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To Outsource or Not to Outsource Human Resources?

How do you know if there’s an HR problem?  And what do you do about it?

Outsourcing Human Resources

Should you outsource HR? Before deciding whether or not to outsource HR, let’s first define the problem.  Does any of this sound familiar?

  • Are you frustrated with expensive health insurance options?

  • Did you get a huge renewal rate on your health care?

  • Do you have employee issues crop up that you don’t have answers to?

  • Are you working evenings or weekends doing routine HR tasks, like payroll, taxes, or compliance paperwork?

  • Are you ignoring HR issues and hoping they don’t turn into something costly?

  • Where do you turn for answers on HR issues?

  • What happens when your business grows?  Can you handle the hiring, employee lifecycle, and compliance needs at scale?

HR Outsourcing Options

If none of the above questions sound familiar, great!  You’re doing an excellent job of handling HR for your business.

However, if any of those points ring true, then it might be time to look for HR outsourcing options.  So what are the options?  Here are a few choices:

Status quo.  Keep doing what you’re doing!

Find an insurance broker.  The insurance broker can help if your concerns are only around health insurance rates.  He or she may be able to find better options to insure your employees.  That said, an insurance broker is not designed to help with HR, payroll, or safety.  Which means you’ll need to find support in another company for those issues or struggle with the broker's “add-on” HR services.

Find a payroll provider.  There are many good organizations that can serve your payroll needs.  And, while some offer services that include HR, that is not their core competency. You may get payroll processed and struggle with other needs.

Find a staffing agency. Again, some organizations are built around recruiting, hiring, and onboarding new employees.  And, while they may be very good at that, they don’t have the bandwidth to handle the full HR spectrum of skills.

Reach out to a PEO.  PEOs are uniquely suited to handle all of your outsourced HR needs, including payroll, benefits, workers’ comp, and risk management.  And they are specifically designed to meet the needs of small to mid-sized businesses. For more, visit About PEOs.

Bill Senior Payroll Administrator Axcet HR
Beth Foulk Marketing Director Axcet HR Kansas City
Herman Payroll Administrator Axcet HR Kansas City

The pros and cons of outsourcing human resources.

Many small and medium businesses find their resources stretched thin, so they choose to double down on their strengths and outsource other tasks to outside experts. If you’re debating outsourcing human resources for your business, learn the pros and cons in this video.


Outsourcing HR Frequently Asked Questions.

A few frequently asked questions – and answers – for those interested in learning more about outsourcing your human resources to certified* pros.

HR outsourcing is a contractual agreement between an employer and an external third-party provider whereby the employer transfers the management of, and responsibility for, certain HR functions to the external provider. Many types of HR outsourcing options are available to employers.

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Human Resource Outsourcing is a process in which a company utilizes the services of the third party to take care of its HR functions. ... HR outsourcing helps an organization to gain cost and time efficiencies and provides cutting edge over their human resource strategies and improves services to their employees.

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Here are the HR functions that are most commonly outsourced:

  • High-volume recruiting.
  • Temporary staffing.
  • Background checks and drug screening.
  • Relocation.
  • Payroll.
  • Benefits administration.
  • Coaching.
  • Creating/updating employee handbooks and policy manuals.

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By outsourcing, you are paying for what you need, not paying for what you don't need. Whether it is a contract that spells out what you are getting or an hourly rate, you will end up paying less for the service than someone you have to pay a salary too. You will also save on the cost of benefits and payroll taxes.

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Organizations that focus solely on providing HR services will have much more advanced technology and processes in place to provide those services. Outsourcing your HR functions to such an organization can help to streamline your HR processes, resulting in more effective and efficient HR management and administration.

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Pros and cons of HR outsourcing

Pros of HR outsourcing:

  • Saves money. Small companies and start-ups usually can't justify the expense of hiring a full-time HR employee. ...
  • Allows staff to be more strategic. ...
  • Vertical expertise. ...

Cons of HR outsourcing:

  • Reduced human touch. ...
  • Loss of in-house expertise. ...
  • Less availability.

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Expertise You Can Use Now

The Pros and Cons of Outsourcing Human Resources

Perhaps we only have two hands because we’re only meant to do so much at once. Companies are made up of a finite number of people, and people have limitations. That means you should carefully consider ...

Staying Afloat: Options When the HR Flood is Overwhelming

Human Resources (HR) encompasses a lot. Even a fully staffed HR department might have trouble juggling all its demands, which include issues like managing payroll, handling harassment complaints, navigating the murky waters of ...

PEO/HRO – What's HR Outsourcing? What's a PEO? How to select a PEO.

Time to Outsource HR
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Is it Time to Outsource HR?

According to a Gartner Inc. study, 80% of businesses currently outsource at least one HR function. But how do you know when it’s time to outsource your company’s HR? Our experts share seven questions to guide your decision in our free whitepaper.

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What services should we outsource?

Have you decided to outsource your business’ HR? You’re not alone. In fact, 80% of companies now outsource at least one HR function, and that number is quickly growing. Find out about the top six HR functions mid-sized companies outsource.

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Transitioning to the HR Outsourcer

One of the top functions small & mid-sized business owners outsource is their organization’s human resources. From compliance and payroll to recruiting and hiring, HR is mission critical. It requires specialized expertise and daily attention. Find out eight goals for transitioning HR services to a third-party provider.

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5 Types of HR Outsourcing

According to a Gartner Inc. study, 80% of businesses currently outsource at least one HR function. But how do you know when it’s time to outsource your company’s HR? Our experts share seven questions to guide your decision in our free whitepaper.

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Understanding the Outsourcing Agreement

When you partner with an outsourced HR company for your business' HR needs, you are entering into a contractual agreement that, when properly designed, should set the stage for a successful, long-term relationship. Find out six must-have components of your outsourcing agreement.

Why Axcet?

PEO client onboarding meeting with Axcet HR Solutions in Kansas City

Let’s face it.  When it comes to HR administration, you have choices.  So, why choose Axcet?

We believe in trust, relationships, and an undying commitment to our clients’ success.

At a time when you need peace of mind and a trusted advisor to help you make tough choices, our experience and expertise as a Certified PEO can give you the confidence to focus on growing your business."

We believe that our HR support and expertise can help your business scale and grow in ways you couldn't have imagined. As a trusted advisor, we are dedicated to helping your company succeed and thrive.

Many companies offer HR support, but we go above and beyond to ensure that your business has the resources and guidance it needs to reach its full potential.

If we sound like a company you’d like to partner with, let’s talk.

Lacey Kansas City Human Resources Consultant at Axcet HR Solutions

HR Blues? Let's Talk.

Our veteran team of SHRM-certified human resources consultants and our access to employment law attorneys provide your business with unparalleled HR expertise. Add Axcet's HR team to your bench so you can get back to what matters. Reach out today.

Axcet HR Solutions
Axcet HR Solutions
21 Google reviews
Kevin Anderson
Kevin Anderson
May 22, 2023.
Having the HR expertise to help in difficult situations. And being able to make a call and get the correct info quickly. Health insurance is a pain! but Axcet is a big help!
Shana Crockett
Shana Crockett
May 16, 2023.
Our Axcet team is the best! Herman and Laura are great at what they do and very knowledgeable.
Lance Edward
Lance Edward
May 16, 2023.
The team at Axcet is amazing!! They are always ready and willing to help out anytime we need them. I would highly recommend them to any business. It's a huge relief for us, knowing the answers we need to keep our business moving forward are just a phone call away.
Cheryl Baldus
Cheryl Baldus
May 11, 2023.
The staff is wonderful!!
Frank Blanc
Frank Blanc
May 3, 2023.
Axcet staff is knowledgeable and helpful. They allow me to focus more on operating my business.
Kyle Bruce Arms
Kyle Bruce Arms
April 26, 2023.
I am very impressed with these guys, especially Kelly. I was in need of urgent assistance regarding my W2s from a job and got service and help that day. You know someone cares when even though they got nothing for helping me, they gave A1 service like I was any current client. True HR! Thanks Kelly!
November 28, 2022.
I have found that I have a problem with the computer program in part because I have macular degeneration in both eyes and double vision in my right eye. It is frustrating that I am asked to rate this program before I even get logged in.
Haely Goodpasture
Haely Goodpasture
November 17, 2022.
Axcet is a great company. The best actually.

Schedule a consultation with Axcet today.

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