Outsourcing HR is a common strategy for all types of businesses. It is used by small businesses just getting started, and it’s used by large companies looking for ways to be more efficient in how they run operations.

 “Small companies routinely outsource their payroll processing, accounting, distribution, and many other important functions — often because they have no other choice. Many large companies turn to outsourcing to cut costs. In response, entire industries have evolved to serve companies’ outsourcing needs,” says all Business.

Outsourcing HR can also benefit your business for another reason – it can help you build and grow your company.


Outsourcing the HR function (or parts of it) during a growth phase can help you build your business the right way. Here are 4 ways it can help:

1. Save money:

This is the obvious and most common reason why companies choose to outsource HR during a growth phase. Saving money on HR and running efficiently frees up capital that can be invested to help the company grow. It also allows you to get the most out of your HR budget.

2. Flexibility:

Growth phases can be somewhat unpredictable. How quickly you will grow, which areas will grow, and where you will need to allocate resources can and will change frequently, requiring you have maximum flexibility. It can also help prevent you from hiring too many people or hiring too quickly as your company’s needs evolve.

3. Risk management:

As you grow, especially if you are a new company, you will be faced with new risks, and you also need to ensure you are in compliance with all government regulations. HR consultants can help you mitigate these risks and ensure you are compliant.

4. Focus:

Outsourcing HR allows business leaders to focus on growth and developing strategies to capitalize on the growth phase their company is experiencing. “Outsourcing can help your business to shift its focus from peripheral activities toward work that serves the customer, and it can help managers set their priorities more clearly,” says all Business.


Learn more about outsourcing HR by checking out these articles from our HR consultants:

3 Reasons Companies Love On-Demand HR

Outsource HR to Get Help with Compensation and Benefits

3 Ways Short Term HR Consulting Will Save Your Business Money

5 Reasons to Consider Customized HR Services

Felicia Smith

Felicia is the manager of human capital solutions at AugmentHR. With over six years of recruitment experience coupled with multi-faceted HR roles, Felicia is an expert in matching people with the right role and environment. She has worked in many different industries, including investment banking, HR consulting firms, medical, and commercial. Understanding people is one of her strengths, and she has recruited at every level, from directors, project managers, and engineers to operators and general labourers. Her ability to network and develop relationships has been a key tool to her success. With approximately two years of experience managing people and creating a positive work environment, Felicia’s diverse skill set makes her a well-rounded individual. Her business education and background help her identify different business needs and human capital solutions.

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