Topic Outsourcing HR / PEO

Outsourced HR: Who Does it Benefit?

Outsourced HR: Who Does it Benefit?

The HR outsourcing market is expected to grow to nearly $250 billion by the end of 2026. Business leaders realize how much an outsourced HR team can benefit multiple departments in their companies.

Enforcing HR duties and protocols can put a lot of stress on you and your employees. Outsourcing these tasks makes everyone's life easier, regardless of the department.

Human Resources

One negative thing some company leaders believe about outsourcing is that it takes jobs away from their current team members. While some companies may choose to use this approach, this is not always the case. Instead of replacing your HR team entirely, you can introduce outsourced members to work alongside your in-house HR staff.

Doing so will put your current team in a better position to perform HR duties. Having a few qualified HR pros on your team can help your existing HR staff keep up with administrative responsibilities. 

Learn more about HR strategy for business performance

It also gives your in-house HR staff greater flexibility so that they can focus on other things, like company culture. A comfortable, healthy work environment attracts top talent, which will ensure the success of your business. 

IT Department

Professional outsourced HR employees can help your company's IT staff perform their jobs more efficiently. Outsourced HR will consolidate your company's tech stack in a way that every employee can understand. With this streamlined software, your current IT professionals will be able to repair technical issues quickly and easily.


Outsourcing HR opens up amazing opportunities for your employees, particularly access to better benefits packages. These health benefits can include:

  • Medical
  • Dental
  • Vision
  • Prescription coverage
  • Disability insurance
  • Return-to-work programs
  • Life insurance
  • Retirement plans

Additionally, a qualified team of outsourced HR members will respond to any unemployment or workers' compensation claims quickly and professionally.

A good set of health benefits will give your employees peace of mind and encourage them to stay with the company. Recent studies show that employees are more satisfied with the administration and healthcare plans from a company that works with an outsourced HR partner.


An outsourced HR staff will handle many of the administrative burdens related to payroll. They will ensure that every employee has access to their pay stubs and are properly compensated for hours worked. They will also calculate all withholding on paychecks.


Working with the right HR outsourcing partner can return an outstanding ROI. According to one study, HR outsourcing clients saved an average of $1,775 per full-time employee. A large portion of these savings came from not having to provide extra HR personnel with a full-time salary and benefits.

Everyone Benefits When Leaders Outsource HR

Because of everything it handles, a top-notch HR department is crucial for any business. If your current team lacks the required expertise, it's time to reach out and begin the outsourcing process.

Outsourcing doesn't eliminate anyone's job, nor does it mean a financial strain for the company. Instead, it reduces the stress of HR duties in each department and contributes to better workplace culture. Working with qualified outsourced HR partners is a win-win for all parties involved.

How the Right HR Outsourcing Partner Brings you Closer to Your Dreams

Derek Carlstrom

Derek Carlstrom

Derek is the Vice President of Sales Growth. He is a proactive leader with refined business acumen and exemplary people skills. He has progressive experience in sales leadership with the skills to drive business growth, capitalize on new revenue potential, and execute proper territory maximization