Outsource Your Human Resources Functions In 5 Easy Steps

Apr 9, 2024 | Blog

From employee satisfaction to saving time and costs, there are many reasons why businesses across the world choose to outsource HR. After all, managing a workforce involves numerous time-consuming tasks, such as conducting interviews, onboarding and training employees, payroll processing, and, most importantly, tax filing.

Regardless of why you outsource HR, finding the right HR outsourcing solution for your business demands some legwork. After all, you need a reliable HR outsourcing partner who you can work with for years to come, and this will take some serious research and careful consideration.

However, finding the perfect HR outsourcing partner doesn’t have to be challenging. Here are 5 easy steps to outsource HR to the perfect third-party provider.

#1 – Decide What HR Tasks Should Be Outsourced

The first step to outsourcing your HR is deciding what tasks to outsource.

Human resources involves a wide array of tasks, including recruitment, training, payroll processing, employee benefits, and more. After all, there is a reason why numerous businesses choose to outsource rather than hire an internal HR team to handle these tasks.

Depending on your organizational needs, you can choose to have the HR outsourcing provider handle some or all of your HR tasks. If you’re a start-up, consider outsourcing these common tasks:

Payroll processing
Employee benefits administration
HR systems and technology integration
HR compliance and risk management
Performance management
HR policy development and implementation

If you already have an HR department, try answering the following questions, and it will help you decide the business functions for which you should consider outsourcing.

Is your team handling all the HR processes well?
Do you think there is a specific area where they require additional training?
Would outsourcing help address the challenges in these areas rather than training or hiring?
Can your team maintain legal compliance?
Would it be more cost-effective to handle HR in-house compared to outsourcing it?

#2 – Make A List Of HR Outsourcing Service Providers

Now that you know what HR tasks you’d like to outsource, it is time to figure out potential HR providers and narrow down the right partner.

Consider asking other businesses in your industry or professionals from your network about reliable HR outsourcing providers they have worked with or know, and make a list of all potential options. Then assess each provider based on their;

Experience;
Track record;
Customization opportunities;
Services offered;
Compatibility with your current business processes,
As well as pricing structure.

#3 – Narrow Down On The Right HR Outsourcing Provider

After researching each provider, consider reaching out to the top three businesses for a consultation. This will give you a bigger picture of what it would be like to partner with them. It will also be an opportunity for you to ask any questions or have your concerns addressed by the provider.

Here are a few potential questions you might want to consider asking.

Will they assign a dedicated accounts manager to answer your queries and keep you updated throughout the collaboration?
How will the provider ensure data security?
What measures do they take to ensure compliance?
What technology do they use?

#4 – Partner With The HR Outsourcing Service Provider

Once you find the right partner, make the collaboration official by signing a contract. But before you do so, you should engage in a deep consultation session where you let the provider know what your expectations are so everyone involved will be on the same page before the outsourcing starts.

At this point, you will also want to talk to the provider about the communication channels you prefer and ask for assistance with integrations, if necessary.

#5 – Review And Modify When Necessary

The outsourcing process doesn’t end with you entering a contract with a third-party provider. After implementation, you should constantly review how the HR functions are being carried out and ask for modifications or changes if you find something isn’t working the way you want it to.

It is also a good idea to monitor performance indicators, as this will help you clearly distinguish between what’s working in favor of your business and what’s not. Key performance indicators include:

Cost savings
On-time payroll processing
Accuracy in HR tasks
Employee satisfaction and engagement
Compliance with regulations

Outsource Your HR To Edge Global Outsourcing Today!

HR outsourcing brings about a wide array of benefits for your business, ranging from cost savings to compliance with local regulations, employee satisfaction, and improved operational efficiency. Typically, the time it takes to outsource your HR functions will vary depending on factors such as the size of your workforce, the tasks you wish to outsource, etc.

At Edge, our HR outsourcing solutions are designed to lessen the burden of administrative tasks on your shoulders. Our dedicated team of experts possesses numerous years of combined experience in handling HR operations. By partnering with us, you can not only save more time but improve your business bottom line significantly.