Companies’ human resources (HR) departments have a lot of responsibilities—from benefits, education and recruiting, to leadership development, change management and everything in between. What if you could focus on the HR activities that directly affect your core business by delegating some tasks to an outside professional?
These days, it’s more important than ever before for companies to strengthen their primary products or services. That is why many company leaders are outsourcing responsibilities that could shift the focus for employees and are better left to experts, anyway. Aside from these reasons, though, here are five benefits of outsourcing your HR activities:
- Save money. Although it costs to hire a human resource vendor, you have to compare it to hiring a full-time HR professional. Consider their salary, benefits (which can be 20-30 percent of their base salary), operating costs and more—it adds up. Plus, HR vendors are already experts in what they do, thus eliminating training time.
- Free up capital for other activities. If you’re a pharmaceutical company, does it make sense to spend capital on activities unrelated to your end business plan, like HR? Outsourcing these responsibilities provides you more to spend on departments crucial to your business, such as research and development.
- Gain new insights and strategies. It’s always refreshing to have an outside source provide feedback on your processes and know you’re getting objective insight. By hiring a third-party HR vendor, you’ll have access to these new insights all the time, which will allow for a stronger HR and overall business strategy.
- Control a complex area. Human resource departments are multi-faceted and require expert knowledge and skills to control such intricate processes. Do you have the necessary manpower and experience? Have confidence that these responsibilities will be done properly by a professional and your company may actually improve HR compliance and accuracy.
- Get that competitive edge. Hiring HR experts means that you’re getting access to world-class capabilities. They can not only complete these responsibilities efficiently (saving you time), but they will also provide you with the best, most up-to-date information and resources possible, thus giving you a head start over competitors.
What if—instead of having 10 percent of you time per week to work on strategic HR initiatives—you could free up 60 percent of your time for these efforts? This would allow you to accomplish the activities that are the backbone of your company’s human resource plan, which could significantly improve results.