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Why Small Businesses Prefer HR Outsourcing?

What is HR Outsourcing?

Human Resources Outsourcing is a practice of contracting out full or limited HR functions to external, third-party service providers. According to Classic Informatics:

Depending on your small business needs, an external HR service provider can cover one, multiple, or all internal Human Resource functions. These tasks can be completed quickly with an HR outsourcing company which would have more time, experienced staff resources and expertise available to complete the task and would cost less than hiring a full time HR manager.

Outsourcing Services Available

  • Employee relations
  • Employee compliance
  • Employee benefits
  • Payroll processing
  • Workers’ comp
  • Insurance services
  • Performance management
  • Recruiting and hiring
  • Disciplinary and professional training
  • Labour law compliance
  • IT and Web Services


Why Small Businesses Prefer  HR Outsourcing:

  • Time spent on HR duties detract from time needed to be spent on other priorities
  • Budget restraints which do not allow for hiring additional staff
  • Lack of internal resources to efficiently hire and manage employees
  • Expertise, HR outsourcing companies provide advice to thousands of different clients, they can draw on a deep level of experience across many different industries, jurisdictions, and areas of concern and prevent future legal or regulatory challenges and employee mismanagement
  • Staying up-to-date with ever changing legislation can be overwhelming and time-consuming, especially for new business owners. An outsourcing firm can help assure legal and regulatory compliance across multiple HR processes
  • Data security is crucial when working with sensitive employee information. To keep this information secure, many HR outsourcing companies use advanced security systems and software encryption
  •  Companies save up to 30% on employment costs by HR outsourcing, by avoiding the expenses of maintaining an in-house HR department, such as training, office space, etc.


According to OnDeck you can complete your outsourcing journey in 4 steps: identify which core outsourcing functions  are required, determine your goals, perform a cost benefit analysis and ensure that legal compliance and security is a priority.

Don’t wait to begin planning your HR Outsourcing needs. Contact for more information or call to request a consultation.

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