4 Reasons for Businesses to Outsource Their HR Needs

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(DGIwire) – The global market for human resource outsourcing is projected to reach $53.9 billion by 2020, according to market research firm Global Industry Analysts. Today, nearly 85 percent of firms outsource at least some of their HR functions, reports Inc.com. But why would a business need or want to outsource its HR functions in the first place? Here are four reasons:

  • It can minimize hassle: A company’s ability to focus on its core competencies may enable it to grow rapidly without getting bogged down in managing such basic but time-consuming and labor-intensive functions as payroll, benefits and vacation time, notes Inc.com.
  • It can reduce costs: According to the Society for Human Resource Management, utilizing a talent solutions firm can lower overhead expenses otherwise incurred by the company. The services conducted by the external firm may be less of an expense than conducting them in-house.
  • It can offer employees better healthcare options: Engaging the services of a talent solutions firm, which can leverage its power to offer a superior range of health plans that are relatively high quality, means a company is more likely to attract and retain employees, Inc.com notes.
  • It passes the need to navigate risk to the experts: Risk mitigation is one of the most compelling factors in a company’s relationship with a talent solutions firm, Inc.com reports. Workers’ compensation and other issues can be handled in a more expeditious manner when specialists are at the wheel.

“Outsourcing has the potential to make an organization leaner, more adaptive, smarter and more profitable,” says Rebecca Cenni, founder and CEO of Atrium Staffing. “The rewards for a company that chooses the right partner with the appropriate track record and expertise are many.”

Atrium is a New York City-based talent solutions firm, focused on providing contingent workforce management services for mid-size and Fortune 500 companies in nearly every industry. Atrium’s expertise includes regional Temporary and Direct Hire Staffing, national Employer of Record Payrolling, national Independent Contractor Engagement and specialty Intern Recruiting Services. The company has extensive experience matching the right candidates for a range of positions within a variety of industries.

“When a company is determining whether or not to outsource, it’s worth looking at the big picture. In the end, the advantages that come with doing so become clear very quickly,” adds Cenni.