If your company is considering outsourcing human resources – either one or many functions – you are part of a growing trend. before HRM was less complex. There was hiring, terminating and payroll, since the late 1970s, HR has grown increasingly more challenging.
Forget spending time with employees or developing engagement initiatives – benefits administration and compliance issues will eat up all of your time. These are good reasons to consider outsourcing human resources. But if you wonder why other companies are outsourcing human resources, read on!
The Society for Human Resources Management (SHRM) conducted a survey of hundreds of companies about their outsourcing habits and here’s what they found are the six most common reasons that companies outsource:
- 26% of companies outsource to save money – this isn’t terribly surprising – what company doesn’t want to pinch pennies where they can?
- 23% of companies outsource to focus on strategy – spreading yourself too thin with all of the administrative tasks doesn’t leave a lot of time for planning, so this makes sense.
- 22% of companies outsource to improve compliance – it is increasingly challenging to stay in compliance and increasingly risky to not meet requirements so outsourcing this risk is beyond smart
- 18% of companies outsource to improve accuracy – if you’ve got too much on your plate (and who doesn’t?) accuracy may fall by the wayside, so this also makes sense.
- 18% of companies outsource due to a lack of experience in-house – knowing your weaknesses is as important as knowing your strengths, so handing off a task you know you can’t handle properly to someone with expertise is a great business decision.
- 18% of companies outsource to take advantage of technological advances – with big data worth tapping into, but costly technology needed to really delve into strategic analytics, outsourcing can offer solutions without a significant investment.
Whatever the reason may be that your company is willing to outsource HRM, PCG Is here to give you required professional support