HR & Payroll Outsourcing

Outsourcing Recruitment

HR & Payroll Outsourcing

Is it right for you?

Most companies assume that they can handle HR and payroll services themselves, but this is a major time management concern for the business owner. Not only do businesses face the burden of managing staff, wage costs and benefits packages – they must deal with collection issues, legislative compliance and reporting requirements. Many companies feel overwhelmed by growing legal obligations pertaining to their hiring practices and inconsistent staffing needs. A quick review of your current HR staff and you will likely find they are fully tasked with existing employee support and keeping up with training, counseling, disability processing, payroll issues, legal disputes, terminations, and other active employee support.


Many business owners feel that they can handle the hiring process on their own. But this means that businesses will not have access to a dedicated HR professional who can provide services such as: recruiting, background checks and orientations. The hiring process is not cheap; 3rd party hiring services costs add up quickly. Doing it yourself means negative impact on productivity by pulling employees of their daily tasks to support hiring activities. Businesses will also need to invest money in creating a formal hiring process and space in their company dedicated to the process. The best hiring practices are done face to face, which could even mean costly travel expenses if the search is for a candidate outside of your local area. Another problem with managing the hiring process yourself is inconsistent guidelines across different managers or departments. Each manager usually has his/her own ways of choosing new hires, creating inconsistency from one position to another in terms of skill requirements and personality traits demanded by each role within your company. You may be missing out on great opportunities to streamline your HR & Payroll process which typically leads to reduced costs and higher retention of new employees.

One solution for HR & Payroll Management is to outsource these processes to a firm that specializes in these areas. If you find the right outsourced service company, they can help you improve your hiring process while also relieving some of the stress from your current team. According to SHRM, the average time to recruit, interview, assess and onboard the average employee is 18-20 dedicated hours. Inconsistent hiring practices can increase employee churn, increasing the hours spent on filling open positions. Outsourced Human Resources and Payroll Services are often much more efficient than manage-owned HR and payroll departments; self-managed HR departments have a lot on their plates, with other responsibilities like employee training, benefits setup, onboarding new employees, HR reporting etc.

Different HR outsourcing firms will specialize in different areas: entry level through senior executives is a common specialization in many HR companies. Usually, any outsourced HR service has a generalist which handles all kind of human resource solutions. HR firms specialize in HR outsourcing, payroll outsourcing, HR training and HR consulting.

Employee Benefits Outsourcing – Benefits administration has traditionally involved a lot of paperwork and employee tracking. So, another area that an HR company can excel at is benefits administration for you or your employees, like providing general benefits for your staff or helping to setup life insurance if it’s needed by the client. For example, workman’s comp insurance may be cost prohibitive for your organization, but by allowing an outsourced HR team to provide this benefit, not only do you keep costs down, but you are provided increased protection against workplace injury claims.

Companies that outsource their payroll function also use payroll outsourcing companies to manage benefits they offer to their employees. Payroll services usually don’t have access to confidential information about medical or other kinds of sensitive issues so there isn’t much need for huge security concern with outsourced payroll companies. And when there are tax compliance issues, outsourced payroll firm will typically pay for themselves by taking the lead on addressing and settling these disputes.

Want to learn more about how your company can benefit from outsourcing HR Support? Request more info here. We are your office staffing agency!