Updated: Mar 1
Human resources (HR) outsourcing is an industry that began in the 1990s when businesses started working with third-party companies to outsource payroll processing. From there, the industry grew to include other HR tasks, such as benefits management, recruiting, and the handling of unemployment claims. Eventually, some companies began to look at outsourcing their entire HR department functions to these third-party firms.
Today, businesses of all sizes and from most every industry have chosen to outsource the HR function in an effort to increase efficiency while driving down costs. While the benefits of outsourcing are fairly obvious for smaller companies, larger organization are also seeing the benefits of assigning specific HR functions to third-party outsourcing firms.
Some of the specific benefits that businesses can expect from outsourcing some or all of their HR functions can include:
Outsourcing some, or all, of your HR functions allows business executives to focus their efforts on managing and growing the business, instead of being bogged down by employee hours tracking, payroll, and other administrative tasks.
The average Human Resources manager now earns nearly $80,000 per year, plus benefits. So, depending on the size of your HR group, your business can easily spend hundreds of thousands of dollars annually on HR staff. Outsourcing some, or all, of your HR functions can significantly reduce those expenses.
Today, the growing complexity of HR management today has created a significant challenge for many small and growing businesses. HR regulations are changing at a faster pace than ever. It is critical for companies of all sizes to understand and adhere to these changes in order to avoid legal and financial issues. Because it is their core business, HR outsourcing companies can be a great resources in managing and adapting to these changes.
eLearning and HR Outsourcing
The growing need for corporate training and employee development has largely fallen under the responsibility of the HR team. And while in years past, corporate training programs were simply handled through in-person, classroom-based training, the evolution of cloud-based technologies, combined with increasingly remote workforces have made online learning, or “eLearning” the preferred approach to corporate training programs.
The core technology for any type of eLearning program, including corporate training and employee development, is a Learning Management System, or “LMS”. An LMS is the application that is used to build, deliver, manage, and track all types of eLearning programs.
LMS technology is not new, but two relatively recent developments have made it extremely well-suited for use by HR outsourcing companies.
While some companies choose to “stand up” an LMS on their own servers (self-hosted) they tend to be larger organizations who plan to allocate the entire use of the LMS to a single, internal audience. They also tend to be companies who have the financial and labor resources for this effort.
HR outsourcing firms that are looking to include corporate eLearning and training as part of their services offerings often work with cloud-based LMS vendors to access and offer powerful LMS features and capacity across the entirety of their client base and without having to make a large, upfront capital investment in hardware, software, and infrastructure.
Another recent development in LMS technology is in the availability of multitenancy. While a single tenant LMS dedicates the entire infrastructure for use by a single training audience, a multi-tenant LMS allows you to “spin up” new instances of the application to support multiple training audiences by providing each of them with their own private, customized eLearning environment (portal). Multitenancy is well-suited for HR outsourcing firms that want to offer a dedicated training environment for each of their clients.
LMS Portals for HR Outsourcing Companies
LMS Portals provides our HR outsourcing company partners with a cloud-based, multi-tenant learning management system that allows them to launch and manage a private eLearning portal for each of their clients. Each portal you launch can have its own unique branding and includes powerful tools for course development, user onboarding, learner collaboration, analytics, and more.