Why Would You Outsource Your HR Management?

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HR Management outsourcing is becoming increasingly popular for businesses, thanks to the varied range of benefits it offers. We take a look at some of the primary drivers for outsourcing this critical function.

Access to specialist skills

For small businesses, in particular, it is difficult to have the full breadth of specialist skills and experiences within an in-house team. Even in larger teams, the increasingly strategic nature of HR means that advanced and niche skillsets are required, which generally require using outsourced and specialist help.


Examples of growth and focus areas that often benefit from specialised consultancy or outsourced HR support include employer branding, database and talent management, organisational behaviour and culture development, strategic resourcing and recruitment strategy and change programmes. These include TUPE transfers, company mergers and acquisitions and site closures and redundancy programmes, or conversely, large-scale recruitment schemes, often for site openings or temporary campaigns and activity ramp-ups.

By outsourcing this work, your business can rapidly access the right levels and scale of resource in the most flexible way.

As well as providing delivery support in these areas, the right outsourced partners can provide access to best practice thinking and new models of work and HR practice. They can advise at the most senior levels and bring the necessary gravitas and knowledge that decision-makers need. HR service providers can also assist with linked technical projects, such as a move to cloud based CRM and talent database systems or the development of online channels for a social media recruitment campaign. They can also train up internal HR to run the new work, or take on newly created processes, to ensure quality delivery and control going forwards into the business.

Another reason for HR outsourcing is the ability to improve attrition and absence, by providing enhanced MI through external support, to aid management decision making and to highlight concern areas. This improves managerial ownership and provides support for any resulting performance management processes. In fact, better and more advanced MI is a definite benefit of outsourced HR services, thanks to the provision of bespoke and in-depth custom reports to meet diverse business needs. Additionally, skilled HR consultants can interpret the results effectively and provide commentary and guidance for acting on them.

Cost advantages

Finally, there is the cost advantage that comes from flexibly using an outsourced HR provision when required, rather than taking on the overheads of a permanent and large in-house HR team, with the recruitment and running costs that come from hiring permanent staff. This will be a critical factor for many businesses that increasingly wish to access cutting edge talent, when they need it and at the right price.

For each business, a different HR service provider will be needed and each will work according to the business’s needs and the outsourcer’s service provision. Businesses should undertake a full competitive tendering process to ensure that they make the right decision and secure an on-going partner to help with their strategic HR development and tactical delivery alike.

Jane Dokes writes regularly on HR and business topics for a variety of business publications and websites. An advocate of HR outsourcing, Jane has leveraged her small business activity through outsourcing critical corporate functions.


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