As HR Functions Evolve, Outsourcing Gains Favor

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(DGIwire) – Human resources departments are in a state of flux. According to The Wall Street Journal, some business executives have come to feel that the traditional HR department has assumed so many responsibilities that it can stifle an organization’s innovation and bog it down with inefficient policies and processes. Other companies are striving to downsize or reduce the influence of HR on corporate culture.

There is another popular trend for businesses looking to overhaul their HR functions: outsourcing its activities. According to an article in the July/August 2016 issue of HR Magazine, outside firms can serve organizations whose HR functions are limited by the realities of budget or bandwidth, and can provide companies with a full range of services: recruiting, compensation, training and development, employee communications, and nearly every other function.

The idea of outsourcing HR isn’t new. What is new, says HR Magazine, is the rapid growth of the industry. It is expected to generate $53.9 billion in business globally by 2020, compared with $42.6 billion in 2015, according to market researcher Global Industry Analysts. That’s more than a 25 percent increase in a few short years.

Generally, companies don’t need a full-time HR staff person until they reach the 100-plus employee mark, according to one industry observer quoted by HR Magazine. In many ways, the report suggests, it is much more cost-efficient for a small- to-medium-sized business to outsource its HR functions.

Some HR contracting businesses consist of individual practitioners who devote their time to a handful of clients; others consist of specialists who spend a designated amount of time each month with specific customers.

“Under continuous pressure and operating with budget constraints, more HR departments are turning to outside specialists to handle responsibilities and provide key expertise in important decisions so staff can focus on the organization’s business needs,” says Rebecca Cenni, founder and CEO of Atrium Staffing. “For a range of smaller businesses, it’s the only realistic option—but a talent solutions firm can also help larger companies where more is at stake.”

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.

“The complexity of the employment laws and policies that companies of all sizes must comply with can be dizzying, and a talent solutions firm can ensure that businesses adhere to guidelines while staying focused on running their day-to-day business,” adds Cenni.