What are examples of HR outsourcing?

For many businesses, spending time, money, and energy on internal human resources feels unproductive. Menial tasks like payroll and hours tracking eat into time that could be spent on company growth.

Sound familiar? Here’s the good news—small businesses can outsource their HR, in which a firm can tackle many (or all) of your HR responsibilities, leaving you and your team time to focus on the big picture. Let’s review some of the standard functions an outsourced HR firm can provide with examples of each process.

What is meant by HR outsourcing?

Human resource outsourcing refers to a process where an employer transfers responsibilities and risks for HR functions to the external provider which performs these tasks for the company.

Some businesses will outsource their entire HR department, while others will just outsource time-consuming administrative tasks. 

Human resource outsourcing examples

Here are a few HR outsourcing examples to help you visualize what an outsourced firm can do for you: 

Monthly HR support 

Monthly support from an HR service can be critical for a small- to mid-sized business focusing on the foundation and growth of their business. Most small businesses lack the HR expertise necessary to remain compliant. Monthly HR support from an outsourced HR service company can provide the strong foundation your growing business needs to remain compliant, manage daily administration and create a great employee experience. To take it one step further, they can also be the strategic partner a company might need to gain efficiency, provide a strong employee experience, and attract the best talent.

For example, a small business might need outsourced HR assistance to help with their employee file maintenance, I9 compliance, and creating and reviewing company policies and the employee handbook. 

Once that business has a firm foundation, it can then focus on growth. An HR outsourced company can help with benefit strategies, the recruitment process and provide feedback and assistance like writing job decisions. 

Payroll services

Securing that your employees receive their compensation is vital for any business. HR outsourcing firms can assist with payroll services so your most critical assets — your employees — can be paid effectively and on time. Outsourced HR firms can own the payroll function, so you don’t have to. Not only is the employee experience critical, but timeliness and accuracy are essential. Firms can take responsibility for all the necessary paperwork, compliance, and software so you can feel at ease about this step being done correctly and constantly. 

For example, a company that has been established for a few years and only has about two-five employees might use Quickbooks to fulfill their payroll function. However, once the company starts growing to include 10, 15, 20, or more employees, they outsource their payroll to an HR company that calculates time and executes the payroll function successfully and in compliance with regulations. 

Strategic HR Initiatives 

Even though HR focuses a lot on compliance, it can be so much more than that. An excellent outsourced HR firm can elevate your business with strategic initiatives.

An HR outsourced firm can help improve overall organizational performance by integrating your company strategy with your people. With vital HR initiatives, businesses can go beyond their current state and focus on future high-impact opportunities. Here are a few ways that an outsourced HR firm can support these strategic initiatives: 

• Employee Engagement: Employee engagement is crucial for the success and productivity of your organization. An outsourced HR firm can help you discover what is truly important to your team while providing data-inspired solutions that make a real impact and increase employee engagement.
• Compensation Strategy: No successful business makes compensation decisions in the dark. Outsourced firms can help you design a strategy and structure processes to support your company’s goals, while backing up compensation decisions with relevant market data.
• Lifecycle Development: Prepare your team for success by investing in the total development employee lifecycle. From the initial candidate experience through an employee’s farewell. An outstanding outsourced HR firm can help you craft an impactful employee lifecycle. 
• Performance Management: An outsourced HR firm can assess your current program and help you implement a revised one to ensure employees get feedback that allows them to be successful. The company can also get accurate data to evaluate performance and make sound decisions.
• Rewards and Recognition: A thoughtful approach to recognition can make the team feel valued, but the hard part can be knowing where to begin. An outsourced HR firm can provide creative and customized solutions for your organization and your team.

Employee Engagement 

The success and productivity of your organization can hinge on employee engagement. An outsourced HR firm helps you identify what is truly important to your team by providing data-inspired solutions that make a visible impact and increase employee engagement.

An innovative outsourced HR firm will help you create an engaged workforce through creative initiatives that fit into the organization’s culture and values. This is a massive benefit for a growing, successful company. Engaged employees work harder, stay with their employer longer, and ultimately contribute to a higher profit margin. Research indicates that an engaged workforce achieves 17% higher productivity and 21% greater profitability than a non-engaged one.

Go the extra mile, outsource your HR with Milestone

Here’s the bottom line: companies of all shapes and sizes can outsource some or all of their HR functions. A company can benefit from outsourcing with specialized experts in the field, allowing them to grow in areas they couldn’t on their own. 

At Milestone Business Solutions, we strive to make a difference for the business owners who make a difference every day. We believe in true business partnerships that make life easier, provide the best information to make smarter decisions, and help clients build successful companies. We have developed flexible monthly HR outsourcing packages that focus on long-term connections, not long-term contracts.
Experience the difference today with Milestone. Discover our flexible, no-hassle, outsourced HR solutions and how we can work together to fulfill your HR needs.