Is Outsourcing the Solution for Your Organization?

The principal benefit of outsourcing is not cost reduction.

For many businesses that lack the time or resources to manage HR functions, outsourcing is a cost-effective alternative to hiring another person. It certainly can and should lower cost but has several other important benefits, such as:

1) Lowering the risks of noncompliance; and

2) Increasing employee satisfaction by offering new solutions to work more effectively.

When pointed out, these benefits are obvious. However, most people — especially those outside of HR — still view outsourcing as a cost-saving strategy only.

Some immediate facts about outsourcing:

• Fact: Outsourcing improves compliance.
• Fact: Many tasks are done better by outside vendors.
• Fact: Outsourcing provides services not offered internally.
• Fact: Outsourcing improves accuracy.

As more companies downsize their HR resources to adjust to the current economic downturn, they're also considering other methods to remain competitive. Outsourcing business processes is an increasingly popular way to improve your company’s basic services while allowing HR professionals to concentrate on their core business.

Does your HR staff answer the same benefit questions over and over? Do you call your health plans often for employees to resolve problems?

If you answered "yes," then outsourcing certain business processes might make sense for you, too. To discuss a partnership with The Benefit Advocates, contact us at 1-800-344-5677.

Linda Carter, Manager of Client Services, The Benefit Advocates