The 5 Best HR Outsourcing Services To Help Your Business Grow

Many small businesses start with the bare minimum. As their operations grow, they still may not have the resources to fill vital roles. A limited budget is where HR outsourcing services come into play.


Outsourcing has become a popular cost-saving measure. You get the experience and knowledge of trained professionals without the cost of employing full-time personnel. Hiring an HR manager can range from $40K to $90K in annual salaries, plus the cost of benefits.

An HR outsourcing company employs the talent that handles duties for multiple companies. Contracting for the services will only cost a fraction of that amount. Outsourcing, in turn, makes the service a win/win solution for everyone and improves their productivity and efficiency.

Let’s check out some of the top human resources functions you can outsource.

Why HR Outsourcing Services Are In Demand

HR Outsourcing services are third-party services that assume all or a portion of a business’s human resources duties. It is growing in demand and popularity as businesses streamline work processes and reduce budget costs.

They are in demand because they provide businesses with a wide range of options.

Companies have individual needs and budgetary limits. When outsourcing HR functions, some tasks are more critical than others. The company can choose from an a la carte menu to control costs.

1. HR Management

Human Resources Management addresses the overall health of the company’s hiring practices and the workplace as a whole. Here are the key strategies you want to cover when you contract HR outsourcing.

  • Recruitment
  • Hiring
  • Training
  • Value to the business
  • Success
  • Rewards


Recruitment comes in many forms. Techniques can include pulling applicants from job websites, hosting job fairs, and resume screening tools. With HR management outsourcing, you’ll have extended reach for bringing in the best talent.


The HR outsourcing company with interview applicants and perform background checks. You’ll give the final approval on new hires.


HR management services can also include training. Hiring a full-time trainer isn’t cost-effective if you aren’t hiring employees regularly. The representative can come in on an as-needed basis to offer on-site training.

Value to the Business

Adding value to your business is another asset that comes with outsourcing. New hires and regular employees have a professional representative to answer questions and assist with their HR-related needs.


HR plays a big part in the success of your business and your employee’s job performance. They can answer questions regarding benefits. Handle paperwork, and ensure employees have the tools they need to succeed.


The overall reward to hiring a professional HR management company is a well-managed front office. Employees have a direct contact person concerning payroll, benefits, training, and other workplace questions.

When employees are happy and their needs are being met, it makes for a productive workplace.


2. Compensation And Benefits Administration

A vital HR outsourcing service is compensation and benefits administration. Some laws impact compensation and benefits. If you aren’t versed on what’s covered, you can end up with penalties from state and federal officials.


Compensation is more than an hourly wage. Rules govern how much employers must pay their employees and establish a minimum wage. If you want to make a position exempt or salaried, there are new guidelines on who is covered.

Your HR outsourcing company has experienced professionals trained in putting together competitive packages based on industry standards.


Sometimes benefits are more important than salary. For some employees having access to health insurance, paid time off (PTO), and tuition reimbursement is the deciding factors when accepting a position.

The compensation and benefits administrator can negotiate prices because they have established vendor relationships.

3. Payroll Management

Payroll management is a function of HR outsourcing. You have the option of using someone to do the payroll or using payroll software. Payroll services are often based on the number of employees.

Choosing a payroll service that also handles tax filings is a benefit that shouldn’t get overlooked. Your employees get the option of paper checks or direct payroll. You get the tools you need to process your payroll on schedule with the service.

Additional options to include when researching services is whether the company tracks employment applications and offers to onboard new hires. It’s beneficial to have all aspects of payroll handled by one provider.

4. Compliance And Risk Management

The compliance and risk management level a company requires depends heavily on the type of business. Local, state, and federal regulations play a big part in business operations. Outsourcing compliance and risk management assure your business is compliant with all laws.

You’ll want a provider knowledgeable in the differences between the two.

Compliance Management

Compliance is the process of assuring there is ongoing monitoring of your systems. Privacy of consumer data is a huge requirement. Companies that deal with chemicals will have another standard for compliance.

Risk Management

When it comes to risk management, here are five basic methods to test your exposure:

  • Avoidance
  • Loss prevention
  • Retention
  • Sharing
  • Transferring

For every industry, there are standards to achieve in each area. Having a strong risk management strategy helps avoid compliance issues.


5. Training And Development

As your business grows, training and development become more important. Without an onsite HR department, you’ll need someone to address the needs of new hires and those going into new roles.

Human Resources functions ensure the right employees are in the right roles. They also schedule training. By outsourcing these duties, your employees are trained by professionals.

The tools they’ll receive are current and apply the latest techniques and standards.

Get The Right HR Solutions For Your Business

HR outsourcing services are a great asset for small and medium-sized businesses. Choosing the right company means finding a provider with expertise in your industry.

If you’re wondering how affordable is human resources outsourcing is in 2022, we have you covered. Click here to get a quote.


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