Outsourcing various processes, especially software development, isn’t a novelty for companies.
However, outsourcing HR services is a concept that gains ground on the market and establishes new trends in building teams. HR outsourcing comes in handy for startups and SMBs that don’t have enough resources to establish an independent HR department but need to keep their employees motivated.

Investing in HR outsourcing will bring you a handful of benefits in the long run because your team will be in the good hands of experienced HR professionals. With it, you get access to the best global talent with no strings attached; just pay for a service and get the service.

Nevertheless, it doesn’t imply that the external HR will be an outsider in your company. The situation is just the other way around because he/she will get a new angle on your business and share insights on how to help it boost. Let’s tackle the question of “what are the benefits and failures of outsourcing HR” to make the task easier for you. Also, if you still have doubts about the importance of HR, you should read our article about questions that CEOs should ask themselves.

HR Outsourcing Statistics: Companies that outsource HR functions in the world


You still can choose the most suitable candidates

The benefits of outsourcing HR functions are making all the processes more efficient and doing away with going through numerous CVs and recruiting. The outsourced HR managers will take care of the first interview stages and sort the resumes to make it easier for you to determine suitable candidates. 

Besides, the managers can leave feedback about each interviewee, so you won’t have to go through the same questions over and over and get down to business within shorter terms.  

You will choose the team members yourself but won’t have to worry about onboarding, payroll, and other tasks associated with hiring employees. 

You can save money

The bigger your team is, the more HR professionals you need because there are too many tasks for one person to handle. However, setting up an HR department might be costly because you’ll have to pay salaries, taxes, and social packages. 

Having such a department in-house requires a significant amount of resources, and one of the notable benefits of outsourcing HR services is that you can lower the costs. 

Besides, companies often need HR managers for independent functions, like managing payroll, employee acquisition costs, salaries, and training costs. Therefore, there is no need to have a large team full-time. However, in case you are going to hire new employees soon, you might require a specialist or a couple of them to reduce turnover in the long run.

You can make your business more flexible

You can focus on core business tasks instead of handling payments, dealing with all the tax requirements, or checking the most recent updates to make sure you offer competitive social packages. The benefits of outsourcing HR are that you have more time to spend on fostering collaboration with international partners and rethinking business strategies. 

Besides, if your goal is to expand the targeted market, you will need to put much effort into setting up clear goals and values, so being entrenched in HR concerns won’t be helpful. The experts can deal with certain tasks within several days, while you may spend a couple of weeks trying to figure things out.

So, the advantages of outsourcing HR give your company higher adaptability and enable dealing with the tasks that help the business achieve recognition on the market. 

You can engage experts to help your employees grow

Having a comprehensive review of your company and current HR policies and practices helps to understand what exactly your business lacks and set room for improvements. 

The benefits of outsourcing HR to HR professionals are that you won’t have to try to guess what practices will help you make the employees more motivated and increase their performance. 

The managers will know exactly what is required and seamlessly introduce several approaches that will bring efficient results. Moreover, HR professionals will revise your practices and policies to see whether they comply with the laws. 

You can improve the employee experience

When the professional HR managers get to work, they see right away how to make the team achieve better results and engage practices that focus on utilizing their strengths. They evaluate employee performance and create strategies focused on helping the team members accomplish more and get rewards for their work. 

The advantages of outsourcing HR functions are that the professionals inspire your employees to take unusual approaches to deal with tasks and not be afraid to express their points of view. HR managers help each employee feel valued because they emphasize each individual’s skills and establish friendly and comfortable workspaces.  

You can provide better employee benefits

In their recent article, “Benefits of HR Outsourcing: How even Small Businesses can Provide Great HR,” Forbes suggested that employers must constantly monitor the regulations’ updates if they want their employee benefits to meet the standards. However, it’s a tricky task, which can take a long time. HR consultants can help you create tailored benefits packages and make them competitive. This helps to meet the team members’ needs and make sure they are satisfied with their working conditions.    

A professional HR manager will help you with designing benefits that meet your requirements and won’t go beyond the budget limits. One of the most remarkable advantages of outsourcing HR is that a professional finds balance between the company’s financial capacity and market demands.  

Speaking of the HR outsourcing shortcomings, there are a couple of them:

  • lower quality of human interaction;
  • risks of information leaks;
  • possible lack of control.

List of HR Outsourcing Benefits


It’s always better to outsource HR functions whenever you can. You will focus on your core business tasks, and the experts will guide you on establishing high-performing working environments. The advantages of outsourcing HR functions include access to a large pool of professionals at a more affordable cost than if you were to build your own HR department from scratch. 

You can entrust HR outsourcing to HR Bit because we will be able to steer you the right way and enable the talent your team has to work for the company’s ramp-up.

You can also read the article on HR outsourcing cost.