Finding someone who can "do it all" in HR can be challenging. HR outsourcing offers expert advice to support long-term growth, especially for employers not yet sized to justify an additional staff position.
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Which is true? A human resources manager:

  1. Runs payroll and sends out tax statements
  2. Performs mission-critical tasks that keep companies, employees and teams running smoothly
  3. Both

The answer is "both," of course. As you know, HR roles are crucial and multifaceted — and must evolve as businesses grow and change. For example, a small business needs HR basics, like managing sick time and paid time off. However, as organizations add employees and face complex regulatory needs, demands on HR teams accelerate, requiring enhanced capability.

Finding someone who can "do it all" in HR can be challenging. That's why many organizations consider outsourcing some — or all — of their human resources needs. This strategy supports your long-term organizational wellbeing. HR outsourcing provides a viable means for you to access expert advice, especially when your organization hasn't reached a size to justify an additional staff position.

Understanding comprehensive HR functions

Consider an organization with 100 employees. A successful HR manager for an organization of that size must handle many administrative pieces associated with managing that headcount. Examples include new-hire paperwork, benefits administration and payroll.

But what happens when your 100-person company grows by 50 or even 100 employees? At that point, senior leaders may proactively want to shape company culture or encourage professional development. Your HR manager then must become a coach and mentor to help counsel and grow employees professionally.

A successful human resources leader also handles recruitment when your organization needs to fill vacant positions. The organization may expand into new geographies or identify new roles. On top of that, HR professionals must address employee relations issues, from personality conflicts to discrimination or harassment claims.

The HR business challenge lies in finding someone who excels at all those tasks. Identifying an individual skilled and focused on one area may mean that person needs to catch up in other areas.

Filling your HR gaps with outsourcing

In such circumstances, savvy employers turn to an HR outsourcing strategy. This service allows your HR staff to focus on areas that match their skills, interests and capabilities. You can then outsource the remainder of your human resources needs to outside professionals.

For example, some organizations decide to keep the administrative component of HR in-house. Others may outsource payroll and benefits while their HR manager deals with culture or professional development.

Specific HR outsourcing services

Think about HR functions as a yardstick. Dividing up those 36 inches dedicates the first 12 inches to cover the tactical side of human resources. Inches 13 to 24 address the administrative aspects of the job. The final foot encompasses training and employee advancement.

Your HR manager may excel in one segment but needs more expertise in another. That doesn't mean your HR manager isn't capable. It simply means few people have the capabilities to span all the skills on the yardstick at the same high level.

An HR outsourcing partner helps diagnose your organization's challenges and needs. This partner identifies your gaps and recommends appropriate HR outsourcing services, which may include:

  • HR audits and assessments
  • HR compliance
  • Compensation and benefits
  • Payroll
  • Inclusion and diversity
  • Managed HR (handbooks, exit interviews, onboarding)
  • HR strategy
  • Recruiting
  • Training

When looking to outsource HR, consider where you want to perform optimally. Assess your current resources and identify what HR functions you can perform comfortably in-house. HR outsourcing services can then handle what remains.

Benefits of outsourcing HR functions

HR comprises multiple areas, ranging from payroll and tax compliance to training and retention. Outsourcing HR functions, such as compensation plans, helps focus your in-house HR professionals on growing your business. The advantages of outsourcing HR functions include:

  • Reducing staff turnover and increasing employee engagement
  • Increasing your ability to attract top human resources talent when you add future staff
  • Ensuring you stay current on tax laws and pay transparency requirements, sparing your organization from potential legal jeopardy

Why Gallagher provides leading HR outsourcing services

Gallagher provides customized, comprehensive and cost-effective human resources, payroll and recruiting services to build HR success through HR outsourcing, not replace HR professionals.

Gallagher's Human Resources and Organizational Effectiveness team delivers the expert guidance and hands-on HR support you need to grow your organization. Whether filling skills gaps or taking on entire functions, we design and deliver tailored solutions that meet your organization's unique needs.

The Gallagher team operates only where we add value. We inform employers when it makes sense for your organization to bring a function back in-house, and we can help manage that process.

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Disclaimer

Consulting and insurance brokerage services to be provided by Gallagher Benefit Services, Inc. and/or its affiliate Gallagher Benefit Services (Canada) Group Inc. Gallagher Benefit Services, Inc. is a licensed insurance agency that does business in California as "Gallagher Benefit Services of California Insurance Services" and in Massachusetts as "Gallagher Benefit Insurance Services." Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice.