Five Common HR Functions That Are Outsourced By Businesses


A lot of small- and medium-sized businesses opt to outsource because of the benefits that come out of outsourcing HR functions.

Although it is not known to some, outsourcing can actually help a lot of businesses as it will give them more time on generating revenue and focusing on strategies and such.

What are Usually Outsourced by Businesses?


This is probably the most common and most-outsourced HR function so far. Because this can be a tedious job that requires a person who has keen eyes for details, businesses often search for help from outsourcing companies.

The benefits that come with outsourcing payroll also rivals with hiring an entire department just to handle one job. This is not advisable for SMEs as they are just starting off and waiting for their businesses to take off even more.

With experts that handle your payroll, you can be sure that your employees will receive their salaries on time that will add to their productivity.

Compliance and Risk Management

There are a lot of provisions that are associated with employment. Labor laws and rules and regulations with compliance in countries are upheld by governments to support the welfare of the employees. Owners are not expected to be in the loop with the updates on the laws, but they can be updated once in a while by their consultants. With this, businesses tend to ensure that they are not risking anything and face penalties.


Another HR function is recruitment wherein a company hires an outsourcing company to look for the right candidates for them. Talent searching, screening, interviewing, background checking, etc. may be really time-consuming for some so they tend to look for help with regard to this function.

Since outsourcing companies are experts on this, they can look for a person who is perfect for the job that needs to be filled, with skill sets that are actually helpful to the company in need.


An HR function that is also outsourced quite often in the world is healthcare, pension, and retirement plans. This is especially true with countries that require their companies to have these benefits for their employees.

An outsourcing company can take care of looking for the programs that their clients need exactly and do all the processes on behalf of them. With the help of an outsourcing company, better terms and deals can actually be obtained as they have connections compared to a firm that does not.


There are also cases wherein employees would need to transfer from one location to another. This kind of job is popular in some countries as their work requires them to stay at one location for a few years or less and then move again. There are a couple of things that are affected by this kind of job that’s why outsourcing companies take care of this for people. Outsourcing companies then assist an employee with house hunting, spousal employment, school enrollment if they have kids, and such things that are affected by moving because of the job. For more information about HR outsourcing please Click here.

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