Which HR Functions Can You Outsource To A Business Outsourcing Company?

Business outsourcing is a strategy for employing a third party to handle operations and supply services. The third-party service provider is an outside business or individual who performs the duties or services either locally at the hiring company’s premises or remotely. Businesses typically outsource roles their workers lack expertise or the ones necessary for a particular project. Today companies can outsource a variety of jobs or services. Marketing, sales, IT, administrative activities, customer support, manufacturing, logistics, and HR are the roles that are most commonly outsourced to business outsourcing companies.

Advantages of business outsourcing

Companies choose business outsourcing due to various reasons; some are enlisted below.

  • Focus: Employees can entirely focus on the core business activities
  • Cost Efficiency: Business outsourcing is much more cost-effective, saves you costs of recruitment and office space and allows you to take advantage of expensive resources
  • Increased Productivity: Business outsourcing reduces your burden so you can do core functions with increased work efficiency and productivity while your outsourced tasks are handled efficiently by the experts
  • Risk sharing: Business outsourcing companies have teams of experts in what they do; hence they are more efficient in mitigating risk factors with proactive strategies

HR Outsourcing

The term “human resources” (HR) covers various responsibilities and tasks. HR includes all employee-related activities such as hiring, onboarding, and team management. Fortunately, you can outsource your HR requirements when necessary. Employers have a variety of choices for outsourcing their HR departments.

HR outsourcing is a contract between a business owner and a third party to manage all or part of the organisation’s HR roles. Activities such as hiring, handling payroll processing, administering employee benefits, acquiring talent, or all of the above and more, can be included in these HR operations. While HR outsourcing might save time and money, still some companies may prefer dealing with in-house HR specialists.

Why Do Businesses Choose HR Outsourcing?

One of the biggest advantages of business outsourcing is the ability to reduce operating costs. Because you don’t need to recruit a large staff to handle the different HR functions, outsourcing can help your business reduce expenditure. When you outsource HR activities, you can reduce overhead costs even more. Additionally, business outsourcing greatly reduces the risk of employee turnover issues. The most significant way to ensure that your crucial business processes don’t suffer if you lose workers is to outsource human resources operations. By lowering the number of management responsibilities, they can stay focused; moreover, this decreases the workload of managers. To maintain the department’s flawless operation is one of the primary justifications for HR outsourcing.

HR Functions That Can Be Outsourced

Employee Recruitment

In order to acquire team members that will be beneficial over the long term, outsourcing your company’s recruiting efforts can help you create a pipeline of experienced people. A business outsourcing company can offer the following recruiting services:

  • Sourcing candidates
  • Use of an online application tracking system
  • Support for job descriptions
  • Postings for jobs
  • Resume evaluation based on client requirements
  • Access to pre-hire job evaluations, drug tests, background checks, and physical examinations
  • Introducing new hires


Enhancing employee performance in the present as well as the future is the responsibility of the HR manager. The HR manager achieves this through educating and advancing the knowledge and abilities of the staff members in their specialised domains. HR is in charge of conducting employee training sessions. Conducting workshops and training sessions for firms without an HR department can be very time-consuming and challenging. You can outsource training to business outsourcing companies, saving time and training costs.

Pay Role Management

The overall payroll management of the business, including the gross salaries, benefits, taxes, and insurance coverage for each employee, comes under the HR department. However, all the mentioned duties are time-consuming and demand precise attention to prevent erroneous calculations, which can lead to serious problems. Therefore, it is advisable to opt for HR outsourcing to get the calculation of employee salaries, managing deductions and adjacent tax costs as per the ever-changing legislation off your shoulder.

Administrative Tasks

HR may help an organisation achieve its strategic goals, especially with it comes to the workforce, and is not merely for transitional purposes. HR consultants are responsible for drafting service strategies and providing tactical advice on policies and procedures. In addition, HR outsourcing streamlines crucial business functions like administrative tasks, employee management, recruitment, retention and development.

Outsourcing HR operations to an experienced business outsourcing company brings various benefits to the company, which you might be missing out. Tinyox offers reliable business outsourcing services, including HR outsourcing, where we efficiently handle all your staff-related matters and concerns efficiently and flexibly in the best interest of your company.