challenges of HR outsourcing

Challenges of HR Outsourcing and How to Overcome Them

Human resources are essential to the success of any business. HR is responsible for everything from hiring the correct team members to developing necessary rules and activities to ensure employees’ well-being. However, because HR outsourcing tasks can be intricate and time-consuming, firms may struggle to assemble a skilled and attentive workforce. As a result, many firms rely on third parties to efficiently manage their HR outsourcing concerns.

While it can relieve corporations of the burden of managing multiple operations on their own, it can also cause stress if unanticipated obstacles arise.

We will examine eight major challenges of HR outsourcing that firms experience in this blog. We’ll also talk about how businesses may deal with these problems and make the most of dependable HR outsourcing.

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1. Detachment From Staff

For diverse operations, each organization has its own culture and protocol. And, no matter how critically a third party evaluates an organization’s activities, it cannot fully comprehend its requirements.

Employees may believe that their concerns are not being addressed as a result of this disconnection. Employee satisfaction and retention may suffer as a result of the divide between employees and HR.


To address this issue, you must hire the best among the various HR outsourcing companies in India for your firm. The better they understand your organization’s needs and culture, the better they will address employee complaints. This, in turn, will increase employee happiness, which will boost performance and productivity.

2. Compromise on Organizational Culture

Organizational culture is critical for ensuring employee happiness and maintaining strong morale. When firms outsource their HR activities, they affect the culture that their employees are accustomed to.

Employee productivity may suffer as a result of employees’ familiarity with a certain organizational culture. Adapting to new requirements and ambitions can make them feel less useful and out of control. Furthermore, due to the new changes, workplace politics might upset employees’ peace of mind.


To address this issue, make sure that at least one member of your HR team is from your own organization. This individual will then be able to communicate your organization’s culture and requirements to the third-party team. This ensures that the outsourced operations are consistent with the culture, making staff feel included.

3. Inflexibility

When you have in-house HR specialists, you have more options for accommodating employees’ issues. This is because they may be more familiar with the personnel than any third-party resource. Furthermore, employees may feel more at ease expressing their concerns with someone from their own company.

Furthermore, because third-party resources do not have a deep bond with employees, they may be more dubious and hesitant to listen to their problems. In the long run, this may have an influence on employee morale and productivity.


To counteract this issue, your HR team should include a solid balance of third-party and in-house personnel. Because in-house personnel would know the employees on a personal level, they will be able to voice their concerns and ensure that employees are satisfied. This allows for a more adaptable approach to HR operations.

hr companies in india

4. Delays

Because a third party will be in charge of critical organizational functions, even routine procedures may be delayed significantly. Each organization has its own protocols and processes, which other parties may take too long to grasp.

As a result, routine processes such as hiring new personnel and delivering salaries can take months. These delays can irritate employees and have a negative influence on their performance. Third parties may also conduct multiple actions.


To address this issue, you might hold training sessions with third parties before handing over management of your business. Third parties will be able to move more quickly if they have a deeper understanding of your operations. Going through customer reviews to learn more about the third party’s relationship is also beneficial. You should carefully select a service who meets deadlines and produces high-quality work.

hr outsourcing company in India

5. Less Organizational Control

Human resources is a critical area for businesses. Furthermore, delegating this department’s responsibilities to a third party may necessitate relinquishing authority over various processes. This can have an effect on operational transparency and visibility.
Because you will not be in charge of day-to-day operations, you will lose sight of how they may be working. Employees may get dissatisfied with the processes, and you may be unaware of the situation.


To fight this issue, obtain a weekly report on all HR operations. You will stay on top of things this way. If you are dissatisfied with how processes are operating, you can voice your concerns to a third party. You can also solicit employee input on workflows and address their complaints as soon as possible to ensure satisfaction.

6. Fewer Choices

Depending on company budget and policy, you may provide a variety of benefits to your employees. If you outsource operations to a third party, they will have their own set of policies and benefits to provide to staff. While they may be wonderful in some situations, they may not be in others.

One of the key reasons could be financial limits. As a result, they may not offer appealing compensation packages to employees. This will have an effect on staff satisfaction and performance. Employees may leave in severe situations if they are dissatisfied with third-party packages.


Organizations have little control on third-party software. They can, however, provide additional perks to employees in addition to the packages. Employee satisfaction and loyalty will improve as a result of this. You can also express your concerns to the third party and work out a solution with them to remedy the situation.

7. Compromise on Security

Employee data can be exposed to attacks and breaches if your organization’s software is not protected. Many third parties undertake HR functions using free and open software, exposing confidential employee data to security threats and breakdowns.
A security breach can be extremely detrimental to an organization’s employee and customer data, as well as its own reputation. And relying on untrustworthy third parties can jeopardize your operations and privacy.


It is always preferable to engage third-party HR service providers who use secure software. Set up methods for receiving feedback from prior customers to verify that they use secure networks and software.

8. Expensive Option

Finally, while HR outsourcing challenges may relieve you of the burden of managing several businesses, it may also be an expensive alternative. This is due to the fact that they will have plans and norms in place for managing workflows and processes.
Furthermore, if your firm has particular needs, they will incur additional charges. This might wreak havoc on your budget and end up being a costly alternative in the long run.


You can overcome this problem by first creating a budget and then outsourcing your HR activities based on it. It would be advantageous if you also have some buffer to account for unanticipated tasks and additional operational expenses.


Hope these solutions help you in fulfilling all the roles and responsibilities of the organization concerning the HR department. Bring out great productivity in your organization through these suggested tips and solutions. We, at Transpire Payroll Management Solutions are here to help and manage your HR services in the best possible manner and leave you stress-free.

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payroll management

What Makes Payroll Management Your Best HR Partner?

As a result of the rapid change in how we operate and the resulting new opportunities and unforeseen difficulties, many business executives are feeling overburdened by the magnitude of the issues involved. Because of the global labor shortage and the ongoing changes in employment laws, it is becoming more difficult to retain personnel. HR leaders must therefore find fresh approaches to ensure that their company stays a successful, competitive employer.

More than ever, HR teams need assistance in developing a strong human resources department that engages staff while generating revenue. One support group for HR is the payroll group. HR and payroll may initially appear to be very dissimilar concepts. At every point of the employee lifecycle, there is power in the intersection of these two corporate roles.

The opportunity for HR and Payroll to collaborate more closely to build a high-performing function exists with an emphasis on integrated global payroll and HR systems—and the technology that supports integration. HR is currently in a better position than ever to handle change because of cloud-based technologies that enable payroll data to inform and support real-time choices on compensation structure, benefit alternatives, and labor requirements.

Payroll Managers as Your Best Partner

HR can easily work through their roles when payroll responsibilities are handled by the payroll services providers. HR management includes a lot of responsibilities, such as—recruitment, HR interviews, attendance management, formulating the KRA, and many more. The rest comes under the payroll management responsibilities, which include a lot more responsibilities. Be it a big or small organization you have a lot many things to do in the organization related to the payroll management which can be better handled by the  payroll service providers. 

So, let’s take a look at the key roles of payroll service providers in India and how we can help you out.

1. A competitive pay structure built on payroll data

HR teams cannot conduct a competitive pay study or guarantee their pay rates are equitable without accurate pay data. However, by working together with Payroll Management to obtain insight into pay data, our HR is better able to attract top candidates, retain top talent, and show the organization’s commitment to pay equity.

Based on data analysis of the organization’s pay rates, support from payroll can assist in guiding and developing a competitive pay structure. Payroll data analysis insights can also assist HR in determining whether the company is effectively compensating employees for their efforts or whether there are any gaps that need to be filled as part of a larger personnel strategy.

An efficient collaboration between HR and Payroll is crucial for putting money in employees’ pockets. Any step in the data entry and transfer process might cost money if done incorrectly. An integrated solution reduces the likelihood of error while also streamlining procedures for the Payroll and HR teams. They can get trustworthy personnel data from a single, centralized source since they collaborate as partners and frequently exchange employee records.

2. Manage Costs While Offering Innovative Benefits

Furthermore, an integrated strategy for HR managed services and payroll systems enables decision-makers to compare compensation data to other employee-related costs, such as benefit packages. One of the most effective strategies a business can use to recruit and keep talent is to offer innovative benefits, and HR directors today are aware that they need to make constant adjustments to their benefit packages in order to keep talent.

According to studies from HR Magazine, benefits “often account for between 12% and 18% of a company’s payroll and have weathered the test of time, suggesting they are more than a hygiene element.” “Newer firms do consider them as strategic, even though historically some organizations have not given much thought to what they offer.”

However, HR cannot develop creative benefit programs on its own. Data and strategic planning between HR and Payroll are necessary for planning and funding these benefits. For instance, many businesses lure young graduates to join their business by providing benefits for repaying student loans. HR runs the risk of underestimating the cost and maybe setting plans that they can’t keep if they don’t work with Payroll to understand the costs related to this perk.

Our payroll teams can present prospective prices for various benefit offerings as part of HR’s planning cycle so that HR can choose the best solutions based on employee interest and the budget at hand. Similar to this, HR and Payroll can collaborate to make sure benefit plans stay within budget and deductions are calculated correctly to prevent expensive penalties. Payroll can aid in forecasting future expenditures and assist HR in making changes to what the company offers if benefit plans start to become too expensive.

3. Meet Global Employment Regulations and Requirements

HR can enhance performance in terms of adhering to international employment regulations by collaborating with Payroll to stay updated on current issues. In addition to HR issues, complex labor regulations are sometimes the subject of employee litigation. HR executives can keep track of legislative revisions and guarantee compliance with the assistance of international payroll professionals.

Understanding compliance with regard to compensation, especially final payment after employment ends, is crucial for HR professionals working with global CEOs to develop personnel strategies. A solid working relationship between HR and Payroll opens up possibilities for process modifications that enable accurate, efficient data transmission when employment terminates. It’s crucial that the company abides by the rules and makes sure the employee is paid correctly and on time at that point, possibly more than at any other. Once again, integrated, single-source technology considerably reduces the possibility of expensive errors, which is crucial when employment terminates.


HR professionals have a fantastic opportunity to work with Payroll Management to interpret the data that is available, then use that data to make sure the company is aware of what is needed for a competitive and equitable compensation structure, cutting-edge benefit options, and compliance with employment regulations. HR and Payroll can become strategic partners in assisting their organization’s success in attracting and retaining the best personnel if they look for methods to collaborate in order to favorably impact the employee experience.

Also read: International Payroll Outsourcing: A Guide for Multinationals

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hr outsourcing companies in India

The Top Elements of HR Outsourcing

A company’s human resources department is essential. Payroll management to employee conflict resolution are just a few of the diverse elements of HR outsourcing and jobs that HR staff handle. Some businesses decide to contract with other businesses to handle all or a portion of their HR duties. Learn about HR outsourcing, the many types of HR outsourcing, and which particular HR duties are appropriate for outsourcing before deciding if this is the best option for your business.

What is Meant by HR Outsourcing?

The practice of outsourcing HR involves having an outside firm take care of a company’s or organization’s internal HR duties. While some HR outsourcing firms handle a single task at a time, such as managing benefits or processing payroll, others handle multiple tasks simultaneously.

When Does a Business Need to Outsource HR Services?

Every company’s leadership makes a unique decision on when to outsource HR. When the costs of keeping an internal HR department are too high, when healthcare benefits packages are too expensive with insufficient coverage, or when the business is experiencing a period of high-volume recruiting and onboarding, executives frequently decide it’s time to outsource.

These key elements are available to businesses that decide to outsource their HR division:

1. Improved executive focus

Instead of handling changes to healthcare coverage, payroll concerns, or other HR challenges, business leaders may focus on high-level company development.

2. Saves a penny

Companies can use the salary savings from fewer HR professionals to expand the organization or hire additional people who are directly relevant to their mission.

3. Better benefits

Because they cover a lot of people, HR outsourcing companies in India frequently receive better, lower prices for healthcare and other benefits. Then, they can provide their workers with better perks.

4. Minimized hiring costs

Particularly for a business with a small team, hiring a new employee might be expensive. The onboarding process can be handled by the HR outsourcing provider for less money and without taking away from the recruiting company’s time.

5. Legal compliance

Compared to most businesses that don’t specialize in HR, HR outsourcing providers manage legal compliance issues including workplace safety and information management better. Legal compliance is ensured by using an HR outsourcing firm.

HR managed services

HR departments frequently handle a variety of tasks. Companies that offer HR outsourcing services can help with all or some of the following tasks:

  • Background investigation
  • Processing of payroll and other services
  • Assessment and control of risks
  • Employing temporary workers
  • Assistance to employees and counseling
  • Benefits of life and health insurance
  • Services and preparation for retirement
  • Management of employee performance
  • A drug test
  • High volume of hiring
  • Worker relocation
  • Employee mentoring
  • Keeping up with new onboarding materials
  • Planning and carrying out affirmative action
  • Training on sexual harassment
  • Independent compliance

Types of HR outsourcing

Depending on the size and demands of the company, one or more of the following types of businesses can handle the outsourcing of HR functions:

1. Human Resources Organization (HRO)

The majority of HROs deal with big businesses that have thousands of employees. Companies can select which HR-related tasks they would like to outsource and which ones they would like to keep in-house using the HRO model. Even if a company outsources all of its HR-related duties, it frequently keeps at least one internal HR representative to act as its liaison with the HR outsourcing firm.

2. Professional Employer Organization (PEO)

With 200 employees or fewer, small to midsize businesses typically find PEOs to be most beneficial. The PEO’s engagement with the hiring company extends beyond just HR duties. The recruiting company continues to be the on-site employer, while the PEO becomes the employer of record. The businesses share employees in a co-employment arrangement. Along with handling payroll, hiring, performance reviews, and other HR duties, the PEO also takes care of the business’ taxes and any workers’ compensation claims. With the supervision of a major PEO, small businesses get benefits with minimal risk and low expense.

3. Administrative Services Organization (ASO)

Mid-sized companies with between 50 and 1,000 employees are frequently served by ASOs. Businesses are typically served by ASOs for administrative HR needs. They do not provide co-employment, in contrast to PEOs. Along with other administrative HR responsibilities including processing payroll, gaining access to insurance, and managing safety, ASOs will help businesses with employee inquiries, workers’ compensation, and legal compliance.


Having outsourced the services of HR saves you a lot of money and time, so that you can take care of your business more actively. Not just that HR is a broader term which should be given to the more expertise company and not just concise in a small department. So, enjoy happy hiring and employee retention through outsourced HR services. Get all the services of human resources managed by the expertise of our top payroll outsourcing company in India and you just relax!!!

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hr industry trends

Top HR Industry Trends to Look for in the Year 2022

In 2021, the Great Resignation has had an impact on practically every industry. Today, many HR directors are at a crossroad: how can we attract, retain, and engage the talent we need to succeed? To  cover up all these things, HR managed services are needed. They need the expertise of the HR outsourcing companies to look after this.

However, as companies begin to plan for 2022, many are turning the Great Resignation into a Great Opportunity.

To keep employees engaged in the coming year, HR departments expect to leverage increasing HR industry trends like digital transformation, mental health and employee welfare, people analytics, and workplace flexibility. And they’ll be doing it all with dwindling HR pennies.

Let’s have a look at the HR industry trends that human resource leaders should be aware of in 2022!

1. Navigating the Great Resignation Landscape: Top HR Indsutry Trend for 2022

The workforce was looking for new possibilities. Lower levels of employee engagement, according to the corporation, are the main cause behind so many notifications.

In the face of a widespread labor market departure, acquiring and maintaining talent will be a desirable commodity in 2022. Companies, on the other hand, will have to go much beyond employee engagement to retain their frontline personnel in the future.

The companies sought to better understand what employees – particularly frontline workers and their managers – wanted at work in 2021. 

The 2022 Frontline Trends Report delves deep into what critical personnel are seeking for – and what is stressing them out. The top concerns of the employees include late shift changes, difficult working conditions, and low earnings.

Companies who want to keep their best employees must meet them where they are. As a result, firms are taking rapid action when it comes to compensation.

In addition to pay, employers are doing the following:

  • Implementation of the digital transformation in HR, thus eliminating inefficient processes and saving HR departments the time and money incurred.
  • Conditions of the workplace are transforming as a consequence of improved facilities with new protocols, and safety training.
  • Adopting shift scheduling software to make more predictable and accessible schedules.
  • Streamlining technologies at the workplace to make the life of the frontline workers simpler.

Frontline workers want more information on when and why things change. So let us hand it over to them.

In this situation, digital frontline staff communication will be vital. The great majority of front-line workers do not have access to a work email account. More than ever, critical people want a trusted tool to stay connected to their jobs.

This is also a fantastic opportunity to focus internal alignment among important individuals, leaders, and the company’s objective. Frontliners must grasp their superiors’ needs, goals, and ambitions in order to see the big picture.

Sustainable mental health and physical employee wellbeing is one of the top HR industry trends for 2022. HR executives are re-examining hourly employee working conditions, including:

  • Difficult working conditions
  • Excessive physical activity
  • Working long shifts
  • Employee well-being and mental health resources are available

Navigating the Great Resignation will be on HR professionals’ minds in the coming year. This suggests that now is the time to pay attention to your front-line staff.

Knowing and acting on their pain areas, top motivators, and vital demands will go a long way toward retaining the employees you need to be competitive. If you’re not able to cope up with the diverse needs of HR services, it’s high time you should look for a HR outsourcing company in India.

2. HR Leaders Prioritize Reskilling, Upskilling, and Flexible Development Opportunities

hr consulting company

Professional learning and development are essential for building an employment experience that people want to be a part of. Especially for front-line workers.

As per the World Economic Forum, workplace technology is going to change about more than one-third of all jobs  worldwide. To keep up with the Fourth Industrial Revolution, more than one billion individuals will need to be re-skilled and unskilled.

Being able to learn new things is a major incentive for frontliners. Skill-building will be a top priority for around 59 percent of HR leaders in 2022.

As a consequence, one of the top HR industry trends is that leaders must act on right away is flexible learning and development.

Employees can now get training on-demand thanks to the HR digital transformation. Employees in frontline sectors must be able to reskill, upskill, and learn new skills where and when it is most convenient for them in the future.

Examine how Payroll Management can improve organization’s safety by making training more accessible.

Meeting employees where they are in terms of development will be one of the long-term effects of the COVID-19 epidemic. This entails providing employees with flexible training alternatives that allow them to receive training when they need it. Not  just one HR consulting company in India, but all are continuously working at every prospect to help your organization with the changing HR industry trends.

3. Emergence of the People Analytics and Automation

hr analytics

For quite some time, there has been an increase in the usage of big data in HR. Especially with the digital change permeating all facets of human resources.

People analytics is gaining traction as firms strive to accomplish more with less in the talent arena. HR professionals, on the other hand, require tools and education to make data-driven decisions that have a beneficial impact.

Currently, 62% of HR leaders claim to be unable to use people analytics to identify trends and deliver actionable insights to inform business-related choices.

Businesses may use the correct people analytics technologies while making wiser decisions and gain a deeper knowledge of:

  • High employee turnover
  • Revenue is spent on new hires
  • How the company manages diversity metrics 
  • Why there is higher absenteeism than normal

In 2022, automation will also take center stage in HR processes. Chatbots, streamlined workflows, artificial intelligence, automated onboarding processes, and rapid manager approvals will all make life easier for everyone.

For each firm, the future of automation and people analytics in HR will be different. However, the top HR trends will undoubtedly save time and increase efficiencies when human resource teams require it the most. There are many HR consulting firms in India that work under the analytics and automation part to get the best results.

hr consulting firms in India

4. Workplace Diversity, Equity, and Inclusion Remains Priorities

HR industry trends in 2021 emphasized workplace diversity and the adoption of an inclusive organizational culture. The year 2022 is projected to be the same – especially since it’s becoming a vital component of a desirable job experience.

Workforce diversity, equity, and inclusion are critical components of any company culture seeking to flourish in the next economy. Not  only it just allows the employees to boast their life experiences to work  but also inspires them to do  so. It also increases the competitiveness of enterprises in the labor market.

Workplace diversity will continue to play an important role in maintaining strong personnel in 2022 and beyond. Currently, 70% of businesses believe they are effectively attracting and retaining diverse staff, but only 11% truly grasp what that entails.

The digital transformation is also important in bringing HR professionals’ diversity, equity, and inclusion objectives to life. Businesses may provide their employees with the platform they need to express their stories by utilizing mobile tools and technology.

5. Flexibility in the Workplace is Critical Even for a Frontline Employee

Employees prioritize a flexible work environment. Not just for full-time employees. There is a critical need for more flexible working hours in frontline occupations. And it’s not simply a matter of hours. Better work-life balance, more time off on weekends, and working longer hours on fewer days are all possibilities.

As per the facts, half of frontline workers want more flexibility in terms of when, where, and how they work, but only one-third of the workforce has it.

One way HR leaders are addressing this is by implementing shift scheduling technologies. Employees can access shift schedules from any location using these mobile tools. Frontliners can also use these technologies to identify someone to switch shifts in a hurry and gain immediate clearance from their manager.

Not to mention that scattered workforces are here to stay. Employees need flexible ways to stay connected, whether it’s a hybrid, remote working, frontline, or any combination in between.

Platforms for mobile productivity and collaboration are now available.

HR departments are doing a lot of work these days. This means that an increasing number of HR departments are utilizing flexible workplace solutions to interact with every employee about critical issues such as:

  • News and objectives of the company
  • Employee benefits and perks
  • Health and safety protocol changes
  • Shift schedule changes
  • Learning and development opportunities
  • Mental health and employee wellbeing tips

These open communication channels allow HR departments to ensure that the right information reaches the right people via the optimal channels. As a result, when frontline employees express a desire for more context, communication, and clarity from leaders in their workplace, HR leaders are taking action.

Regardless of industry, HR departments are gearing themselves for a new digital chapter in 2022.

HR professionals can transform the Great Resignation into the Great Opportunity with the help of flexible workplace tools. Digital platforms will be critical in sharing varied tales, capturing valuable people analytics, and enabling automated processes that will enable internal operations function more quickly, smoothly, and efficiently.

These digital solutions will also foster stronger bonds between frontline staff and their workplaces. Because, no matter how much technology enters our daily work lives, the basic human urge to feel connected and fulfilled will remain an evergreen priority for all HR professionals.


If you are looking for cost saving  hr outsourcing companies in India, stop hereby to get all the HR management problems sorted within the latest HR industry trends.  In India HR services and trends vary as per different rules and regulations statewise. We, at Payroll Management — the best outsourcing services, not  just provide effective payroll services but also find the trends in HR to upkeep with the market.

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hr outsourcing companies in India

Professional HR Outsourcing Service: The Best Option For You

When it comes to the hiring process, many business owners are under the false impression that they can do it all on their own. While this may be true in certain areas, it’s certainly not true when it comes to handling payroll, benefits, and anything related to human resources.

Thankfully, there are affordable outsourced HR solutions on the market like Payroll Management that take much of the burden off your shoulders, saving you time and money in the long run. By looking at this article, you’ll learn what an outsourced HR service can do for your business, including how it benefits both you and your employees.

What is HR Outsourcing?

hr managed services

Human resources (HR) outsourcing, also called staffing or recruitment outsourcing, occurs when an organization hires a specialized company to handle its staffing needs. Outsourcing is designed to help companies save money and improve efficiency.

Today, most small-to-medium-sized businesses (SMBs) can’t afford to hire in-house employees for their human resources departments. Instead, they depend on an outside firm or service provider. For example, many software companies outsource their HR services by hiring a specialized HR outsourcing firm for contract work instead of in-house recruiters. An outside agency offers access to workers across various industries and specialties at lower costs than hiring full-time staff members would entail.

Benefits of an Outsourced HR Solution

Many business owners are uneasy about bringing an internal HR manager or specialist on board. On one hand, it can feel like you’re using precious resources to take care of something you could do yourself. On another, it can feel like you’re passing off responsibilities that belong to your business and not with an outside party. Both concerns are legitimate, but there are also several benefits to hiring a professional service to help with things like payroll, employee training, and compliance work.

Outsourcing human resources give your company access to industry-specific expertise without having to pay for full-time employees, which can save money in addition to freeing up time and attention that belongs inside your business rather than outside it.

While outsourcing may seem expensive at first glance, consider what you might spend if your business gets hit with a major fine because it didn’t have compliant policies in place—you might find that paying someone else to handle HR is less expensive in the long run.

If you need more convincing, ask yourself these questions:

#1. What would happen if I lost my best worker?

#2. Would I know how to replace them?

#3. If so, would I be able to do so quickly enough?

#4. How much would it cost me if I had to hire a replacement and train them from scratch?

#5. What happens when my best workers leave me?

#6. Are they taking their knowledge with them or will they stay put until they’ve found new jobs elsewhere?

#7. How much does turnover cost me every year in lost productivity, new hires and training costs?

If you aren’t sure how to answer these questions or where your weaknesses lie as an employer, then consider investing in outsourced services that help ensure your success.

hr consulting firms in India

What Makes an Ideal Outsourced Provider?

Many of you have asked for recommendations for outsourced providers. And I can tell you with certainty that it’s because you’re seeking out quality, not just any service. That’s fantastic! With all of your options for outsourcing HR, there are a few key qualities to look for in an ideal provider:

1) Specialization: Are they focused on providing HR outsourcing services, or do they offer multiple services?

2) Experience: How long have they been providing these services?

3) Reputation: Do they have clients who recommend them based on their outstanding results?

4) Cost-effectiveness: Are their fees affordable and justified by value provided?

Only once you’ve narrowed down your list to those providers who satisfy these criteria should you begin digging deeper into each of them.

Common Misconceptions About Outsourcing Your HR Department

Some businesses mistakenly think hiring an outside firm will cost them dearly. However, in most cases, outsourcing your HR department costs about 20 percent of what it would to hire an in-house person for an equivalent position.

For example, if you had previously budgeted $100,000 for a new full-time employee’s salary and benefits, that amount can usually be reallocated to pay an outsourced firm $20,000—leaving you with $80,000. That $80K is what you’ll actually save by outsourcing your workforce management; about half of that goes toward federal and state payroll taxes that would have been paid on a full-time employee’s salary and benefits.

How Can You Find the Right Outsourced Partner?

hr consulting firms in india

To find a partner that’s right for your business, you’ll want to start by developing what you need and not just what you want. What does that mean? It means looking at roles, responsibilities, and services, rather than specific vendors or providers. If you have all of your requirements laid out in front of you, it will be easier to identify potential partners with relevant experience.

Once you’ve found someone that meets your needs and requirements on paper, schedule time to meet with them in person. Look into their past work experiences and talk about how they would manage processes for your company. Do they have relevant experience? Are they easy to work with?


One of your most important tasks as an entrepreneur is to make sure you’re protecting your business from pitfalls. Business owners who fail to address their HR needs are on thin ice, and it only takes one (big) slip up for things to go south.

If you’re not happy with your current approach to hiring or benefits administration, consider outsourcing. It’s time for you to focus on what really matters: making sure your company succeeds. Allow professionals that have been in the industry for years to do what they do best: administer valuable services efficiently and cost-effectively.

hr outsourcing company in India