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Human resources outsourcing on the rise among small and medium businesses

Posted on July 26th, 2013 Read time: 1 minutes

According to The Fiscal Times, nearly 85 percent of firms outsource some aspect of their human resources administration tasks. Startups and other organizations of small and medium size are beginning to take advantage of the strong business case for doing the same. Companies that want to focus on growth may find outsourcing HR functions gives them the time and resources to hone in on their core competencies for greater success, while still providing services to their employees.

The variety of HR functions that can be outsourced is great. Firms exist that can take care of payrolling, reducing the amount of time business owners or other personnel must spend on this task. This is a good place to start with outsourcing; a business may find that several free hours a week that used to be devoted to payrolling work are a great benefit. Other areas in which HR outsourcing can serve businesses of all kinds include employee benefits management, enabling even startups to provide a high class of benefits that might otherwise be out of their reach.

Finally, some companies do outsource human resources completely by electing to have a staffing firm serve as the employer of record for contract workers they may choose to hire. This establishes a working relationship between the staffing firm and the employee that takes the pressures of managing contingent workers off of a business entirely.

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