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Build a Competitive Advantage for Your HR Outsourcing Company

HR Outsourcing Company

HR outsourcing has been growing in popularity in recent years as companies seek to focus on their core business activities and reduce costs. Here are some of the reasons why HR outsourcing is becoming increasingly popular:

Cost Savings

HR outsourcing can help companies reduce their costs by eliminating the need to hire and train HR staff, invest in HR technology, and maintain HR systems.


Outsourcing allows companies to quickly scale up or down their HR services as needed, without having to worry about hiring or firing employees.


HR outsourcing companies often have specialized expertise and experience in HR practices, allowing companies to access high-quality HR services and advice.


HR outsourcing companies can help companies stay compliant with local, state, and federal laws and regulations, reducing the risk of costly legal issues.

Improved Efficiency

Outsourcing HR functions can improve the efficiency of HR processes, allowing companies to focus on their core business activities and improve overall productivity.

Access to Technology

HR outsourcing companies often have access to the latest HR technology, which can help companies streamline their HR processes and improve data management.

Five Statistics for the HR Outsourcing Market

There are five interesting statistics regarding the HR outsourcing market:

  • According to a report by Grand View Research, the global HR outsourcing market size was valued at USD 27.2 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 8.4% from 2021 to 2028.

  • The same report found that the recruitment outsourcing segment is expected to be the fastest-growing service type during the forecast period, with a CAGR of 9.2%.

  • A survey by the Society for Human Resource Management (SHRM) found that the most commonly outsourced HR functions are payroll (64%), benefits administration (38%), and training and development (35%).

  • Another survey by Paychex found that the top reasons companies outsource HR functions are to save time (68%), to improve compliance (57%), and to reduce costs (54%).

  • The same Paychex survey found that 49% of small business owners who outsource HR functions do so because they lack the expertise to manage HR in-house.

Types of HR Outsourcing Offerings

HR outsourcing companies offer a wide range of services to help organizations manage their HR functions more efficiently and effectively. Here are some of the most common types of HR outsourcing offerings:

  • Payroll processing: This involves managing employee pay and benefits, including calculating and processing payroll taxes, handling deductions, and issuing paychecks or direct deposits.

  • Benefits administration: This includes managing employee benefits such as health insurance, retirement plans, and other perks.

  • Recruitment and staffing: This involves sourcing, screening, and hiring employees for the organization, including job postings, candidate screening, interviews, and onboarding.

  • Training and development: This includes developing and delivering training programs to help employees acquire new skills, improve performance, and advance in their careers.

  • Compliance management: This involves ensuring that the organization is in compliance with labor laws, regulations, and industry standards, including creating and maintaining policies and procedures, managing employee records, and conducting audits.

  • HR technology and systems: This includes providing access to HR software and systems, including applicant tracking systems, HR management systems, and other tools to streamline HR processes.

  • Employee relations and engagement: This involves managing employee relations, including handling complaints, conflict resolution, and supporting employee engagement and retention.

Six Ways to Build a Competitive Advantage for Your HR Outsourcing Company

Building a competitive advantage for your HR outsourcing company requires careful planning and execution of strategies that set you apart from your competitors. Here are some steps you can take:

1. Develop a Strong Value Proposition

Define what makes your HR outsourcing company unique and communicate this to potential clients. Consider what services you can provide that others cannot, or what benefits you can offer that others do not.

2. Focus on Customer Service

Deliver exceptional customer service to your clients. This includes being responsive, proactive, and ensuring that your clients receive the support they need to achieve their goals.

3. Leverage Technology

Use technology to streamline your processes, reduce costs, and improve the efficiency of your services. Consider investing in tools that automate repetitive tasks, such as payroll processing and employee onboarding.

4. Build Expertise

Develop deep expertise in specific industries or niches, such as healthcare or tech, to differentiate yourself from competitors. This can help you provide more specialized services and establish yourself as a thought leader in your field.

5. Network and Collaborate

Build relationships with other businesses and professionals in your industry to expand your reach and increase your credibility. Collaborate with complementary businesses, such as IT consulting firms, to offer bundled services that are more valuable to clients.

6. Invest in Your Employees

Attract and retain top talent by offering competitive salaries and benefits, professional development opportunities, and a supportive work environment. This can help you build a team of experts who are committed to delivering exceptional service to your clients.

About LMS Portals

At LMS Portals, we provide our clients and partners with a SaaS-based, multi-tenant learning management system that allows you to launch a dedicated training environment (a portal) for each of your unique audiences.

The system includes built-in, SCORM-compliant course authoring software that enables most anyone to build engaging courses quickly and easily.

We also offer a complete library of ready-made courses, covering most every aspect of corporate training and employee development.

If you choose to, you can create Learning Paths to deliver courses in a logical progression and add structure to your training program. The system also supports Virtual Instructor-Led Training (VILT) and provides tools for social learning.

Together, these features make the LMS Portals platform the ideal solution for our HR outsourcing partners.

Contact us today to get started or visit our Partner Program pages

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