Top Reasons to Outsource Human Resources

Updated: Oct 22, 2020

From IT to customer service, it's not unheard of for business owners to outsource certain components of their organization. In fact, a 2018 survey showed that most companies at least outsource some part of their payroll function. But, did you know that business owners also outsource their human resources (HR) responsibilities?


Here are several benefits to moving your HR functions to an outside company.


1. Avoid Compliance Issues and Penalty Fees

Business owners know that there are many rules related to HR. And with constant legal changes and new additions, it can be difficult to remain current. Failure to follow these legislations, laws, and standards can lead to financial penalties.


The certified HR professionals found within an HR outsourcing organization can supply business owners with up-to-date knowledge. This increased expertise in workforce issues can decrease errors and, in return, help avoid costly penalty fees.


2. Manage Claims, Policies, and Procedures

Business owners that choose to outsource HR services will no longer have to tackle claims, policies, and procedures on their own. The experts within these organizations can provide advice and handle the processing of unemployment claims. They can also help with employee discipline issues.


HR outsourcing organizations also assist with employee handbooks, whether a business needs to write a handbook from scratch, or make updates. They can do the same for policy and procedure manuals too.


3. Alleviate Administrative Burdens

Many business owners can become overwhelmed by the day-to-day responsibilities of their organization. An HR outsourcing service can provide assistance with a variety of administrative tasks, including employee onboarding and payroll functions, thus freeing up time for owners and managers. Some of these services include:

  • Collecting employee work hours

  • Sending employee paychecks

  • Conducting employee climate and salary surveys

  • Setting executive compensation

  • Controlling payroll tax

  • Creating employee training programs

  • Managing employee benefits open enrollment

These services provide cost savings and improve employee satisfaction.


4. Enhance Recruitment Efforts

HR outsourcing organizations can help write job descriptions and create job postings for business owners. Thanks to years of experience, the HR professionals at these organizations understand how to properly craft and distribute these descriptions, structure competitive salaries, conduct background checks, and more.


These recruitment services come custom to the business itself. The HR professionals will first look at an organization’s structure, culture, and value systems. Armed with this information, they can tailor position postings for recruitment. This leads to employees that fit best within a specific role and business.

Would Your Company Benefit from Outsourcing HR Services?

Outsourcing HR functions can improve your return on investment by saving your business time and money. SynchronyHR brings experienced HR professionals to the table.


You have a lot on your plate, and managing a variety of administrative functions can be tedious and time-consuming. With SynchronyHR as your partner, you can rely on us to assist with HR, workers' compensation, risk, payroll administration, employee benefits, and more.


Your business is unique, yet our professionals have seen it all. We have become experts at fashioning cost-effective management solutions tailored to a variety of business situations. Contact us today to ask questions and learn more about our services.

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