HR Outsourcing: 5 Reasons Small Businesses Choose to Outsource

September 7, 2018

If you run a small business, chances are it’s the result of plenty of blood, sweat, and tears on your part. Putting your whole life into a project may make you reticent to release any control, but, simply put, you don’t know what you don’t know,  and allowing outside sources to lend their expertise on subjects like payroll and HR can revolutionize your business.

Here are 5 reasons small businesses choose to outsource.

Saving Money

Outsourcing is one of the best ways for your small business to save money. Between wages, training, insurance, and the rest of the myriad of costs, employees are one of the biggest expenses of any business. It can be incredibly cost-effective to outsource smaller, but vital tasks like business payroll. By doing so, you allow yourself the opportunity to seek out the most cost-effective resource to aid your business, rather than trying to accomplish it in-house.

Saving Time

In the same vein, outsourcing payroll and HR can be an efficient time-saver as well. You could spend weeks (not to mention plenty of dollars) training an employee to complete a given task and waiting for them to hone their skills. By outsourcing, you ensure that your task will be completed by someone who is knowledgeable in the field and has already spent the time necessary to master their skill.  That way, you can invest your time in your business, rather than task-management of extraneous operations. If you do already have a payroll manager, they could maximize their productivity by outsourcing payroll processing with brilliant tools like iSolved. There’s no sense in spending time reinventing the wheel– use the quality resources available to you.

Expert Advice

Trial and error are an inevitable part of running a business, but there is a time and place for this. Mistakes in your human resources department can be costly, and sometimes even result in legal trouble. You could spend weeks or months trying to perfect your human resources division and adapt to the latest legislation, or you could utilize the skills of an experienced HR professional. By outsourcing, you can rest easily with the knowledge that an expert knows exactly what will best serve your business and can deliver that assistance immediately– so you can focus on developing the goods or services at the heart of your company.

Expanded Networks

Just like you don’t know what you don’t know, you don’t know who you don’t know.

By outsourcing, you open your business to a whole new field of opportunities. Not only are you able to capitalize on the talents of individuals outside of your staff, but you can also make connections with a large network that you may not have access to on your own. Whether it’s a new client base or potential collaborators, expanding your business’ reach beyond your current network can only have a positive effect on your group’s operations. Check out this article on the number of ways expanding your network could be beneficial.


No one knows your business better than you and no one cares about it more. While this is vital for keeping the heart of your business alive, it’s only human to be blinded by feelings. Sometimes, an outside opinion is what you need to ensure that business decisions are made objectively.

Outsourced advice can protect against potential blind spots, offer diverse opinions, and bring a fresh perspective to any business decisions.

This objective opinion may also give you a better idea of what the public view of your organization looks like. By outsourcing, you ensure that the advice and services offered to you are what is best for your company, without any tricky emotional attachments.

While small businesses are best run by folks who know and love them, there are a number of reasons that outsourcing some of the operations can be beneficial. When it comes to payroll and HR, keep your focus on the heart of your business and let Commonwealth Payroll & HR take care of the rest! Call us today at 877-245-1159.

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