HR outsourcing may be a worthwhile tool for companies feeling the crunch of the struggling economy. Doing so creates one less in-house employee to worry about, and removes the requirement to provide workers compensation, health insurance, payroll and tax filing, Biz Sieve explains.

"In place of current management, the HRO firm takes over some of the cumbersome administrative functions relating to employment," explains CPEHr. Other tasks such as COBRA management, responding to employee inquires, unemployment claims and streamlining HR processes do nothing to add to a company's bottom line, which means efficiency can be improved by eliminating the need to perform them.

Biz Sieve notes that goals must be enacted prior to setting up an outsourcing relationship, as this allows a business to measure progress and create an overall purpose.

What's more, open communication is key to maintaining realistic expectations. Examples include setting up an email checking schedule to make sure no messages are going into spam, performing daily, weekly or monthly phone meetings and taking advantage of video chat technology such as Skype.

Finally, assemble a team to work closely with the outsourcing service. It should include one member of each department involved, preferably people who tend to work well with one another. 

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