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​When Is HR Outsourcing Right for Your Organization? | Nonprofit Quarterly

Fall 2008

by Simone Putnam

Human Resources (HR) outsourcing can address some of the staffing and skill- related problems that plague small and budget-strapped nonprofits. For these organizations, staffing an HR department with the right combination of full-time employees who have the right expertise can be a tall order. As a result, these organizations’ HR departments may suffer from a dearth of employees or critical skill gaps.

Because of financial or time constraints, many organizations try to get strategic and managerial expertise from the same hire. As a result, they may hire a lower-level HR professional who lacks crucial strategic or managerial skills, or they may opt for a high-level professional who isn’t interested in managing the day-to-day activities of the HR function. In either case, hiring an inadequately skilled employee only adds to organizational costs and creates greater inefficiency.

But the fact is, some organizations don’t need to fill a skill gap or address a pressing HR need by hiring a full-time employee. Instead what they need is help from an external provider. HR outsourcing enables organizations to focus on their core mission while entrusting HR functions to professionals who can devote the right level of expertise at the right number of hours necessary for each organization’s particular situation.

Read the Nonprofit Quarterly Magazine article.