The leading reason behind the switch from in-house HR managers to HR Outsourcing professionals, is value. Outsourcing HR functions gives companies with benefits that they usually couldn't afford or obtain. The more clients an HR service firm has, the more negotiating strength they may have to take on profit-driven health coverage and employee benefit organizations. As a result, the company will be able to lower their health care plan costs and offer workers many previously unaffordable benefits. This makes the company more competitive when recruiting and retaining talent in aggressive job markets.
Lower Legal Liability
Compliance is an ongoing challenge for many HR departments that must deal with complicated labor, safety, discrimination, and employment regulations. Increasingly strict regulatory environments make it quite difficult for HR professionals in small businesses to remain entirely compliant with changing OSHA, worker's compensation, and Affordable Care Act rules. HR service firms often accept some or all of the legal responsibility for managing compliance.
New HR Industry Standards
Business practices and perceptions are evolving with changing market, industry, and government trends. Companies can choose which functions to outsource and the level of their integrated involvement with the HR services firm. An HR partnership provides customized services and documentation with access to a team of experts. Human Resources Outsourcing (HRO) is a comprehensive plan that comes with an on-site HR Professional.