Advantages to HR Outsourcing

HR outsourcing is becoming more and more popular, especially for small businesses. Recent studies have shown that over 40% of business outsource all or some of their HR needs, and this number continues to rise. What is driving companies to HR outsourcing rather than have their HR department in house? Find out the major benefits below!

Streamlining and Efficiency

A big driver of hr outsourcing is maximizing efficiency and streamlining processes. Efficient and productive processes create efficient employees, which drives performance and profits. Most HR outsourcing firms have processes in place, making it easy to implement a compliant HR strategy with new clients. Some also partner with HRIS systems that integrate technology with HR strategy, making the outsourced HR department more accessible to employees.


Perhaps the biggest driver of outsourcing HR is the cost. HR Directors make $150,000 or more each year, outside of benefits and other compensation. Hiring a full-time HR representative also requires the company to commit resources to that person and train them into the company. Alternatively, HR outsourcing usually costs between $6,000 and $30,000 per year. Why spend $150,000 when you can get the same or better expertise for a fraction of the cost?


Many HR outsourcing firms have a team of people with a variety of expertise, giving more well-rounded advise. Eli Advisors even goes beyond just having a team of experts behind us. We study our client’s companies and culture. We partner with company leadership to talk through decisions, provide advice, and help the company succeed in every way possible. Many companies are concerned with losing the personal touch of an in-house HR team, but we strive to become an integrated part of your company no different than any other HR department.

HR outsourcing for small businesses is often a no-brainer; however, finding the right partner can be challenging and overwhelming. Focus your search around finding a company who shares your values and who will come alongside you to help reach your goals.

Want to learn more about HR outsourcing to see if ELI Advisors might be the right fit for your business? Learn more about how our HR services are different than the average outsourcing firm or contact us today.

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Eric Thieringer President
Eric Thieringer is president of Eli Advisors, an HR, payroll and employee benefits firm focused on serving small to mid-size organizations. Eli's services and support address the frustrating gaps that challenge employers and their employees. By solving these problems, Eli Advisors creates financially sustainable programs and services that help organizations attract, retain, and engage the talent needed to succeed.