What You Need to Know About HR Outsourcing in the Wake of COVID-19

The functions of human resources professionals have shifted a bit during the COVID-19 pandemic. This is due in large part to the rise of remote work and other necessary adaptations that have been made over the past year and a half.

New approaches have been implemented, and that includes outsourcing. Many companies have even turned to HR outsourcing in this post-COVID-19 environment. Fresh ways of staffing and doing business can be jarring at first, but this article will offer some helpful information relating to HR outsourcing post-COVID-19.

How did COVID-19 affect businesses?

For many companies, COVID-19 put a dent in their revenue. It disrupted much of what they were trying to do and ushered in some monumental changes. Since businesses must adapt to survive, many decisions were made to offset that lost revenue and cut overhead costs. One of these decisions was the use of HR outsourcing in a post-COVID-19 environment.

Why are more businesses outsourcing?

We touched on it above, but one of the main reasons is to streamline operations and cut costs. In addition to human resources, companies are outsourcing other secondary functions like payroll, IT, the legal department and content writing.

Another side effect of COVID-19 was businesses reducing their office space. Since many people have demonstrated that they can ably work from home and still be productive, some businesses have opted to move into a smaller location. This might mean that there’s no longer room for a human resources department or IT specialists, so outsourcing those tasks becomes more palatable.

Why are businesses outsourcing HR services specifically?

There are several reasons why businesses are now outsourcing HR services, the first being cost, which we’ve covered. The second reason is specialization. If your business outsources its HR processes, it will likely be contracting with a company that has trained professionals who specialize in human resources.

Those professionals are up to date on all the latest laws, regulations and policies they must know, enforce and follow. Human resources is an important field, so it makes sense to want someone who’s well versed in that department.

The third reason is task management and efficiency. This dovetails with the specialization piece mentioned above. An HR professional who works for an HR consulting agency will be proficient in handling all the various documents that an employee must fill out or the company must have on file. These include the I-9, W-2 and W-4 forms.

An HR professional also likely has experience in drafting an employee handbook. Because of this, they should be able to compile all your company’s policies (and help you draft said policies) into one clean and neat booklet that’s accessible to all company employees.

The fourth reason companies are outsourcing HR services is that it’s one less thing that a manager has on his or her plate. The president or CEO of a company likely wants to focus on business growth and revenue generation, not spend hours managing HR duties.

Call for HR services today

If your company needs to outsource HR processes post-COVID-19, give us a call at Windsor HR Services, Inc. We’ve been providing HR services for over 20 years, and we offer comprehensive HR solutions to businesses of any size and in any industry.