Outsourcing - Human Resources Functions

The appointment of external specialist HR firms to undertake Human Resources processes within a business. 

Many SMEs do not have the size to maintain an internal Human Resources function or division. 

They still, however, need to hire and manage the best people. Specialist firms can help (Seek—recruitment).

Using external HR specialists enables firms to:

• reduce costs, 

• focus on core processes, 

• improve quality of HR through access to expertise.

Functions commonly outsourced: recruitment and selection, training and development, outplacement, payroll, mediation. 

External experts can also be utilised to review and evaluate internal HR practices such as: compensation, succession planning, performance management systems, change management and HR information systems.

Note: Outsourcing in Operations is a strategy. Outsourcing in HR sits in the Role topic. I am not sure why this could not be proposed as a Human Resources strategy, but this is the way the course is built.