Services typically offered when outsourcing HR

When looking around the digital marketplace for potential contractors, you should first get some new perspective on how much human resources has evolved as a field of practice. It’s a far cry from how we might perceive HR or the stereotypes that we have for it, which probably includes endless piles of paperwork, nagging from HR staff to update employee records, or mandatory training and development-related seminars.

Rather, you should think about the HR specialists (HR firms, individual consultants, and the like) as catering to the global market with very dynamic and specialized wares. It’s actually a pretty exciting time to get into outsourcing, as there’s much to learn about the types of services, technologies, and support that are widely available to you. Some of the key services now out there are the following:

Payroll management

Payroll management encompasses keeping track of services tendered from your regular employees, and making sure that they are paid accurately, on time, at the prescribed intervals for payment. Say goodbye to mountains of payroll-related paperwork; the payroll management technologies that outsourcers have at their disposal are pretty awesome, as they can accommodate payroll data in real-time, using secure and up-to-date platforms.


Another service that a number of outsourced HR specialists offer is technical expertise on compliance. State and federal labor laws and regulations do change over time, and it will get hard to pin down, let alone fully understand, all of these amendments on your own. One of the key areas of study for these professionals is compliance and adeptness with rules that pertain to 401(k) plans and health insurance coverage in the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), for example. Proficient HR contractors can also conduct HR audits and operational reviews as needed.

HR system management

This is a service that doesn’t differ much from what we expect of in-house HR departments, which tend thick folders full of classified information. You can avail of an outsourced service to manage online employee databases, and thus accurately and safely keep all pertinent professional data on attendance, leaves, logs, travels, expenses, and the like. Your provider must understand the need for confidentiality and security in managing all human resource data.


You can also outsource for the specific function of recruitment or headhunting. Your provider can engage in vacancy monitoring for jobs within your company, start searches and job postings on relevant recruitment platforms, screen CVs, conduct interviews through Skype and other means—in general, focus on the task of finding new talent for your company.

Developing policy and collaterals

It’s also possible to seek technical expertise on deliverables that pertain to the survey of company HR policies and the assembly of HR-related collaterals such as employee handbooks, presentation decks, and the like.

These general services are the most likely available from outsourced HR firms, but there is also the option to look to consultants for some more specialized functions or services. These include (but are certainly not limited to) performance management, capacity building or training in focused areas, workplace investigation, strategic development, leadership training and development, and corporate coaching.


Comprehensive guide to outsourcing human resources

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