HR Outsourcing: Why Is It A Growing Trend?

March 16, 2023

A growing number of organisations are outsourcing their HR services and tapping into the expertise of third party HR consultancies. This rising trend can be attributed to the need for companies to adequately meet their HR business needs. The growth in outsourcing HR services is fuelled by the need to implement impactful HR strategies and by working with strategic partners, organisations can support innovative, upcoming HR models. While this growth is fuelled partly by the larger enterprises who are embarking on strategic partnerships to support future HR practice models and working towards an innovative future of HR, smaller organisations can also follow suit to reap similar benefits and to be ahead of the curve.

The HR department in any organisation has a vital role to ensure the smooth facilitation of its function throughout business activities like recruitment and payroll to performance, training and benefits management. Adapting to a new HR model and incorporating HR outsourcing will bring about beneficial results like improved processes and efficiency. HR technology can be leveraged to reduce business costs and to integrate a seamless, intuitive experience for employees.

Read on to know why you should consider outsourcing some of your HR functions to a HR service provider.

Advantages of HR Outsourcing

1. Tap on HR Technology 

With the latest technology available at your fingertips, this is one of the most important tools to leverage on for business efficiency including the HR function. According to a study, more than half of companies that were surveyed have at least one HR process on cloud. These companies have either core HR management systems or are working towards moving a core HR system to the cloud.

HR technology is a great time saver and improves business performance and efficiency significantly when organisations automate one or more of their HR services. 

2. Business Continuity

When all of your HR services are in-house, even a HR team member leaving may cause a disruption to the flow of business operations. This can be magnified in smaller organisations where a team of HR professionals may not be available. Business operations will suffer during the turnover period and there could be a delay or halt with HR activities. 

HR outsourcing removes this challenging situation as there’s a team of staff available to carry out HR services and activities regardless of what’s going on within the in-house HR team or the organisation.

3. Focus on Core Business

HR outsourcing channels your attention where it’s needed the most — your core business. By handing over the reins of HR services to an external service provider, organisations can internally focus on improving, building and growing. Organisations also spend less time fighting fires, scrambling to keep up with latest HR policies and procedures and getting through mountains of paperwork. Time is better spent on pertinent productive activities to improve business efficiency and grow the business. 

Implement HR Outsourcing for Lasting Results

Ultimately, organisations can get on board their digital transformation journey with various implementations throughout the business, including outsourcing some or all of their HR functions. Besides enabling growth and scalability, HR outsourcing also has the added benefits of levering on the technology that the HR service provider has in order to streamline and improve business processes, efficiency, productivity, and integrate seamless processes to improve employee experiences and reduce costs.

Liberte Consulting is an award-winning HR consultancy and service provider in Singapore with immense expertise in HR and Payroll Outsourcing. With a client-focus at the heart of their approaches, Liberte enables organisations to gain a competitive advantage in the ever-evolving world of human resources and business management. With a current focus on flexible outsourced payroll solutions and services, Liberte helps clients of all sizes achieve better business outcomes with their personalised touch and innovative partnerships. Speak to us to get started with HR outsourcing today.