Outsourcing HR Tasks in Your Small Business

As businesses grow, the HR function often takes on a more strategic role in the company. An essential part of the business, the importance of the HR function cannot be overlooked. Outsourcing HR tasks often allows HR to focus on the overall mission and strategic direction of the company.

Which Functions to Outsource

Defining your organization’s strategic initiatives and where the HR department fits into those priorities will help you determine which functions to outsource. A company may decide to free up the HR department from process-oriented duties so they can focus on more critical tasks. Some of the top functions to outsource are:

  • Recruiting
  • Payroll
  • Background screening
  • Benefits administration
  • Policy manual and employee handbook development
  • Affirmative action plan development
  • Training

Finding the External Specialists

Once you decide which functions to outsource, research and interview companies that provide the outsourcing services your organization needs. Providing more efficient and effective HR services is the goal, so finding and assembling the right team of partners is essential. Review the proposals carefully, compare the benefits versus the costs and consider the reputation of the firms you may hire.

By outsourcing some of the more routine HR tasks, your organization’s HR department can focus on mission-critical tasks and those that provide the most strategic value.