 4: Do you have a business case for outsourcing your HR function?

Part 5: Why you should choose Park City as your Outsourced HR provider.

Call us on 01206 752100 to find out about the Outsourced HR Services that we can offer your business.