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71% of CEOs cite human capital as their biggest contributor to sustained economic value--(Business Standard) If your company is considering outsourcing it's human resources functions – either one or many  – you are part of a growing trend.  

In your Zayde's (Yiddish for grandfather) years, H.R. was much less complex. There was hiring, firing, payroll with clerks or secretaries crunching the numbers by hand and working out the occasional Kvetsh (a person who complains a great deal.) But since the late 1970s, H.R. has grown increasingly more challenging. And in recent years, EEO, FMLA, ADA and now Obamacare have made compliance a labyrinth to maze through!

The Society for Human Resources Management (SHRM) conducted a survey of hundreds of companies about their outsourcing habits and here’s what they found are the six most common reasons that companies outsource:

1)  26% of companies outsource to save money – this isn’t terribly surprising – what company doesn’t want to pinch pennies where they can?

2)  23% of companies outsource to focus on strategy – spreading yourself too thin with all of the administrative tasks doesn’t leave a lot of time for planning, so this makes sense.

3)  22% of companies outsource to improve compliance – it is increasingly challenging to stay in compliance and increasingly risky to not meet requirements so outsourcing this risk is beyond smart.

4)  18% of companies outsource to improve accuracy – if you’ve got too much on your plate (and who doesn’t?) accuracy may fall by the wayside, so this also makes sense.

5)  18% of companies outsource due to a lack of experience in-house – knowing your weaknesses is as important as knowing your strengths, so handing off a task you know you can’t handle properly to someone with expertise is a great business decision.

6)  18% of companies outsource to take advantage of technological advances – with big data worth tapping into, but costly technology needed to really delve into strategic analytics, outsourcing can offer solutions without a significant investment.

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