HR departments are busy places. One major time-sink in HR departments can be dealing with compensation and benefits. Much like payroll can become a time-intensive undertaking, dealing with the complexities—both legal and mathematical—of the administration of these tasks can mean that your already busy staff become overwhelmed. What can you do when your HR capacity is already stretched to the limit, and you need to ensure you’re dealing with compensation and benefits in a timely and efficient manner?

You can outsource HR to get help with these tasks—and here are a few reasons why you should.


When you’re dealing with claims and things like sick leave payouts, you’re likely going to run into a whole host of legal issues surrounding them. Severance pay, benefit entitlements after retirement or during sick leave, and myriad other situations are governed not just by corporate policy; there’s also a legal framework around these issues, implemented by governments to ensure fair practices for both businesses and workers. With recent legal developments and the chance that new court rulings will affect how you administer benefits and compensation, the move to outsource HR can ensure that your firm acts in line with the current legal framework. That reduces the risk you’ll be held liable for unexpected costs or find yourself at the wrong end of a lawsuit.


Obviously, one of the largest advantages of outsourcing just about any task is potential cost savings, owing in part to more efficient delivery of the service. When you outsource HR for compensation and benefits, you are handing the task to qualified experts who have the best tools for getting things done. Their expertise and experience allows them to quickly and easily review cases, make decisions, and administer benefits or compensation. The tools they use to complete these tasks are also specialized for this kind of work, so tasks are completed swiftly, accurately, and easily. That means that things are done sooner, with less effort and fewer mistakes. That’s bound to save your firm some cash!


As noted, the decision to outsource HR for tasks such as benefit administration allows you to access expert knowledge and experience. The HR professionals you are turning these tasks over to have expert knowledge and plenty of experience, which allows them to move through tasks more quickly and with more precision than your in-house staff could. These experts are also using the best possible tools, perhaps specialized programs or administration systems, that facilitate them in doing their jobs. You could invest in this kind of technology for your HR staff, but implementation and training are likely to be costly—and it will take time to set up. The move to outsource HR tasks such as these makes perfect sense, especially when you consider that your staff already have plenty of other tasks they could attend to.


Your HR team is busy, which is one reason you may outsource HR functions anyway. When you outsource compensation and benefits administration, your HR team can focus on any of the other tasks they have on their to-do lists. In many companies, the decision to outsource HR functions is made to allow HR staff to focus on other tasks, such as benefit communication or the implementation of a health and wellness program. You may also want your HR team to deal with any number of other tasks, from payroll and policy review to staff training and legal compliance. Taking one more thing off the HR to-do list by outsourcing is likely a move your staff will applaud.

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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