Strategy · HR glossary

HR Outsourcing

HR outsourcing assigns selected HR activities to an external provider. The scope can range from payroll administration to advice or service delivery, while the employer retains relevant legal responsibilities.

Example

A small business uses a provider to administer payroll and benefits while its managers and internal adviser retain responsibility for employment decisions.

What to keep in mind

Specify service scope, approvals, data protection and escalation routes. Outsourcing the activity does not automatically transfer liability for inaccurate pay, unlawful decisions or misuse of employee information.

Further reading

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