What HR Functions Can Your Business Outsource to Help You Grow?

Do you ever feel like you have too much to do?

No, it’s not a trick question. As an HR manager, your responsibilities cover a lot of ground. And there are only so many hours in a day. Your primary focus must be on mission-critical needs and strategies.

It’s not surprising that an increasing number of companies are outsourcing HR functions that, while being vitally important to company operations, can be more effectively handled by a competent business partner.

A Growing Trend

Of Top 500 companies worldwide, approximately half use outsourcing. Why? Because it makes good business sense.

The Society for Human Resources Management recently surveyed hundreds of businesses regarding their outsourcing patterns. SHRM found the most common reasons for outsourcing included:

  • To save money (26 percent of companies surveyed)
  • To focus on strategy and remove administrative busy work from their plates (23 percent)
  • To increase compliance (22 percent)
  • To improve accuracy, which can falter if you have too much to handle (18 percent)
  • To take advantage of technological advances without making a budget-threatening financial investment (18 percent)
  • Due to a lack of specialized experience in house (18 percent)

And, the HR functions most commonly outsourced were:

  • 401(k) administration (by 84 percent of companies surveyed)
  • Employee assistance and counseling (84 percent)
  • Retirement planning (74 percent)
  • Pension administration (73 percent)
  • Temporary staffing (72 percent)
  • Background checks (68 percent)
  • Training and management development (57 percent)
  • Executive development and coaching (54 percent)
  • Employee benefits administration (53 percent)
  • Payroll (49 percent)

Consider Which Functions to Outsource

When deciding which HR functions to keep in-house and which to outsource, be mission driven. If a function is important to business operations but not central to your core HR objectives, then source it out. For example, tax compliance requires constant attention to stay up to date on regulations and legal decisions, but most HR departments don’t have this kind of advanced expertise on staff. And even if they do, it can quickly devour vast amounts of time. Plus, outsourcing provides added insurance against financial penalties and negative publicity resulting from compliance errors.

What Can Lyons HR Do For You?

Outsourcing to Lyons HR will free up valuable staff time and help ensure your overall talent management function is handled professionally and cost-effectively. We’re an ESAC-accredited professional employer organization (PEO), handling benefits, risk management, workers’ comp, payroll and tax compliance. Contact us today to learn more about what we can do for you.


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