benefits of outsourcing hr functions

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10 Benefits Of Outsourcing HR Functions

Are you feeling the world’s weight on your shoulders with all those HR tasks piling up? It’s time to lighten your load and supercharge your efficiency with HR outsourcing. But wait, what exactly is HR outsourcing, and how can it transform your role? Let’s dive in and explore the benefits of outsourcing HR functions. It can be your secret to success in managing human resources


What is HR outsourcing?

Picture this: you’re the HR professional managing all the intricate aspects of human resources within your organisation. From recruitment to compliance, it’s a lot to juggle. But what if there was a way to lighten your load?


HR outsourcing services are designed specifically for professionals like you. It’s the process of partnering with an external company to handle some or all of your HR tasks. Whether it’s streamlining payroll, navigating complex legal requirements, or enhancing employee benefits, outsourcing offers a strategic approach to managing HR responsibilities.


Leveraging the expertise of an external provider can be like expanding your team without adding more desks to your office. You can focus your time and energy on high-impact initiatives while ensuring that essential HR functions are expertly managed. 


Outsourcing isn’t about relinquishing control; outsourcing HR benefits is about maximising efficiency and effectiveness. Whether you outsource specific projects or delegate comprehensive HR functions, the goal remains to empower your organisation to thrive. 


So, for companies of varying sizes, outsourcing isn’t just a solution- it’s a strategic advantage. It’s about elevating your role from tactical execution to strategic leadership, driving positive outcomes for your organisation and its employees. 


Which HR functions can be Outsourced?

When it comes to running a business, handling all the HR tasks can be quite overwhelming. But did you know that you can outsource some of these functions?


It’s true! There are immense benefits of outsourcing HR functions. It can save you time and resources, allowing you to focus on growing your business and taking care of your customers better. Additionally, HR system integration becomes seamless, enabling smoother data flow and better analytics. This allows internal teams to focus on core business activities, driving growth and innovation.


Here are some HR functions that you can outsource:



Keeping up with ever-changing employment laws and regulations can be challenging. Outsourcing this to HR experts ensures your business stays compliant and avoids penalties. 


Employee Relations

Dealing with internal compliance or issues like harassment claims requires skill and sensitivity. Sometimes, the internal HR team is already short-staffed, or in smaller organisations, it can become difficult for them to remain impartial.


In such cases, an external agency or mediator helps resolve issues and maintain a positive and amicable working environment.


Payroll Processing Services

Ensuring timely and accurate payment of wages, taxes, and deductions is crucial. Outsourcing payroll processing ensures everything is done correctly and in compliance with laws. 


Employee Benefits and Workers’ Compensation

Offering benefits like health insurance or retirement plans is important for employee satisfaction. Outsourcing HR can help you provide competitive benefits packages. 


Handling claims and ensuring injured employees get proper care can be complex. Outsourcing this function helps streamline the process and reduce issues. 


The benefits of outsourcing HR functions like these can take the worry off your shoulders and let you focus on running your business smoothly.


Types of HR Outsourcing 

As HR professionals, you understand the importance of finding the right solutions to support your organisation’s needs. When outsourcing HR services, exploring the different types of HR outsourcing methods available is essential. Here’s a closer look at the options:


Professional Employer Organisation (PEO)

When you team up with PEO, you’re getting a helping hand to manage your HR tasks. Here’s how it works:


The PEOs officially act as the employer for your staff. They handle things like paying salaries, managing benefits, and ensuring all the legal aspects are sorted out. But don’t worry—you still call the shots when it comes to day-to-day employee matters like hiring and managing performance


You pay the PEO for their services, but even though they handle the paperwork, you’re still responsible for tasks like bringing new hires and updating employee records. 


PEOs are especially handy for small to medium-sized businesses. They give you access to perks and services that might otherwise be too pricey. It’s like having the resources of a big company while still running your own ship. 


Administrative Services Organisation (ASO) 

When considering outsourcing options, an ASO provides a comprehensive suite of HR services while allowing businesses to maintain their employer status.


Unlike a PEO, where the provider becomes the employer of record, ASOs function as trusted partners, offering support and expertise in administrative HR functions. 


Under the ASO model, businesses retain control over their employees and their records. The ASO acts as an advisor and collaborates closely with the internal HR team to address needs and concerns. This approach allows businesses to customise their HR services, choosing only the ones that align with their specific requirements. 


For HR professionals seeking more operational support while retaining authority over their organisation, ASOs offer a tailored solution. With an ASO, you can maintain your current benefits structure and utilise preferred technology solutions while benefiting from the organisational and administrative support of an external HR services provider. It’s like having a knowledgeable ally to assist with HR tasks without relinquishing control over company operations. 


Human Resources Organisation (HRO)

For HR professionals, HROs offer a flexible and tailored approach to outsourcing HR functions. Picture it as a customisable menu of services designed specifically for larger companies with existing HR capabilities. 


Unlike other outsourcing models, HROs empower HR teams to select the precise services they require, much like picking dishes from an a la carte menu. Whether it’s recruitment, compliance, or other specialised areas, HROs provide targeted assistance where needed. 


These organisations are well-suited for companies with the capacity to manage general HR functions but seek additional support in specific areas. With a diverse array of services on offer, HROs cater to the varied needs of larger corporations. 


The appeal of HROs lies in their versatility and comprehensive service offerings. The advantages of outsourcing HR functions is that they allow HR professionals to maintain control over their operations while accessing specialised expertise in key areas.


Each model empowers organisations to enhance efficiency and drive success while maintaining control. Let us learn in-depth about why it is important to outsource HR functions. 


What are the Benefits of Outsourcing HR Functions

Discover the benefits of outsourcing HR functions! From saving money to accessing top-notch expertise, outsourcing can transform your HR game and supercharge your organisation’s success. 


Cost Savings

Outsourcing your HR tasks can be a real money-saver. You won’t have to worry about hefty salaries, benefits, or training costs for an in-house team. 


Access to Expertise

Imagine having a whole squad of HR pros at your fingertips. That’s what outsourcing offers! You can access diverse expertise in different HR areas, from recruitment to compliance. It’s like having your dream team! 


Focus on Core Activities

Tired of drowning in paperwork? One of the benefits of outsourcing HR functions is that it frees up your time to focus on what matters- strategic initiative and employee growth. Say goodbye to mundane tasks, and hello to making a real impact! 



Business needs fluctuate, right? Outsourced HR services can easily flex up or down to match those changes. No need to stress about hiring or downsizing internally. 


Compliance Management 

Keeping up with employment laws can be a headache. Luckily, outsourcing partners stay on top of all the latest regulations, so you can breathe easy knowing your organisation is compliant. 


Enhanced Efficiency

One of the benefits of human resource outsourcing is that it can turbocharge your efficiency, leaving you more time to tackle those big projects or even take a well-deserved coffee break! 


Employee Development 

Who doesn’t love levelling up their skills? Outsourcing partners often offer awesome training programs, giving you the tools to empower your employees and foster a culture of growth. 


Improved Employee Experience

Happy employees, happy life! With outsourced HR support, you can offer top-notch benefits, support, and development opportunities, creating a workplace where everyone wants to stick around. 


Risk Mitigation 

Nobody likes playing with fire, especially when it comes to legal compliance. Outsourced HR providers are pros at navigating tricky situations, so you can sleep soundly knowing your organisation is protected. 


Strategic Support 

Need a sounding board for those big decisions? The benefits of outsourcing HR functions include getting strategic insights to help you steer the ship toward success. It’s like having a trusted advisor in your corner, ready to help you conquer any challenge! 


With HR outsourcing, you gain cost savings, expertise, and strategic support while focusing on core activities and enhancing employee experience. It’s a win-win for your organisation’s growth. 


How 6 Pence Helps

So, there you have it! The benefits of outsourcing HR functions are clear: cost savings, access to expertise, enhanced efficiency, and more. By leveraging outsourcing, you can streamline your HR processes, focus on activities, and ultimately drive success for your organisation. So why wait? 


Not, sure of where to find a reliable partner. Don’t worry! 6 Pence is a leading staffing and HR outsourcing partner in Dubai, Bahrain, Oman, and Iraq. We have two decades of experience in providing customised and full-service staffing, payroll, and HR administration services to our business partners. To learn more, contact us today!


Frequently Asked Questions

1. What is HR outsourcing?

HR outsourcing is when you can delegate your tedious HR duties to an organisation with expertise in handling hiring, payroll, legal matters, administrative work, etc. 


2. What are the benefits of outsourcing?

Outsourcing HR means saving costs, accessing expertise, turbocharging efficiency, and creating a thriving workplace. It’s the secret sauce to supercharging organisational growth!


3. How will outsourcing increase the effectiveness of HR?

Outsourcing increases HR effectiveness by allowing experts to handle tedious tasks, freeing up internal resources for strategic initiatives. It boosts efficiency, ensures compliance, and provides access to specialised knowledge, enhancing overall HR performance and driving organisational success.


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