Introduction
The success of any business largely hinges on its workforce. However, managing HR functions internally can be both time-consuming and costly, particularly for startups or businesses experiencing growth. In response to this, many companies have found that outsourcing HR functions is an efficient and cost-effective solution, allowing them to focus on scaling while HR experts manage employee needs.

This guide delves into the factors influencing HR outsourcing costs, the different pricing models, and the types of HR services available, helping you make an informed decision for your business. We also explore how platforms like Gloroots simplify employee outsourcing and reduce costs while ensuring seamless global management.

Discover how Gloroots simplifies employee outsourcing and reduces costs while ensuring efficiency.

What is HR Outsourcing (HRO)?

HR outsourcing (HRO) involves partnering with an external provider to manage tasks typically handled by an internal HR department. These tasks may include payroll management, recruitment, training, compliance, and benefits administration. Companies can choose to outsource all or select HR functions based on their needs.

For many organizations, this model offers significant time savings. By outsourcing HR tasks, businesses can shift their focus back to core operations and strategic growth.

The Cost of Outsourcing HR Services

The cost of HR outsourcing can vary widely depending on the service model chosen and the size of your organization. Here are the common pricing models:

1. Per-Employee, Per-Month (PEPM): This model charges a flat fee per employee on a monthly basis. It's one of the most commonly used pricing structures for HR outsourcing services.
2. Percentage of Payroll: In this model, providers charge a percentage of each employee's gross pay. This fee typically includes services like payroll and compliance management.
3. Per Service: Businesses are charged for individual services, such as recruitment or payroll, based on their specific needs, making it a flexible option.
4. Bundled Services: This is a comprehensive package that combines multiple HR functions, such as payroll and benefits administration, into a flat-rate service.

Learn more about global payroll outsourcing and how it simplifies managing international teams.

Types of HR Outsourcing Providers

There are various types of HR outsourcing providers to consider, depending on your company’s size and requirements:

• General HR Outsourcing Firms: These firms offer a broad range of services but do not assume legal responsibility for your employees. They handle operational aspects like payroll, training, and recruitment.
• Professional Employer Organizations (PEOs): PEOs are particularly useful for companies with international operations. They share tax and legal responsibilities with your business and manage functions such as compliance with local labor laws, making them ideal for companies that manage distributed or international teams.

Explore how Gloroots helps businesses through global outsourcing and why it’s key to global success.

Key HR Services Provided by Outsourcing Companies

1. Staffing and Recruitment
   Recruiting is expensive. The average cost per hire is $4,700 according to SHRM. HR outsourcing companies can handle this process at a lower cost.
   Learn more about recruitment process outsourcing (RPO) for affordable ways to hire the best talent.
2. Employee Training and Development
   Training is crucial but expensive for growing businesses. Outsourcing this service ensures your team receives proper training without extra costs.
3. Payroll and Tax Compliance
   Handling payroll and taxes across countries can be difficult. Outsourcing ensures compliance with local laws while saving time and money.
   Read about: Top 4 Payroll Innovations for Global Teams | Simplify Payroll with Gloroots 
4. HR Software Solutions
   Outsourcing HR software can help businesses save money, offering the same efficiency as in-house systems but at a lower cost.

Benefits of Outsourcing HR Services

Saves Time and Resources: HR outsourcing allows business owners to focus on expanding operations without being bogged down by day-to-day HR tasks.

Cost-Effective: By outsourcing, businesses can significantly reduce costs associated with employee benefits, legal fees, and HR management software.

Ensures Compliance: HR outsourcing firms, especially PEOs, are well-versed in employment regulations and ensure that businesses remain compliant, even when managing international teams.

Understand how global payroll outsourcing can streamline compliance and mitigate risk.

How Gloroots Helps Reduce HR Outsourcing Costs

Gloroots is a global employment platform that simplifies managing international teams. It handles payroll, compliance, and onboarding while helping businesses save money. Gloroots allows companies to expand globally without needing local entities, saving time and money.

Conclusion

Outsource your HR with Gloroots to save costs and streamline global workforce management. Trusted by businesses in over 140 countries, Gloroots handles payroll, compliance, and employee benefits seamlessly, helping you expand without the need for local entities.

With 24/7 support, global currency handling, and a dashboard for easy invoicing and reimbursements, we simplify your HR operations. For contractor management, our platform offers self-serve contracts, invoice tracking, and single payouts.

Ready to streamline your HR? Contact Gloroots today to optimize your global operations.

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FAQs

Q1: What is HR outsourcing, and why should businesses consider it?

HR outsourcing involves partnering with external providers to manage HR functions, saving businesses time, resources, and costs.

Q2: How does Gloroots help reduce HR outsourcing costs?

Gloroots offers comprehensive global HR management, including payroll and compliance, reducing the need for local entities and minimizing overhead costs.

Q3: What are the common pricing models for HR outsourcing services?

The main models include Per-Employee, Percentage of Payroll, Per Service, and Bundled Services, each catering to different business needs.

Q4: What types of HR services can be outsourced through Gloroots?

Gloroots handles payroll, recruitment, employee training, tax compliance, and HR software solutions, ensuring seamless international operations.

Q5: How does HR outsourcing ensure compliance for international businesses?

HR outsourcing providers like Gloroots manage compliance with local labor laws and regulations, reducing the risk of misclassification or legal penalties.