| There are many small to mid-size companies that | | | | department within the organization. These functions |
| have times of fast growth and turn to human | | | | are assigned to an external entity that has a proven |
| resources, or HR, outsourcing, rather than hiring new | | | | track-record of being able to competently manage |
| HR staff members internally to deal with their growth | | | | those particular functions. When it comes to human |
| spurt. HR outsourcing can be a very effective way of | | | | resources outsourcing, the primary function relates to |
| meeting the demands of strategic growth and | | | | the hiring and firing of employees, as well as managing |
| expansion of a business and can cut the overall costs | | | | payroll-related issues, benefits management, tracking |
| by allowing the current and experienced staff to focus | | | | vacation and sick time accrual and usage, and other |
| their expertise on the things that they are best and | | | | common HR functions. |
| most productive at doing. | | | | However, there are some companies that take |
| In this way, the permanent human resources staff, and | | | | particular pride in their human resources department |
| other management members who are often drawn | | | | and prefer to have on-site HR staff that knows and |
| into the hiring process when the HR department is | | | | interacts with the employees. In these kinds of |
| understaffed, are able to pursue and accomplish those | | | | corporate environments, HR outsourcing can still be |
| tasks that will result in the best profitability for the | | | | utilized but is generally only used for outsourcing |
| business overall. A business that takes advantage of | | | | services that do not involve direct employee contact. |
| human resources outsourcing assigns the critical | | | | This still allows the human resources department to be |
| management of all functions related to HR | | | | very "connected" to the employees, while also |
| requirements of the company to a third-party provider | | | | providing additional support when there are periods of |
| that is a specialist in the field of human resources | | | | increased recruitment. |
| management. | | | | In many instances, companies that need to hire large |
| The idea of using outsourced services was first | | | | numbers of seasonal employees with also turn to |
| introduced, or at least popularized during the 1980's, | | | | human resources outsourcing to help fill the gap and to |
| when many companies experienced an economic | | | | keep the regular HR staff from becoming |
| boom as a result of a healthy economy. Outsourcing | | | | overwhelmed. After the seasonal rush is over, the HR |
| services gave these companies a good way to meet | | | | outsourced projects for the company can be |
| increased demands on their internal infrastructure | | | | canceled and business can simply return to normal |
| when experiencing growth, as these companies | | | | operating procedures. |
| experienced the growth and had to change and adapt. | | | | Anytime that a business experiences significant |
| HR outsourcing was often one of the main types of | | | | growth, especially fast growth, the HR department is |
| services that was easily contracted to an outside | | | | on the front lines and can become overwhelmed fairly |
| company. | | | | quickly. Because HR plays such a pivotal role as a |
| Outsourced projects and services present the | | | | company grows, using HR outsourcing for a portion of |
| opportunity for a business to delegate specific tasks or | | | | the human resources requirements of the business |
| functions that are associated with a particular | | | | makes a lot of sense from a management standpoint. |