Why Outsource HR?

OUTsourcing. Why is it all the rage?

Do you gain a lot? Lose control?
Save money? Obtain tax benefits? Reduce legal risk?

So many questions and all of them very important to understand!

Before you can decide whether to outsource a service or product it always benefits you to understand the subject from a historical perspective.

Outsourcing is nothing new… we have all heard the * buzz * word for the last 20+ years.

Outsourcing is the final evolution of an efficient 21st century lean and profitable business model.

Outsourcing allows a company to increase their flexibility and creativity with a laser focused strategy on their core business. The keys to good outsourcing:

  1. What am I good at? Focus on your product or service, be the expert in your field… does this mean you’re an expert at everything? What do I know… that I don’t know?
  2. Identify the services you need that you don’t necessarily want to micromanage on a day to day basis. Outsourcing can be a smorgasbord or ala carte by needs.
  3. Figure out the requirements of how outsourcing fills a critical role in your current company today. How will it help with your future growth in size and revenue?
  4. Create a program in which outsourcing minimizes risk to your core functions, and helps the business owner and management sleep better at night.
  5. Ability to access senior Fortune 500 level experience and wisdom that smaller companies usually never get access to, at a fraction of the cost.
  6. Benefit from an outside third party perspective that can be more objective in your current and growth business strategies.
  7. Identify how outsourcing increases productivity & efficiency – while $aving money!

Perhaps you’ve heard of other companies that successfully outsource their Human Resource Departments. It seems great for them, but you’re wondering what possible good reason you’d have to do the same for your company.


1. Reduced overhead costs

For starters, outsourcing may just save you money; lots of money. We all want the best that money can buy, but that doesn’t mean we can all afford it! Can you afford an experienced enough HR professional full time with salary, benefits and perks who not only can handle the day to day, but also the daily changing and ever more complicated federal, state, local employment laws and compliance-related HR issues, such as: Worker’s Compensation injuries and claims; Sexual Harassment; Medical Marijuana; Parental leave; State and Federal Grant money for training; Social media and mobile device policies; FMLA

2. Expertise

Each one of these areas is a time bomb waiting to blow up in your business. Any owner or manager who has been in this game long enough has at least one – if not many – horror stories of the zig when they should have zagged that cost them a lawsuit or worse. It’s hard to be on top of it all, when you can only afford an entry level HR Assistant in your budget, but have the daily need of executive level expertise and training. Entry level salaries get you entry level skills and knowledge.

3. Compliance / efficiencies

Ensure your entire business is compliant in ALL areas and up-to-date where you need to be to avoid costly litigation. Outsourcing may just be a lifesaver for your company.

Really, can you honestly say you’re sure you’re compliant and up-to-date in every single area you’re required to be by law?

Do you know the rules you should be following? That’s a chance no business in today’s world wants to chance. It’s actually easy to make sure, protect yourself and do it for less than you think.

4. Employee satisfaction

Did you know that employees that are happy, fairly compensated and feel appreciated work harder and stay with their employer longer? Are your current policies and procedures making your workforce miserable and inadvertently killing your business? Is your turnover rate higher than you would like? Do you find that you are spending more then you want to on retraining for the same positions? HR when done right can help minimize and correct these common inefficiencies that cost your business every day.


There are some common excuses why many company executives don’t think they need to outsource their Human Resources functions, yet they may be gravely misguided. See if any of these sound familiar to you:

  1. I am a small company and I do that myself. I am too small to need “all that stuff.”
  2. I have a person for that and she has hired some pretty decent staff members.
  3. I cannot afford to hire a company to do that for me.
  4. I don’t know how to get started and how to incorporate an outsourced HR Consulting Firm into my present set-up or I don’t like change, so I am reluctant to change what we are already doing.

Adding an outsourced HR Department to your existing company structure is seamless and requires little time and energy on your part. This is what we do, and while it might be your first time… don’t worry it’s definitely not ours. Adding compliance, handbooks, policies and procedures and streamlining your HR not only creates peace of mind… but creates efficiency and greater productivity, happier employees and less turnover.

Well run HR is the cornerstone of growing any successful company and making sure it’s stable and protected to be here in the future.


Have a specific question or concern about Human Resources or
Human Resources Outsourcing? Contact McCloskey Partners for the answers.