HR Outsourcing Basics

For many businesses that don't have the time or the resources to manage HR functions, outsourcing is a cost-effective alternative to hiring an in-house human-resources staff. Today's HR firms offer a wide variety of services to companies that need to focus on their core business activities and still establish and maintain good HR policies. To decide if HR outsourcing is right for you, ask yourself three questions:

• Are you comfortable letting someone else handle your HR functions?
• Do you have dedicated HR representatives or adequate resources to manage your HR needs?
• Can your business afford an HR outsourcing firm?

If you're not comfortable with an outsider handling your HR functions, outsourcing probably isn't your best option. But before you dismiss it out of hand, consider the many HR functions that can easily be outsourced: recruiting, staffing, benefits, payroll, and training.

Choosing an HR Firm
For some businesses, cost is the deciding factor in vendor selection. Other companies look for a cultural fit or a commitment to quality. Some things you should consider when evaluating a firm include: