Many businesses think long and hard before they decide to outsource critical business functions. This is especially true in the case of human resources. Workforce management has never been more important, as more firms have recognized that talent is the ultimate competitive advantage. To make an informed and well-grounded decision, every organization must evaluate the benefits of outsourcing to determine if it right for them.
Here are four advantages of outsourcing your company’s human resource functions:
- Tap into Expertise
Expertise is perhaps the primary reason to look for an external HR solution. In particular, small to mid-sized companies, may lack sufficient knowledge of tax law, labor law, federal regulatory structures and the insurance market and other employee benefits.
Gaps in such knowledge can result in businesses unwittingly violating state or federal statutes (and paying a significant price in enforcement), or getting a poor deal in the insurance market. Moreover, the benefits of expertise extend to the hiring and subsequent development of workers.
- Access Extensive Networks
Outside recruiting specialists are able to tap into their extensive networks to find a much larger pool of potential hires. Rather than passively waiting for job seekers to apply, a skilled recruiter can find a much larger pool of talented workers who may not be pursuing a new career, but may be open to recruitment. This edge in talent procurement can create a long-term competitive advantage for organizations.
- Reduce Costs
Cost is another key factor. Although it may not always be less expensive to outsource, using an external HR solution can keep costs down in many cases. For example, smaller firms that experience rapid growth may not be able to scale their HR functions quickly enough, or without spending a large amount of capital.
- More Time to Focus on Priorities
Finally, outsourcing HR allows organizations to narrow their focus and concentrate on other core business functions. Allocating more resources in key, high value-added areas can help firms increase their competitiveness.
Businesses should also keep in mind that a blended approach (hiring an outside firm to handle certain HR tasks, such as recruiting) can also be employed. This often provides the best of both worlds, as firms can bring in outside experts to fill in gaps and provide expertise. Today, it’s estimated that 85-percent of firms outsource at least some of their HR tasks.
Outsourcing your HR functions provides an array of potential benefits. It is important to evaluate the advantages of an internal and external approach to HR before making a decision.
Contact us at Duffy Group, Inc., to learn more about maximizing your recruitment resources.