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5 Signs You Should Outsource HR Tasks


Outsourcing HR operations can help your company grow, but many companies struggle to identify the right time to make that move. What's the right balance of efficiency and cost, and when can outsourcing actually help your company save money and time through better processes? Luckily for HR managers and business leaders alike, there are clear signs that it's time for a company to consider outsourcing HR and investing in better human resources technology.

Here's a look at some things to watch for when determining if you should be outsourcing HR technology and operations.

Your Team's Entire Focus is Administrative

As businesses grow, there's a point where the influx of work into your HR department creates a considerable administrative backlog. From onboarding new employees to managing benefits and payroll, the HR workflow can quickly become entirely administrative. Limiting your team to predominately administrative work takes their focus off strategic contributions. If your team is spending the majority of their week on tasks such as data input or forms processing, it's time to look at outsourcing or upgrading to better HR systems.

Employees Don't Have Access to Self-Service

Not too long in the past, HR managers assisted with everything from benefits enrollment to updating employee information. One of the key advances in HR technology has been the creation of self-service portals, which encourage employees to log in and handle these basic tasks themselves. It frees up your HR team's time, and many employees find the process more convenient than having to coordinate with their HR rep during business hours. If you're not offering employee self-service for key HR tasks, it's time to consider upgrading your HR software.

Self-service portals encourage employees to log in and handle basic tasks themselves.

Your HR System Doesn't Support Mobility

The work environment is becoming more complex, as many employees are starting to work remotely or telecommute for part of the week. Many employees are also spending less time in the office as they travel for business or work from client sites. As a result, companies are increasingly migrating to cloud-based solutions that support mobility for key services such as time and attendance reporting. If your employees can't complete essential functions from their smartphones or tablets, that's a sign that your HRIT infrastructure needs an update.

HR is Becoming a Cost Center

Many companies have the perception that HR is a cost center. For example, inefficient processes and too much administrative work can require additional resources to support HR without generating the appropriate results. However, your HR team should ideally be a key strategic asset for your company. If your HR team isn't contributing at this type of level, it's important to ask yourself whether outside expertise or better technology can help.

You're Struggling to Keep Up with Statutory and Regulatory Requirements

One of the biggest areas that businesses of all sizes struggle with is compliance with applicable statutes and regulations. Your HR team needs to understand all the current laws and regulations that affect your business. It's also critical that your infrastructure supports data collection and reporting. Sometimes a difference of just a few hours of employee time can cause your business to reach an employee threshold that could have major implications for your compliance needs. As a result, companies that don't have the in-house expertise in this area may want to outsource their HR technology and operations. Having expert advice on hand can help lower your expenditures as well as protect you from expensive penalties and fees.

These are just a few of the signs that might indicate that it's time to outsource your HR operations or upgrade your HR technology. Being aware of your business' current situation can help ensure that you're investing in the right time to support your growth and ongoing operations.


This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.
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