HR Outsourcing: What You Get vs. The Value You Should Expect

August 6th, 2014
Written by: Elizabeth Richards

On the Internet, there are many lists of reasons to outsource HR.  Here’s an example of one that was forwarded to me recently:  http://www.forbes.com/sites/meghanbiro/2013/12/01/top-5-reasons-hr-is-on-the-move/#

This list includes these five reasons for outsourcing HR:

1. It frees them (customers) to concentrate on core competencies.
2. It saves money.
3. It improves compliance.
4. It improves recruitment.
5. It provides access to the latest tools and technology.

What’s so striking about this and many other lists is that it tends to reinforce the transactional, tactical, “check the box” reputation of HR.  What’s omitted is actually the most important and valuable benefit: Helping clients understand what they need to do and why.

After all, most of our clients are not HR experts—they are CEOs, business owners, CFOs and Presidents.  So, yes, hiring a tactical HR resource is important to make sure “the right boxes are checked.” But who will help the organization identify and think through “what they don’t know?”

This is the real value-add of HR outsourcing—and we believe it should be on every “why outsource HR” list: to help organizations understand how their business priorities impact their “people priorities.”