The Benefits of Human Resource Outsourcing (HRO)


Written by Ashley Dameron

July 26, 2022

Human Resource Outsourcing (HRO) entails more than just paying your people. HRO delivers multiple benefits that help leaders and teams achieve strategic goals. Outsourced payroll is only a small part of HRO, and most companies who leverage payroll outsourcing also leverage other outsourced HR services.

Are your employees satisfied?  Read our blog: How Outsourcing Can Help Companies Meet Employee Expectations.


1. HRO Eliminates Manual Processes

If you are managing Payroll for hundreds or thousands of employees across 20+ locations, processes quickly become complex and time consuming. Receiving hourly info for employees from each location, and manually entering data or calculations for payroll and reporting is a large time-spend. If your employees are tipped, that just adds to the complexities.

Outsourced payroll automates your payroll process and eliminates the need to create reports or manually make calculations. It simplifies your processes, reduces your administrative headcount, ultimately reducing your overhead costs. When HR leaders aren’t spending time managing payroll, they can spend their time focused on strategic initiatives like culture, employee retention, recruiting, training, and more.


2. HRO Saves Time on Open Enrollment

The amount of resources spent on benefits enrollment packages is exorbitant. HR teams spend a large amount of time putting together paper packets, setting up meetings, and distributing and filing benefits enrollment paperwork. Outsourced HR allows for automated workflows and robust Human Capital Management (HCM) platforms, so employees can enroll in benefits administration online. Without in-person meetings, thick paper packets, or confusing forms, online benefits enrollment creates an easy and stress-free experience for your employees and your HR team.


3. HRO Provides Access to Real-Time Data

From Finance to HR, data plays an important role in the efficiency of your operations. HR teams rely on data for reporting purposes, but many have to manually pull data from various systems, enter it manually, and create their reports. With HRO, your teams can pull the reports they need instantly and gain real-time access to payroll details, compliance numbers, headcount reports, and other business intelligence.


4. HRO Improves Workplace Culture

Employees who feel they have a voice are more likely to have a positive employee experience. HRO provides ways to gather and provide feedback through surveys and other automated channels. Simplified workflows make obtaining employee feedback easier than ever.

Communication is often another challenge for teams, especially within a multi-unit model. Geographically dispersed employees can quickly cause silos and break down communication. HRO offers one line of communication from leadership to the front-line, so employees stay in the loop, and the company can reach employees through their preferred method of communication.

With so many automated workflows and streamlined processes, HRO allows leaders and teams to refocus and invest in strategic HR operations like cross training, employee development, recruiting and retention, Diversity, Equality, and Inclusion, and other priorities that drive HR goals. HRO can help you transform you company and your HR team into efficient operations with positive workplace culture and an improved employee experience.





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