A growing majority of organizations rely on human resources outsourcing to manage the administration of human resources.

This practice can often be a more cost-effective way to ensure that all personnel matters are handled responsively and professionally by a team of human resources specialists that have the training and expertise needed to get the job done, In addition, outsourcing of human resources processes can save companies significantly because there is no need for an in-house team.

Outsourcing human resources work is a practice that many small to medium sized businesses use to save time, money and get a larger range of services that will adapt to a growing organizational structure. For many companies, contracting a portion of services to an independent human resources consulting firm makes good business sense.

Human resources consultants can handle some or all of the human resource administration such as payroll, recruiting, or training needs of the company so that leaders can focus on running the business. In this case, the consulting firm creates custom solutions that will best support the needs of the company, without trying to take over any of the operational aspects.

Administrative areas include, but are not limited to: Record-keeping (personnel files, etc.) Compensation/pay equity Employee relations Performance appraisal systems Policies and procedures/employee handbook Terminations