HR outsourcing services

As a small or medium-sized business owner in Australia, there’s a good chance you need HR support to manage your employees and employment relations responsibilities.

The Australian employment relations landscape is complex, and the risks of getting it wrong are high. So, you can’t afford to take compliance for granted.

SME owners and employers often wear many hats, so you may assume that hiring an in-house HR management team is your only option. But this is often costly and unaffordable for many small businesses, especially when you’re just starting out.

The good news is, in today’s software-driven world, there are effective alternatives available for outsourcing HR services that are affordable while helping you avoid risks and ensure the success of your business.

Let’s take a look at all the ways outsourcing HR services can benefit your organisation.

What is HR outsourcing?

HR outsourcing is the process of purchasing HR services for your business from an external HR provider.

The specific HR services that are outsourced vary from company to company. Some may outsource all their HR processes, while others may only outsource a particular HR function, such as payroll or recruitment.

Making HR outsourcing a viable option for businesses in need of specialists to manage some or all HR activities.

The types of outsourced HR services

Three main types of HR outsourcing services are most popular among business owners, they are:

Business process outsourcing (BPO)

This type of outsourcing involves a provider who manages specific HR tasks for your business, such as payroll or hiring strategies.

Shared services

This refers to the external management of the administrative aspects of human resources while you continue to maintain control over the management of your employees.

Application services

This service involves using a digital application or suite of digital applications and tools to manage your HR functions. With this option, you can retain the most control over your data and human resources without the associated stress and hassle of doing it alone.

Depending on the requirements of your business, you may need to combine multiple HR outsourcing services to meet your specific needs. However, the primary goal of HR outsourcing is to take some of the workload off your shoulders.

Why outsource HR?

Outsourcing HR functions can provide your business with the time and money you need to focus on growing your business without neglecting your HR obligations. An HR provider's solution can either replace an in-house department or work alongside an existing team to fulfil your people management obligations.

The reason why companies outsource HR is to gain human resources expertise and make sure they’re doing the right thing at all times.

Although outsourcing HR services may feel like you’re losing control over some aspects of your people management, using a reputable HR provider can guarantee a return on investment and even add value to your business.

There are several benefits that will boost your business should you decide to outsource your HR functions.

Some of the main benefits include:

Cost saving

By outsourcing your HR needs, you can save the costs of establishing an internal HR team. These costs include salaries, benefits, and other overhead costs associated with maintaining in-house HR departments.

With the resources you save, you can invest in areas that can help you grow and improve your business like new equipment, training, and headcount.

Added expertise

When you use an outsourcing partner, you get to work with a team of experienced HR professionals. They're equipped with specialist skills and knowledge to manage even the most complex HR issues for you.

This way, you can focus on what you do best and let the experts handle your HR challenges. 

Time saving

HR administration is often time-consuming, taking your focus away from core business operations. But outsourcing your HR admin frees up your time to focus on the big picture—growing your business, leading to increased productivity and profitability, which is always a win-win situation.

Meeting legal obligations

As a business owner, keeping up to date with employment legislation can be daunting. The employment relations landscape in Australia is always changing, and with different states and territories maintaining distinct legislation, businesses have their work cut out for them.

Getting the support of outsourced HR services, like an HR advice line can help you reach a team of employment relations advisers and make the most of their expertise to avoid breaching the law.

Unlock scalability

Partnering with an HR service provider can offer your business the flexibility to quickly adapt to changing needs, without the burden of scaling up internal processes and procedures. This can help you grow with more ease.

Cutting-edge echnology

Choosing to partner with advanced HR technology and HR software can streamline your HR processes, improve your data management, and enhance your reporting capabilities. The added benefit of software is that it often centralises your processes and lets you maintain an overview of your operations.

Overall, outsourcing HR functions can help you operate more efficiently, reduce costs, and improve compliance, which all lead to long-term success and growth.

HR outsourcing vs HR consulting firms

It's common for people to confuse outsourced HR services with HR consultancy. But there are significant differences between both.

Outsourcing HR involves transferring the entire HR function or certain processes to an external service provider. On the other hand, hiring an HR consultant involves seeking expert advice and guidance on specific HR processes and issues. Both options offer benefits for businesses.

Did you know that BrightHR provides both? Our HR software and services are backed by HR support and the expertise of professional HR consultants with over a decade of experience.

Cost considerations for outsourcing HR services

You’re probably thinking by now, how much would it cost to outsource your human resources?

Well, it depends on your business requirements, but you’ll often find it’s far more cost effective than hiring an in-house human resource management team.

Other HR outsourcing companies may offer you basic HR services, but providers like BrightHR give you end-to-end HR software and services. So, you get all the benefits of a comprehensive HR solution for managing your employees, that's more than just HR software.

Our solutions start at just $12 per employee per month and can be customised to suit your business. So, you don’t end up paying for services you don’t need or use.

Each of our packages— Connect, Protect, and Prime—are designed to offer you an increasingly comprehensive range of HR, and health & safety software and advice.

For a look into our pricing and packages check out our pricing page.

So, the question you have to ask yourself is...

Are you looking to maximise your business's ROI while saving time and money?

If the answer is yes then, outsourcing HR functions is the perfect solution.

Whether you want to replace an in-house department or complement your existing team, HR outsourcing solutions, like BrightHR, are the most cost-effective option.

By outsourcing your HR, you can ensure that your human resource activities and any HR issues are managed by HR specialists, who will take care of the HR admin, leaving you with more time to focus on growing your business.

But don’t just take our word for it, see for yourself how much you could save with BrightHR…