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Why Outsource Human Resources Administration?

Centralize HR Team

LOS ANGELES, CA — Whether you realize it or not, you are most likely already outsourcing. The concept of outsourcing is a part of most of our daily lives. If you take clothes to the drycleaner or have a gardener, then at some point you saw the value of outsourcing. That said, the analogy could be taken as far as if you buy your vegetables at a grocery store instead of growing them yourself, then you outsource. In short, outsourcing is simply recognizing the value of having a specialist with the tools and expertise take care of the task instead of spending the time, money, and effort it would take to do it yourself.

When exploring whether the practice of outsourcing is right for your human resources administration, you should consider the resources at hand. Many large organizations (500+ employees) have already invested hundreds of thousands of dollars or more in human resources technology and infrastructure to manage their human capital. Because of their size, this might be the most scalable practice. However, many small and medium sized employers do not have the resources or in house expertise to address their human resource needs. Therefore, outsourcing their human resources administration can be a good decision to help them focus on revenue generating activities and growth. Additionally, the liability of not having an expert handle sensitive HR matters is immense, often resulting in costly litigation. However, small businesses can rarely afford a team of HR experts on their in house payroll. For these reasons, many small and medium sized businesses are wisely weighing the options of in house human resources vs. an outsourced team of experts. Not unlike the vegetables on your dinner table, many are finding that outsourcing just makes the most sense.