Pros and Cons of Outsourcing Human Resources

In January 22, 2016
On News
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Despite the overwhelming growth, use of, and acceptance of professional payroll and human resource companies over the past decade, there are still businesses that believe that keeping their HR department “in house” is preferable to outsourcing it. Let’s take a closer look at the benefits that a company receives by maintaining a traditional HR department versus the drawbacks.

Most companies will cite two major reasons why they keep ┬áhuman resources. The first reason is cost control. But does a business actually save money when they have to maintain a whole separate department dedicated only to payroll and HR issues? With a closer look at the issue, the answer seems to be “no.” Almost half of all companies surveyed list “saving money” as the number one reason that they outsourced, and it only makes sense. How can any traditional HR department compete price-wise with a payroll company that is stream-lined and specialized to only deal with HR issues? By comparison, the old model of in-house HR is clumsy and inefficient.

The second reason cited by companies for keeping a human resource department has to do with control over timing, processes, and the ability to customize benefits and reporting. However, considering that the payroll companies of today are able to offer customized service to each individual client along with real-time processing, these old arguments against outsourcing are mostly nullified.

Consider a payroll operation like Precise Payroll. They actually offer more HR services to an employer than most HR departments can handle. They can do payroll, hiring, ensure compliance with worker and tax law, maintain employee benefit programs, handle background checks, workman’s comp issues, and so much more. And because this is their specialty, they can do this cheaper and faster than most in-house programs. If you operate a business, small or large, it is definitely worth your time to investigate a company like Precise Payroll — it might just give your organization the edge you need to succeed in today’s competitive environment.

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