Outsourced HR Services: 5 Most Common Misconceptions Debunked


Today, it’s more evident how outsourcing human resources staff has become one of the major contributors to boost company growth and employees’ overall development in the corporate world.

However, there are still false or unreasonable misconceptions surrounding the atmosphere concerning the idea of outsourcing HR services and/or functions. 

And to slowly eliminate the false accusations about HR outsourcing and to finally give a beam of hope for thriving outsourced HR providers, this article put these 5 major misconceptions on the backburner one-by-one. 

Thus, if you’re a company owner or manager who’s still hesitant of trying out outsourcing HR professionals, you’re advised to stay with the next pages and find out the truth about HR outsourcing.

Misconception #1: Outsourcing human resources staff won’t make employees feel at ease

One of the primary misconceptions regarding outsourcing human resources staff is that it won’t make employees feel at ease at all compared to when a company has internal HR professionals. 

This might be for the reason that most employees feel being de-prioritised and their talent and culture will be set aside as the company opens its door for the possibilities of HR outsourcing. 

While having an in-site human resources staff isn’t a downside at all, just know that outsourcing HR services and/or functions will do no harm nor hinder the overall development of each employee. 

This kind of dilemma can be prevented as long as you communicate efficiently with your workforces and state that the initiative to outsource HR staff won’t put their growth at stake. 

But rather will contribute to their work-life balance and will provide a great opportunity to practice the best ways to boost each other’s performance at work. 

Misconception #2: An outsourced HR support is an additional burden to the company’s expenses

Some companies and/or managers block the idea of outsourcing human resources staff with the misconception that it’s an additional burden to the company’s financial expenses. 

But in fact, outsourcing HR services and functions actually helps in reducing the budget of the company in order to provide a commendable HR support not only to the company but most primarily to the employees. 

Moreover, by acquiring the services offered by the chosen outsourced HR providers, you don’t have to allocate a specific budget for job postings, hiring, recruiting, providing proper training for new hires for a human resource department or management. 

Aside from that, you no longer have to provide a specific office area for the whole department nor to buy the specific office supplies and computing equipment needed in order to operate.  

Misconception #3: An outsourced HR support is only affordable for big companies and/or long-running firms

The concept of HR outsourcing seems very expensive for some companies most especially to startup or small businesses.

With the thought that the context of HR outsourcing is only applicable and affordable for big companies and/or long-running firms, many are still hesitant of trying it out. 

However, if you’ll take a look at the bigger picture, HR outsourcing can extend its utmost assistance to any company of all shapes and sizes. 

Whether you own a startup, small or medium-sized enterprise or a big company, outsourced HR providers can guarantee to give their fullest service and attendance to your needs. 

Outsourced HR providers hands down a more economical solution for startup and small companies if needed. 

Misconception #4: An in-house HR support is more credible and reliable than that of the outsourced

Another misconception on the list points out to the credibility and reliability of an outsourced HR support and functions compared to the internal HR management. 

To break this concept, you need to know that outsourced HR providers have enough amount of credibility and reliability to operate and to serve in the corporate world. 

Relying on outsourced HR provider will give you more time to focus on the other needs of your company. 

Also, outsourced HR providers guarantee that you’ll be up-to-date to such changes in the labour laws, help you keep up with the payroll on time, and more. 

Misconception #5: Outsourced HR staff don’t get what you truly need

To clear things out, outsourced HR providers aren’t made to lead your company but to provide assistance and attend to your HR needs. 

Hence, the misconception that outsourced HR support doesn’t really get what the company truly needs as compared to the in-house human resources department isn’t acceptable. 

The outsourced HR professionals are very much on-hand on doing their job and on finishing the given tasks to them. 

You just have to provide them with the most needed information or details and appropriate tasks. 

The Bottom Line: 

The outsourced HR professionals are more like your partner and not a liability or a threat to the growth of your employees and to the progress of your company. 

Availing or acquiring the help and assistance of outsourced HR providers is like knowing the art of racing in the rain. 

If you think missed out something or you have a minor question in your mind, don’t hesitate to reach out to us. 


Kath Ramirez embraced the dream of being a writer since she was in 4th grade. She took it seriously and she now writes for HR Dept HR Services UK, a company in the United Kingdom who provides human-resource assistance. Aside from writing, Kath also keeps herself busy spending time with her family, cherishing the role of a mom to her furbabies, reading random books, and diving into the world of photography. She’s not even a pro to whatever she’s engaged into right now, but one thing she knows, she’s happy and that’s more than enough.