Is outsourcing HR the best solution for your growing business, or should you move your HR in-house? As a business owner, you’ve probably gotten used to making tough decisions daily. But whether or not it is time to outsource Human Resources may not be as difficult of a decision as you may think. Two of the biggest advantages of outsourcing your HR services is the fact that it frees up your time, so you can focus on growing your business, along with saving your company money. However, HR outsourcing is beneficial in many different ways for growing businesses – and even the smallest companies can benefit from HR outsourcing. So…how can your growing business benefit from HR outsourcing? Here’s a closer look at why outsourcing HR could be one of the smartest (and easiest!) decisions your business will make.


  1. Save Time 

Spending too much time on HR, not your business? It’s not just you! Research shows that despite working an average of 50-plus hours per week, business owners only spend about 30 percent of that time on actual business functions. The rest of their time is spent on administrative and other tasks that don’t contribute to revenue. The good news? Outsourcing Human Resources can allow you to concentrate more on managing your team and growing your business instead of being bogged down by menial tasks, like payroll and hours tracking. HR outsourcing can tackle many (or all) of your HR responsibilities, leaving you time to focus on the big picture.

  1. Save Money 

Not only can outsourcing HR help you break free from the everyday tasks that eat up too much of your time, but it can also save your company money. Think of it this way. The average Human Resources manager earns more than $75,000 per year, plus benefits. Therefore, depending on the size of the HR department, a small to medium-size business can easily spend hundreds of thousands of dollars on HR staff. So even though you might feel the itch to bring everything in-house, payroll experts are costly and often unnecessary – and outsourcing your HR can significantly reduce that expense. 

By a similar token, even if your business can staff an HR department, in many cases, it’s not always considered the best allocation of resources. If money can be saved using some form of outsourced HR, more funds will be available to invest in core activities—areas that will, in the long run, fuel success. After all, spending less time on HR functions frees up time to spend on strategic sales and growth goals, increasing revenues. Investing in HR outsourcing, therefore, can produce a return on investment that far outweighs the cost of the service.

  1. Avoid Mistakes 

Outsourcing Human Resources costs far less than hiring a full-time HR specialist, hence making it a much more cost-effective option. But another way your business can benefit from outsourcing HR is by avoiding mistakes in HR management. Case in point, did you know that 81 percent of small business owners handle HR on their own, spending unnecessary people-hours and making errors? This, according to a Small Business Confidence Survey, which also showed that more than 30 percent are worried they’re not handling the core HR functions at their company correctly. Also, about a third of small business owners reported payroll errors, including late disbursement of checks/direct deposit, overpayment of employees, and faulty record-keeping. 

The moral of the story? You can outsource your key HR functions to avoid mistakes in HR management. Not only will this free up critical time for you to spend on core business needs, but you can rest assured that your HR functions will be handled by people who are experts in their respective fields.

  1. Reduce Liability 

Although HR can be difficult for businesses of any size, the growing complexity of managing HR processes today presents a significant challenge for small and growing companies. HR regulations are changing much more rapidly than they did in the past, especially over the last five years or so. This makes it harder to stay on top of the latest rules and easier to make mistakes that can cost a company financially and legally. Because not only do business owners find it challenging to keep apprised of the latest HR laws when their attention is needed elsewhere but even when business owners have dedicated internal HR staff, it can be tough for them to take care of the day-to-day needs of employees while also keeping on top of the latest regulations. 

Also, don’t forget that some mistakes in HR management will not only lead to fines but can also hurt employee loyalty. Therefore, taking HR into your own hands, or trusting your HR responsibilities to employees who only deal with these issues on a part-time basis, or who aren’t sufficiently trained in HR matters, can cost you dearly. Luckily, HR outsourcing helps you keep track of legal obligations, protecting you from expensive (and time-consuming) lawsuits.

  1. Improve Productivity

Outsourcing your HR can enhance business productivity in various ways. When you have a small or growing business, odds are, you rely on each of your employees to take on a variety of responsibilities. The more hats each person has to wear, however, the less they’re able to focus on their official position. Outsourcing Human Relations can take the day-to-day administrative tasks off of your team so they can focus on higher-level business initiatives. 

In addition to maximum employee output, when your growing company outsources your HR functions to one strategic partner, it not only allows your staff to focus on operating your core business, but it enables you to focus on growing your company. By outsourcing Human Resources, that time can be devoted to other functions that are more beneficial to building the business, as well as increasing productivity. Instead of spending time on paperwork or dealing with payroll and benefits issues, you can work on setting goals, developing a strategic plan, marketing, and selling, all of which will ultimately bring in more revenue.

  1. Find A Solution That Benefits Your Unique Business 

Another way that your growing company can benefit from HR outsourcing is by having the option to select HR services that benefit your unique business, ranging from Full Human Resource Management to “strictly payroll” to any variation in-between. Some examples of HR functions that are outsourced include Payroll, Time tracking, Recruiting, Staffing, and Employee benefits. 


The Bottom Line

As many business owners know, being profitable isn’t just about creating and selling a successful product or service, but also figuring out how to effectively and efficiently manage day-to-day operations, like Human Resources, within a budget, which in turn impacts the bottom line.

As a business owner, you can try to manage HR yourself, but such internal HR handling distracts you from managing core business matters. It also eats up time and money, increases the likelihood of noncompliance and other errors, and even impedes on your productivity. To minimize the challenges posed by HR management, your growing company can turn to HR outsourcing. Because, all in all, at the end of the day? You can’t slow time, and you can’t make money grow on trees. But you can outsource key HR functions that will let you free up more of both. 


Let Right Growth Management Be Your Dedicated Human Resources Partner

Is it time for your company to outsource HR services? Or are you interested to learn more ways that your growing business can benefit from HR outsourcing? Whether you’re looking for customized, scalable outsourced HR management, payroll, or consulting services, let Right Growth Management be your dedicated Human Resources partner. We are not software; we are real people serving real people. You can rely on our dedicated and accessible team of HR experts who know your business and have got your back. We offer:

  • Full Human Resource Management 
  • Co-Managed Human Resources
  • Accurate and secure Payroll Processing 
  • Additional Services, including HR Consulting and Strategic Business Projects, Complete HR Program Development, and Recruitment/Placement Screening Services 


Contact Right Growth Management To Learn More

Right Growth Management is ready to help you find the right customized and scalable solution for your business that will lead you and your company to success. To learn more about our services, call us at (321) 249-0094 or visit our website at