The Benefits Of Outsourcing Human Resources Services

May 21, 2009 - PRLog -- More than ever, companies today are looking for ways to increase their productivity and efficiency - all while cutting or reducing costs. Although this sounds like a tricky proposition, there are a number of effective strategies that can be used to achieved such goals. One of the most increasingly popular ways to reduce overhead, increase profitability and amp up productivity is to outsource major administrative functions to outside agencies; human resources outsourcing is among the top choices for many savvy businesses.

The ever changing world of technology and other types of innovations is, naturally, having a dramatic effect on traditional business models. In the past, it was par for the course to have all sorts of human resources functions performed in-house. It made sense for things like payroll, benefits administration and other HR functions to occur directly on the premises of a business or company; the technological means just did not exist to make outsourcing those types of functions practical.

All of that has changed in recent years, though, as businesses around the world are discovering the many benefits - and savings - of HR outsourcing. As noted by Norman LeClair, the CEO of leading HR outsourcing company Corban OneSource, http://www.corbanone.com  "The vast majority of our clients see an immediate and measurable 30% reduction in overhead. There are other soft cost savings too due to process improvements and technology, but these are outside of the 30% overhead savings." Others around the industry have the data to back up such claims, and their return or repeat customers are another great indicator that these techniques really do work.

Depending on the needs of an individual company, human resources outsourcing can be done to a number of different degrees. For instance, some companies prefer to keep a minimal HR staff on hand, and use an HRO (human resources outsourcing) firm to support them. Others may choose to only have their payroll services or other select functions outsourced. Indeed, benefits administration outsourcing is a very popular choice for many companies, as benefits administration continues to grow more complex by the day.

Perhaps the most common first step that most businesses take is payroll outsourcing. This time consuming - and complicated - process is often sent elsewhere with a big sigh of relief on the part of the managers or owners of the company in question. Such tasks can tie up valuable employee resources; outsourcing them, on the other hand, can free up existing employees, enabling them to take on more critical roles within an organization. Indeed, outsourcing does not have to mean staff reduction; in many cases, organizations simply redefine the roles of those whose burdens are lifted by HR outsourcing firms.

In some cases, companies discover that outsourcing all of their human resources administration is the best option. This is determined in a number of ways, and companies that make the switch are generally rewarded beyond the overhead reduction discussed earlier. Many find that having a separate company available to handle all of their HR needs dramatically improves the quality and the efficiency of many of the functions previously taken care of in house.

Indeed, HR outsourcing can, in many ways, be thought of as adding an entire new group of people to an organization. After all, the staff at an HR outsourcing firm exists solely to help out their clients. Companies enjoy all of the benefits of having a competent, professional team working for them - without all of the hassle that goes with paying a group of full time employees. All of these great elements - and more - ensure that human resources outsourcing will only continue growing in popularity into the foreseeable future.

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Senior HR Consultants Inc. is a group of HR Professionals that average more than 25 years of experience per Consultant. Our primary goal is to help mid-sized companies look at ways their HR Department can become more profitable.