The Top Ten Reasons Companies Outsource HR

OperationsInc has been providing Human Resources (HR) Outsourcing services to businesses of all sizes since 2001. Our team of 50+ HR Experts support a base of 1,200 clients across over 60 industries. When new clients reach out to us, we ask why they have chosen to outsource their HR function.

Here are the Top Ten most frequent responses we receive:

I don’t want to get sued.

Specifically, I need someone who “knows this stuff” to help ensure that we are following all the laws and the best practices for our business, therefore limiting our liability.

We want to look professional to our employees and candidates for hire.

Outsourcing HR gives us the ability to deliver high quality HR process and support from someone who is trained and experienced in HR.

We need HR managed the same way we manage accounting, marketing, sales, etc.,

professionally and completely by someone who is an expert in their field. Usually the owner of this function was hired to do something else entirely different and / or never received any formalized training on how to manage HR.

We need to do a better job hiring people.

As non-HR professionals, we probably get the hiring process about 70% correct, but having someone who knows the space guide us on sourcing, screening, qualifying, and interviewing will result in better hires, less turnover, and tangible positive results to the bottom line.

We need to do a better job managing poor performers and / or handling terminations.

There are too many pitfalls and possible issues that arise based on what you say, how you say it, and who you say it to when it comes to communicating concerns about performance. Professional HR guidance will address that.

We spend a good deal of our operational budget on HR related vendors

(employee benefits, 401(k), payroll), but don’t manage the providers well and don’t know enough about each item to know if we are getting the best bang for our buck. Professional HR guidance via a firm who does this for hundreds of firms will ensure we are doing it right.

The laws keep changing. Policies keep popping up.

We need someone to stay on top of this and tell us what applies to our business, how to comply, and overall what other businesses are doing.

HR is not a full time job in our organization, but it is as critical as any other role in our firm.

We need to flexibly support this need to ensure it does not get less attention than is truly needed.

If we are going to grow, we need the input of a professional HR resource on organizational planning and development.

We want to develop our people, giving them a path from entry into the organization and up the ladder, and as such need guidance on how to cultivate our talent to ensure upward mobility and long term organizational success.

We always say our greatest asset is our people.

If that is true, then we need to have a professional head up the “people” department, so outsourcing HR until we reach the point when that role is justified as a full time position just makes sense.

For more information about OperationsInc’s HR Services, please contact Meghan Hopkins, VP of HR Business Development at or (203) 956-2572.