Why Outsource HR? 8 HR Tasks That Can Be Outsourced

A well-resourced HR department is critical to the success of any organization.

HR attracts new talent, builds teams and fosters an employee culture that people want to participate in. They identify training needs, manage compliance and risk, negotiate benefits, ensure everyone is fairly compensated, cultivate team morale and more.

So what happens when the HR team is overwhelmed, under-resourced… or worse, doesn’t exist?

In short, organizations could risk noncompliance, struggle to attract top talent, increase burnout, compromise their workplace culture and increase employee turnover. Without the right approach, it’s surprisingly easy for businesses to unwittingly stumble into worst-case scenarios like lawsuits or Department of Labor investigations.

If you know your HR team is under-resourced, outsourcing essential HR tasks can provide the immediate support your team desperately needs. Plus, if you choose the right HR outsourcing partner, you’ll benefit from the creation of more sustainable, scalable systems that help your employees (and your HR team) thrive.

Top Tasks to Outsource to an HR Consultant

When choosing which HR tasks to outsource, think carefully about the needs and goals of your organization.

For example, imagine you’re leading the HR team at a fast-growing tech startup.

Amidst the chaos of rapid expansion — hiring new employees, managing payroll, developing new HR policies and staying compliant — your HR team (which might just be a one person that’s also wearing a lot of other hats) feels overwhelmed and stretched thin. Even worse, you have to choose between prioritizing goal-oriented strategic initiatives and vital day-to-day tasks. As the pressure rises, so too does the risk of critical mistakes and noncompliance.

So what do you do? Here’s one solution:

You can bring in outsourced strategic leadership to help focus on your business’s most immediate needs. In this scenario, you’d get support with building effective recruitment and employee retention initiatives. This brings you closer to your goals of building a strong organizational culture and attracting and developing talent.

Your existing HR team still handles the day-to-day: screening new hires, running payroll, and so on. But along the way, they get the support they need, plus access to experienced HR leaders that will quickly get to know the intricacies of your business.

Depending on your needs, you might choose to do this as a one-off HR consulting engagement. On the other hand, you might retain the support of an experienced outsourced HR team on an ongoing monthly basis.

When choosing the best HR tasks to outsource, carefully inventory your team’s current capacity, expertise and resources. Then, consider outsourcing tasks that:

  • Are too in depth for your team to handle effectively
  • Require more expertise than your team has to excel at the work
  • Would benefit from an objective or external perspective

Below, we’ll explore eight tasks that your HR team’s can effectively outsource to solve your capacity challenges and upgrade your business’s approach to HR.

Task #1: HR Function Development

Navigating the intricacies of HR function development requires careful planning and execution. Outsourcing to experienced HR consultants gives your business access to objective feedback and industry expertise, which are crucial for building a top-performing HR department.

HR consultants can help with:

  • Establishing an internal team: Define the roles and responsibilities within the HR team to ensure clarity and alignment with organizational objectives.
  • Developing the employee handbook: Outline policies and procedures to set clear expectations, promote company culture, reduce risk and assist with onboarding. Expert guidance can help businesses tackle critical areas such as codes of conduct, policies and compliance requirements.
  • Developing policies and procedures: Leverage expert guidance to create or improve policies and procedures, such as leave-taking, conflict management or anti-harassment steps. This helps businesses streamline HR processes and ensure consistency in decision-making.

As a result, your HR team can:

  • Focus on core activities like payroll while leveraging expert guidance in HR management.
  • Ensure compliance with legal requirements and industry best practices.
  • Enhance organizational efficiency and employee satisfaction through well-defined processes and policies.

Task #2: Compensation & Benefits Administration

Managing compensation and benefits requires specialized knowledge and expertise — not to mention time and resources internal teams don’t always have.

Outsourcing can ease this lift. It might also boost efficiency, mitigate risks and result in cost savings through functions like:

  • ACA Consulting: HR consultants guide companies through Affordable Care Act compliance, ensuring adherence to regulatory requirements and avoiding penalties.
  • Compensation & Benefits Strategy: Design competitive compensation packages that attract and retain top talent.
  • Payroll Processing: External help enables teams to streamline processes, reduce errors and ensure timely payments.

By outsourcing compensation and benefits administration, businesses can:

  • Mitigate compliance risks and avoid costly penalties associated with regulatory non-compliance.
  • Optimize compensation strategies to align with organizational goals and market trends.
  • Improve operational efficiency and accuracy in payroll processing, freeing up resources for strategic initiatives.

Task #3: Recruitment & Employee Retention

If your company wants to grow, it must attract and retain top talent. By outsourcing certain HR tasks, you can benefit from deep expertise and objective guidance in areas like:

  • Recruiting and retention strategy: Sharpen recruitment and reduce turnover with competitive strategies.
  • Employee experience: Optimize the employee journey, from onboarding to offboarding, to ensure a positive and engaging experience at every stage.
  • Training and performance development: Design training programs and performance improvement initiatives that foster employee growth and development.

By outsourcing recruitment and employee retention, businesses can:

  • Access a broader talent pool and attract candidates with specialized skills and expertise.
  • Enhance employee engagement and satisfaction through personalized development programs and career advancement opportunities.
  • Reduce turnover and associated costs by implementing effective retention strategies tailored to the organization’s culture and values.

Task #4: Employee Engagement and Satisfaction

Employee engagement and satisfaction are critical drivers of organizational success. HR consultants offer guidance and leadership in the following areas:

  • Employee engagement: Design surveys and feedback mechanisms to measure employee engagement levels and identify areas for improvement.
  • Employee satisfaction: Putting templates in place for exit interviews and analyzing employee feedback to address key pain points and enhance job satisfaction.
  • Employee development: Create targeted training programs and career development initiatives to empower employees to grow and succeed within the organization.

By outsourcing employee engagement and satisfaction initiatives, businesses can leverage objective feedback and outside expertise to:

  • Improve employee morale and productivity by addressing concerns and fostering a positive work environment.
  • Enhance retention rates by investing in employee development and career advancement opportunities.
  • Leverage employee feedback to make data-driven decisions and continuously improve HR practices and policies.

Task #5: Organizational Culture Development

A solid organizational culture keeps employees engaged, promotes collaboration and positions a company for competitive success. It also boosts recruitment by fostering an environment in which top talent wants to work.

By outsourcing organizational culture development, companies can leverage consultants’ depth of knowledge and experience to create a stronger foundation for their team’s success. For example, outsourced HR consultants may assist with:

  • Culture assessment and diagnosis: Conduct surveys, interviews and focus groups to assess organizational culture and identify areas for improvement.
  • Strategic culture planning: Develop a strategic plan for aligning organizational culture with business goals and objectives.
  • Leadership development: Train leaders to help them model desired behaviors and reinforce a positive company culture.

Outsourcing organizational culture development enables businesses to:

  • Align organizational culture with business goals and objectives, driving employee engagement and performance.
  • Develop leaders who can effectively shape and reinforce the desired organizational culture.
  • Navigate cultural transitions and change management initiatives with the support of experienced HR consultants.

Task #6: HR Compliance

Staying compliant with ever-changing regulations and labor laws is essential for mitigating risks and maintaining ethical standards. However, staying ahead of these complex processes and regulations can be difficult — especially for internal teams that are pulled in many different directions.

By outsourcing HR compliance, businesses can reduce their risk and foster compliance more easily:

  • Legal compliance and labor laws: Consultants help businesses understand and comply with key regulations such as EEOC, FMLA and workplace safety standards.
  • Compliance audits: Consultants conduct audits to assess compliance with HR policies, procedures and regulations.
  • Risk management: Consultants identify potential compliance risks and develop mitigation strategies.

As a result, businesses can confidently stay up to date with regulatory changes, reducing the risk of costly penalties and lawsuits. Outsourcing can also promote consistency and fairness in HR practices, even as HR teams focus internal resources on strategic initiatives.

Task #7: Fractional Leadership

Fractional leadership offers a flexible solution for businesses that need HR leadership expertise but lack the resources to maintain a full-time leader in-house.

A fractional HR director could guide a company through:

  • Interim HR leadership: Temporary support during transition periods, such as leadership vacancies or organizational restructuring.
  • Strategic planning: Develop and execute HR strategies aligned with business goals and objectives.
  • Change management: Help teams navigate difficult transitions and adapt to new processes and procedures.

Fractional HR leaders grant companies with fewer resources access to veteran HR leaders with significant expertise. And these arrangements are often flexible, without the commitment or expense of a full-time hire.

Task #8: HR Metrics & Analysis

If a company wants to optimize its HR processes, few resources are more valuable than data. Through outsourcing, companies can access top HR analytics and optimization experts and leverage their insights to build stronger HR strategies.

For example, outsourced HR consultants could guide:

  • KPI development: Identify key performance indicators (KPIs) for measuring HR effectiveness and performance.
  • Data analysis: Analyze HR data to identify trends, patterns, and areas for improvement.
  • Benchmarking: Benchmark HR metrics against industry standards and best practices to assess performance and identify opportunities for improvement.

As a result, businesses can make more informed HR decisions, monitor the effectiveness of their strategies, and position themselves more competitively to attract and retain talent.

Strengthen & Scale Your HR with James Moore HR Solutions

In many ways, HR is the beating heart of an organization. They attract talent, manage relationships with employees, mitigate risk, ensure fair compensation and set the whole team up for success.

But to do it all, the HR team needs time and resources — something many fast-growing organizations simply don’t have. Thoughtful outsourcing provides the extra hands, expert guidance and additional resources an HR team needs to excel. And if the HR team excels, so does the rest of the company.

James Moore’s expert HR advisors provide the hands-on HR guidance any team needs to grow. Whether you need to learn from an experienced HR leader, consult with experts to identify and resolve strategic problems, build an in-house team or just have a few extra hands, James Moore’s wealth of expertise can help. To learn more about how James Moore’s HR consulting team can help you scale, stay compliant and mitigate risk, contact an advisor today.


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