HR Outsourcing Trends
Since the advent of the recent economic recession, a record number of companies have chosen to turn to third-party HR management firms as a way to shrink expenses and be more efficient. According to a Society of Human Resource Management poll, over one-quarter of companies report that the primary reason for outsourcing their HR department is to save money. These outside businesses save organization’s substantial money by managing task such as payroll, 401(k) plans, recruiting, workers’ comp, insurance, and other tasks.
“We have seen a rise in small and medium-sized companies asking how we can streamline their human resource expenses. What interests them is getting the expertise of an entire firm of HR professionals for the cost of one internal human resource manager,” said Kristen Harisay, President of proHR.
Additionally, the expertise brought on through the utilization of HR specialist working alongside a company helps ensure legal compliance thus reducing liability in hiring, employee benefits, and risk management. Also, given that considerable resources are regained when outsources HR management, organizations can focus those resources and effort into business strategy.
“Part of what we do with our HR outsourcing is employ preventative measures to protect personnel and find solutions before problems arise,” Harisay continues, “Business leaders didn’t start in their industry to worry about human resource functions. By repositioning their HR with us, they can concentrate their time on what they do best, providingninnovative products and services to the market.”