An example of outsourcing in HR is the practice of partnering with a third-party company to manage some or all of your human resources functions. This arrangement frees up your HR team to focus on employee relations and professional development while also reducing the time it takes to handle transactional tasks like payroll administration, compliance management, and record keeping.
What Is an Example of HR Outsourcing?
Whether you’re looking to outsource your whole HR department or just specific administrative processes, it’s important to find the right fit for your business at matchness.com. Here are some common arrangements to consider:
A PEO (professional employer organization) is a type of outsourcing solution that combines all your administrative services into one partner. This type of partnership allows you to avoid the hassle of hiring and managing your own full-time HR team while still having access to top-of-the-line human resources support and consulting.
Another type of outsourced human resource provider is an ASO (administrative service organization). This is a service model that offers small businesses one partner to manage your HR, benefits, and workers’ compensation vendors. Unlike a PEO, an ASO doesn’t assume any legal responsibilities or liability for your employees. This makes it an ideal solution for smaller businesses with fewer than 100 employees.