HR outsourcing is when organisations contract out their HR functions to an expert company. Businesses can choose to opt for a full service, where everything from recruitment to pay and disciplinary procedures is managed or they can pick and choose the HR outsourcing services they need, such as the development of employee handbooks or managing redundancies.
The exact service that a company chooses will depend on issues such as their size, sector, staffing level and budget, and bespoke HR packages can be tailored to each organisation. Many businesses find that outsourcing some or all of their HR functions brings a number of benefits.
A 2009 survey for the CIPD found that the top three reasons cited for using HR outsourcing were access to skills and knowledge, quality and cost reduction. We take a closer look at these benefits and more.
