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4 Benefits of Outsourcing HR

September 24, 2019 | posted by Abacus Payroll
employee working remotely from computer outsourcing work

A human resources department is one of the most crucial—and chronically overworked—sections of any successful business, but the fact of the matter is that not every business is large enough to warrant a full-time HR team.

If this is the case for you, it’s still possible to reap the benefits of a fully functional HR team without the accompanying price tag. Here are four benefits of outsourcing your business’ HR responsibilities.


1. Goodbye, Physical Files

There are pretty much unlimited benefits to using online payroll and HR solutions as opposed to paper-based options, but perhaps the most important one is that both you and your selected HR company can access the necessary files anywhere at any time. Cloud storage-based options make retrieval and usage of HR tools easy wherever an internet connection is available, and the hassle of leafing through a traditional folder to find a specific document gets reduced to a simple typed search query.

This means you’ll pay your selected HR solution for actual work, not hefty amounts of search time and organization. Additionally, your records and employee information can undergo editing, distribution, and archival with only a few clicks, thus mitigating the risk of damaged or missing records. This convenience, especially when compared to traditional HR solutions, is hard to beat.

2. Flexibility

One of the issues with having an in-house HR department is that everything stays fixed: your space, your team, and your storage. If you want to increase the size of your HR department, you have to allocate more space—or risk overcrowding your existing department—and scaling down involves lengthy negotiations or legally questionable lay-offs.

When using an online payroll and HR team, you can request as much—or little—intervention as your needs determine them. This also means that your HR rates will usually come in lower than you would pay for a full-time team, all without needing to spend time and money on trainings, onboarding, and—once again—physical space.

3. Secure Storage and Management

Everyone knows that paper-based records aren’t secure; no matter how many locks you put on your filing cabinet, the risk of prying eyes is too great to serve in the current business model. Fortunately, outsourcing your HR department means that all of your documents have extremely secure encryption, handling processes, and storage tailored to your company’s specifications.

Even your culpability isn’t the same as having a traditional HR department: Any data breach, however unlikely, falls on the shoulders of your selected HR company, thus saving you the embarrassment and financial burden of addressing an intrusion or leak.

Secure management of your HR affairs is also incredibly important, both for legal protection and for employee happiness. Half-hearted HR is often worse than not having an HR department at all, and employee well-being will suffer if your HR solutions are lackluster or underqualified. Having a professional, expert HR department won’t just protect you from legal action—it will also ensure that your employees feel supported and welcome.

4. More Dollars for You

Ultimately, it just isn’t financially practical to have a full-time HR team in your building if you have a low number of employees. Outsourcing your HR means that your team only works when needed; as your needs fluctuate, you can request more (or less) intervention on a case-by-case basis. This essentially means that you are covering fully your business and your employees from a legality standpoint while continuing to pay less than you would for a full, in-house team.

Of course, the notion to do your own HR for a fraction of the price of outsourcing will occur to you. While the idea may seem tempting, it’s important to remember that a human resources team is often necessary to ensure that your business remains compliant and your employees continue to feel safe. Outsourcing the best HR available will almost always cost less than addressing a litigation suit on your own dime.


There are virtually countless benefits to having a well-rounded HR team, and the consequences of neglecting one are severe. For more information about how you can get the most out of your outsourced HR solutions, call Abacus Payroll at (856) 667-6225 today.

About the Author: Abacus Payroll

Abacus Payroll, Inc. is a leading provider of payroll solutions for businesses of all sizes. Whether yours is a family-owned small business or a national corporation, we provide payroll, tax and other financial services on time and at an affordable price. Unlike other payroll providers, Abacus Payroll will assign your very own payroll specialist who will understand your payroll needs inside and out. So no more speaking to a different person each time, no more sitting on hold for hours and most importantly no more missed deadlines! Contact us today to see how we can help your business. You can count on us.