Why Outsourcing HR Means Realizing Your Team’s Potential

Key Benefit #1: Deep, Broad, Cross-Specialty Experience

HR leaders who make a difference do so by pulling from a robust well of expertise.

Leaders best positioned to motivate teams and empower the staff ecosystem are those who’ve had the deepest and most varied experience. In other words, they’ve worked at companies of different sizes, in disparate industries, and at all stages of growth.

They’ve run through fire drills, navigated crises, and developed healthy cultures.

That expertise brings immeasurable benefits, but it usually comes with a hefty price tag.

And, for new companies especially, it can be hard to prioritize HR in budgeting—especially when “growth planning” suffers from vanity metrics.

Outsourcing HR gives brand-new companies access to top-line talent and decades of experience (no matter their maturity).

It provides young and veteran leaders with a trusted partner who can say: I know what your people need today, and I know what they’ll ask for tomorrow. 

That expertise also comes from an external, unbiased perspective (which can create a healthier dynamic between HR and the people the department serves).

Key Benefit #2: Connectivity, Creativity, and Collaboration

In every business environment imaginable, collaboration is a catalyst for growth. Yet, when absent, it can be an even bigger impediment to innovating, troubleshooting, and succeeding.

Outsourced HR professionals are experts at connecting teams and igniting collective creativity.

Creative problem-solving is one of the biggest strengths outsourced HR enables, and it comes from digging into relationships and helping people communicate more effectively.³

Too often, leaders and employees think of HR as a last resort, an enforcer of policies, or the department of “no”—a place they go to for reviews and bad news.

With outsourced HR well-versed in applicable laws, internal policies, and industry-wide best practices, HR becomes the department of “know.”

Leaders are keen to work with HR because they know that they’ll come up with optimal solutions through collaboration, and arm them with information that can help motivate certain individuals, create a safer space for others, and act on a central core value system.

³ Vantage Circle. The Transformative Power Of Creative Problem-Solving In HR. https://www.youtube.com/watch?v=f0j-JSj52SQ

Key Benefit #3: Support Through All Stages of Growth

Many companies start out with modest approaches to HR, dedicating the fewest resources possible or creating a patchwork of technological solutions on an as-needed basis (this patchwork can also be multiple people wearing the “HR” hat, which can quickly become toxic).

While that might “work” for the earliest stages of growth, it makes swift, sustainable success difficult.

Outsourced HR allows companies access to top-line HR functionality from very early on in their development, which builds a better foundation to build upon.

First off, it supercharges talent acquisition. Then it promotes culture (internally and externally).

Real scale is driven by talented, happy human capital—which outsourced HR provides in spades.

A recent piece in HBR charted the history of HR declining from champions of workers post-WWII to cost-cutting mechanisms in the 80s up until only recently.⁴ Effective HR, the authors show, depends upon supporting sustainable success by attracting and retaining talent.

⁴ HBR. HR’s New Role. https://hbr.org/2024/05/hrs-new-role