Outsourcing HR services to a trustworthy partner enables you to tap into a vast pool of new opportunities with minimal financial commitments. But staying on the same page with the employees and industry demands might sound challenging because of constant updates, right? We are here to share current trends in HR outsourcing to make the task easier for you.

Make sure to keep in mind these trends to be in the loop and grow stronger in 2021.

What is HR Outsourcing?

Before moving to the latest human resources trends, let’s take a quick recap of this service. 

In a nutshell, strategic HR outsourcing solutions imply full or partial coverage of business’s needs concerning human resources management and provide a number of benefits. The outsourced specialist or a team of experts “dives” into the company’s work pattern and the team performance.

Usually, this service is sought-after by small and medium businesses or startups. They often don’t have a separate HR department or have a recruiter who is responsible only for the employment processes. 

In such companies, all the human resources management functions are in the hands of CEOs or co-owners. Most often, this recalls the situational control, which results in staff turnover and decreased incomes. Hindsight is always 20/20, but knowing the current trends in HR management will keep you three steps ahead.    

Current Trends in HR

What are the Current Industry Trends in HR and Benefits Outsourcing?

Modern HR outsourcing trends are about leveraging technologies and combining them with acknowledged practices. This helps to accelerate employee performance and facilitate drastic changes within your business. 

An experienced HR team will help you mitigate risks through improved accuracy and implement only those solutions that can foster the business. We’ve gathered some notable outsourcing trends that are changing the industry in 2021:

Artificial Intelligence and Blockchain 

  • Artificial Intelligence

HR is all about connecting companies with potential employees and helping them achieve effective cooperation. However, this often requires tedious tasks, especially when it comes to reviewing resumes over and over again.

That’s when AI comes into play. It recognizes the relevant information of a candidate’s CV and inputs it into the individual forms so the data can be easily sorted. 

HR managers are highly interested in matching the candidates’ expectations with the companies’ and aim for a positive experience for both of them. AI helps to connect employees at all levels of the company and boost engagement.

Also, the practice of implementing AI-backed chatbots takes an important place among the trends human resources. HR managers analyze the employees’ answers to specific questions. Further, they can take action to address potential roadblocks and show the teams their voices matter. 

  • Blockchain

Blockchain isn’t only about cryptocurrency anymore. HR managers can check the virtual credentials of the employees, decreasing the cases of fraudulent applicants. The employees won’t have to worry about their personal data security because all the information stored on a blockchain is encrypted. Third parties don’t have access to such data unless they’ve received verified permission. 

Another use case here is smart contracts that can be used as additional evidence of the rights and obligations for all participants. They can be customized in a way to release payments automatically once the employees completed their tasks. Besides, all the transactions in Blockchain are encrypted, consequently more reliable and not dependent on intermediaries. 

Payroll management in Blockchain allows tapping into the global talent pool. There will be no banks, no fiat currencies, or no payroll aggregators required. In this way, you will access the employees from any country, no matter how distant it is. That’s why this is one of the trends HR experts often introduce into their practice.

Social media as a talent hunting tool

It’s no secret that social media takes a significant place in our lives, no matter whether you’re an active user or a bystander. Around 91,9% of the US companies have social media profiles. HR trends imply taking advantage of the digital platforms and practicing media presence for corporate HR engagement.

Building online conversations is much easier compared to writing complex letters to reach out to potential employees. It makes the company somewhat closer to the candidates and enables a more personal recruitment experience. 

Creativity is the best card here because coming up with catchy job descriptions and appealing visuals is half the success. Targeted advertising plays a significant role here, so the potential employees might reach out to you themselves. 

Aiming for a personal approach to each applicant helps increase the chances of making the candidate interested in the position. Also, businesses that get applicants via social media mention they are around 50% more suitable for the company than traditionally acquired candidates.

Social HR is evolving, so make sure to be in the picture.  

Rethinking onboarding

The employee journey that takes place in the online office is much different from the usual one. But who said it couldn’t be equally, if not more effective? 

This is one of the most comprehensive trends HR experts adopt in their practices. When developing a plan for virtual employee experience, they have to consider several elements, including:

  • work-life balance;
  • well-being;
  • connection;
  • collaboration.

Team-building and socialization are shaped by constantly evolving networking opportunities. HR managers make sure that employees are engaged in decision-making processes, which results in the optimization of business outcomes.   

Engaging Data Analytics

An employee-centric environment is among the biggest HR outsourcing trends. The effective management of human resources is a prerequisite for success. When the HR managers analyze certain indicators related to productivity, innovation, and revenue, they create data-driven strategies. These strategies, in their turn, can boost employee performance and help them overachieve.  

Cloud-based payroll

The cloud-based payroll software market size is expected to reach $10,336 million by 2023. Maintaining payroll services on a cloud has to be your top rule. It simplifies data access, provides an additional level of security, and makes all the processes more flexible. 

The industry sets sights on massive growth, so this is one of those HR outsourcing trends that will skyrocket, so buckle up. 

Aiming for personalization

Nowadays, flexible working hours and regular Zoom check-ins won’t surprise anybody. But job crafting is one of the current trends in HR management that considers five different elements, including:

  • tasks;
  • skills;
  • purpose;
  • relations;
  • wellbeing.

They all are combined to enable the employees to customize their job until it suits them down to the ground. 

HR Outsourcing Statistics

  • Human Resource Outsourcing Market is projected to reach $45,8 billion by 2027.
  • 69% of HR outsourcing companies work with less than 5,000 worksite employees.
  • 60% of HR outsourcing organizations have less than 30 full-time employees.
  • 45% of the services offered by HROs account for HR consulting.
  • 51% of the top issues modern SMBs face refers to recruiting and 24% 一 to retaining employees. 

HR Outsourcing Trends Statistics


There you go: our top 6 HR trends 2021 and beyond. You can get a boost from HR outsourcing and delegate the tasks. In this case, you will focus on crucial business needs and avoid being all over the place. 

If you are struggling with HR and are looking for solutions, HR Bit can tackle this issue. Contact us to get going.