HR outsourcing has proven to be a worthy measure companies can take to manage their day-to-day tasks more efficiently and cost-effectively. Recruiter.com notes that a "record number" of companies have chosen to turn to HR outsourcing firms since the recession hit and budgets have become tighter.
The news source also cites a recent Society for Human Resource Management poll which revealed that the No. 1 reason companies turn to HR services is to save money.
Areas where a third-party HR management firm can help include tasks such as payroll management, 401(k) plans, recruiting, workers' compensation and insurance.
The HR Knowledge blog adds that these firms can create employee manuals that define expectations and offset legal risk. For instance, expectations for social media usage that managers may never have got around to addressing can be established in a policy manual. This can save the company from potential litigation down the line.
Recruiter adds that other potential liability issues involved in hiring, benefits and risk management can also be handled by the third party.
