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Know When To Leverage HR Outsourcing

When To Leverage The Power Of HR Outsourcing

Many human resource professionals overlook the benefits offered by an HR outsourcing partnership. They instantly assume that since they themselves offer a wide range of human resource services, HR outsourcing would add an extra, unnecessary layer to their existing operational model. However, as an HR manager, director, or Vice President, your time is often best spent focusing on higher-level initiatives and objectives. A professional partnership can grant you more time to do just that.

Breaking Down HR Levels For Outsourcing Opportunities

As a leader in your human resources department, you probably already have a solid understanding on some of the functions that you add most value to…and which tasks can be delegated to an outside partner. Breaking down the different components of your role can give you further insight on what you should keep under your jurisdiction and what can be sent to your HR outsourcing provider. Three key categories in any HR department include strategic, functional and administrative.

Business owners often opt to keep strategic and functional operations as internal responsibilities, for the following reasons:


Think of your HR strategic initiatives as high-end tasks and goals. These objectives go beyond focusing on where the business currently operates; instead, it prioritizes planning for future growth and success. Under your strategic task umbrella you will find goals relating to critical components such as recruiting, retention, succession planning, and onboarding. Your strategic vision will also include vital operations such as audits and compliance issues as well as HR data storage, analysis, and sharing. Due to the critical nature of strategic initiatives, many HR professionals prefer to manage these roles rather than outsourcing them to a partner.


Functional HR tasks, while still important, have a lower impact on overall business operations when compared to strategic initiatives. Functional items may include special projects, generalist responsibilities and developing, implementing and streamlining processes. These mid-level tasks do offer some opportunity for outsourcing; however, many executive human resource professional opt to keep these tasks for an internal employee as a means to develop existing staff members for future succession.

Unlike functional and strategic roles, administrative tasks often represent an excellent opportunity for outsourced resources:


Administrative responsibilities often represent entry-level initiatives that have a lower overall impact on operations. Some administrative tasks can include data entry such as payroll, benefits and employee statistics. It can also encompass tactical requirements such as distributing employee handbooks and processing workers compensation. Many experienced human resource executives recognize that the administrative category represents an ideal place to bring in a reputable HR outsourcing partner.

Benefits Of HR Outsourcing On Administrative Tasks

Opting to outsource your administrative HR tasks yields a significant range of benefits. You and your internal team will instantly see an upswing in free time, affording you an increase in bandwidth to focus on higher-end goals and initiatives. Partnering with an outsourcing team also enhances compliance and objectivity throughout your organization. Most importantly, using an outsourced HR professional allows you to continue to develop the big picture of your business, while your chosen partner will keep sweating the small stuff on your behalf.

Contact The Payroll Company today to learn more about our outsourced HR capabilities and services.