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What is an HR Outsourcing Company?

Juggling human resources responsibilities can be a significant challenge for businesses of all sizes. From employee onboarding and payroll to compliance and benefits administration, effectively managing HR tasks requires dedicated time and expertise.

By partnering with an HR outsourcing company, businesses are able to tap into services and support that help alleviate HR burdens, increase operational efficiencies, and give owners and their teams time back to focus on core operations.

In this article, we define HR outsourcing meaning, what HR outsourcing companies do, what services they provide, and why companies choose to outsource HR functions.

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What is an HR outsourcing company?

An HR outsourcing company delivers HR services and support to companies of all sizes and in various stages of growth. Some specialize in one area – such as processing payroll or recruiting – while others offer a range of HR services or comprehensive, full-service support.

G&A Partners, for example, is a PEO (professional employer organization) – a type of HR outsourcing company that provides comprehensive HR services and expertise. Focused on long-lasting relationships and the continued success of your business, our experts work to understand your business – so we can provide strategic support in addition to managing your HR tasks.

What does an HR outsourcing company do?

Whether you’re a small or mid-sized company that lacks time and resources to manage HR or a larger organization in need of HR assistance, an HR outsourcing company can take on some, or most of the HR responsibilities for your business.

They can also serve as a consultant on a project (such as revamping company policies) or they may contract with your business to manage some (or all) HR tasks over a longer period of time. In either case, working with an HR outsourcing company frees up you and your employees to devote more time to core business functions.

What are HR outsourcing services?

By partnering with a trusted provider for HR outsourcing services, you gain access to a team of experts who can handle a wide range of HR functions – including both day-to-day tasks and long-term strategic initiatives. This allows you to free up your valuable time and resources, while ensuring critical HR matters are handled efficiently and effectively.

HR outsourcing services can include (but are not limited to):

  • Payroll setup, tax filing, and reporting
  • Form W-2 & W-4 printing, filing, and mailing
  • Processing payroll cycles
  • Paid time off, vacation, and sick-leave accrual
  • Automated standard deductions
  • Garnishment, levy, and child support administration
  • Access to a web-based applicant tracking system
  • Job postings and description support
  • Access to pre-hire job assessments, substance abuse testing, background checks, and medical exams
  • Onboarding new employees
  • Buying power that provides greater access to top health care, dental, vision, life, short-term disability, long-term disability, and other types of insurance
  • Access to voluntary benefits and employee assistance programs
  • Onsite assistance for open enrollment and access to benefits-enrollment technology
  • Handling employee calls regarding coverage and claims
  • Administration of unemployment claims, COBRA, and 401(k) plans
  • Employee performance goal management
  • Streamlined performance review processes
  • Identification of employee competencies and skills gaps
  • Diversity, equity, and inclusion (DEI) program implementation
  • Workers’ compensation coverage and claims administration
  • Company policies and procedures development and implementation
  • Employee handbook development and maintenance
  • Safety training and onsite safety inspections
  • Post-accident investigations
  • OSHA assistance
  • Safety and risk management consulting services
  • Federal and state wage-and-hour compliance requirements
  • Antiharassment training for management and employees
  • Access to employment practices liability insurance (EPLI)

To learn more about HR outsourcing services and how they can benefit your business, contact our HR experts at G&A Partners.

Why do companies outsource HR functions?

Limited resources, time constraints, or a lack of in-house expertise in HR matters can hinder a company's ability to stay on top of critical responsibilities. This is where the HR outsourcing industry comes in. By partnering with a provider, companies can access a team of HR specialists who can handle a variety of tasks, freeing up valuable internal resources and ensuring compliance with regulations. Some business owners also seek out HR outsourcing providers to access high-quality, affordable employee benefits.

Additional reasons to consider an HR outsourcing partner include:

  • Looking for potential cost savings from outsourcing
  • Gaining advantage from economies of scale that professional employer organizations (PEOs) and others can provide
  • Accessing the latest HR technology
  • Streamlining processes and improving operational efficiencies
  • Scaling your HR while your company is growing
  • Ensuring compliance with workplace regulations and laws
  • Recruiting new employees
  • Improving employee engagement and retention

If you’re considering working with an HR outsourcing firm, it’s important to find one with a proven track record, strong client service ratings, and a commitment to helping your business grow and succeed. At G&A, for example, we are focused on providing the highest level of client satisfaction. As a result, our customer service ranks best-in-class and is about 2x higher than that of the HR outsourcing industry.

How Can G&A Help?

At G&A, we deliver world-class HR solutions that help build thriving businesses. We are committed to making a difference in the lives of you and your employees. To learn more about how G&A can support you, your business, and your employees, schedule a consultation.