Why Outsource Human Resources

In a recent survey by the Society for Human Resource Management (SHRM), HR professionals were asked if they outsource any HR functions, and if so, which functions they outsource. Respondents were asked to select all that apply. The results were as follows:

Reason for Outsourcing

• 26 percent – Save money
• 23 percent – Focus on strategy
• 22 percent – Improve compliance
• 18 percent – Improve accuracy
• 18 percent – Lack experience in house
• 18 percent – Take advantage of technological advances
• 17 percent – Offer services we otherwise could not
• 15 percent – Focus on core business

A 2010 SHRM survey asked executives the question, “What do you think will be the biggest investment challenge facing organizations over the next ten years?” For 47 percent of respondents, the answer was, “Obtaining human capital and optimizing human capital investments.”

To accomplish these goals, HR managers must do so much more than simply hiring talent. According to SHRM, 40 percent of HR managers stated that designing jobs that provide employees with meaningful work that also has a clear purpose in meeting the organization's objectives is the best way to attract and retain top talent.