HR Outsourcing: How Can It Work?

Human resource strategy, also referred to as people strategy, is just as important as an organization’s financial, operational, and business development strategies, because a company needs people to achieve its business goals.

Human resources are an integral part of any business, but many times it is one function that falls by the wayside The problem in addressing an organization’s human resource needs often lies in the lack of time, resources or expertise within a company. Many organizations do not have the resources to dedicate a staff member to the HR function, and require employees to assume the tasks. As an add-on, that limits time that can be spent focusing on HR.

Luckily there is a solution -- HR outsourcing. HR outsourcing can provide the human resources support and expertise that organizations need to help drive business.According to the Society for Human Resource Management (SHRM), companies outsource HR in order:

• to save money -- realizing cost savings through efficiency
  
• to focus on strategy -- aligning people with mission, vision, values,
  
• to improve compliance -- reducing risks through expertise; and 
  
• because there is no in-house HR experience -- acquiring an expert to lead the way. 
  

HR outsourcing can also help organizations improve accuracy, increasing quality by lessening workloads and by gaining technology advances that they may not have otherwise been able to afford. All can help the organization drive a better bottom-line.

The most common outsourced HR functions identified by SHRM include both transactional and strategic tasks such as payroll administration, employee benefit administration, training and 

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