Creating a business case for HR outsourcing is an important initial step for any business. A Company needs to ask themselves why do they need a HR function.
So what aspects of HR could you outsource?
Well there are a number of potential benefits associated with HR outsourcing.
When a Company decides its time to outsource a number of potential benefits are frequently cited.
Commonly mentioned benefits include:
- reduced costs
- increased efficiency
- access to improved HR IT systems without capital outlay
- improved people management information
- access to HR expertise that is not available internally
- increased flexibility and speed of response to HR problems
- ability to support or fit well with an overall strategy (for example where the organisation is outsourcing a number of its support functions, of which HR is just one part)
- reduced risk, as it is possible to scale up and down more efficiently
- capacity for HR to operate more strategically.