Navigating the complexities of human resources has become increasingly challenging for businesses, prompting many to explore HR outsourcing as a viable solution. Despite the proven benefits, myths and misconceptions still crop up and shroud the decision to outsource HR functions. In this blog, we will debunk seven common myths associated with HR outsourcing, providing businesses with the clarity needed to make informed decisions. This guide will help you separate fact from fiction if you are considering outsourcing your HR functions.

Myth #1: An Outsourced HR Department Will Have a Negative Effect on My Employees

A prevailing misconception is that outsourcing HR negatively impacts the employee experience. However, in a co-employment model with a Professional Employer Organization (human resource outsourcing) like CBR, employees often enjoy enhanced benefits. This includes access to tailored health insurance and voluntary benefits, providing them security. Additionally, outsourcing HR can lead to improved HR practices and strategies, offering employees peace of mind regarding timely payroll, accurate administration of benefits, and the assurance of a smooth HR administration process. Human resource outsourcings, like CBR, act as facilitators, benefiting the individual employee and the business.


Myth #2: I’ll be Giving Up Too Much Control of My Business

Another common concern is the fear of losing control when partnering with a human resource outsourcing. Businesses collaborating with an HR provider like CBR do not lose control; instead, they gain a strategic partner. This partner shares various HR responsibilities to ensure improved practices, strategies, and efficiency. Business owners retain control over talent management, including hiring, promoting, and firing decisions. Human resource outsourcing does not replace these essential functions; they support them, allowing owners to focus on core business operations.


Myth #3: Human Resource Outsourcing will Not Work with My Business Because It is Too Big/Small

A widespread misconception is that human resource outsourcings cater only to specific business sizes. The truth is the suitability of a human resource outsourcing depends on the particular human resource outsourcing itself. Companies need to find the right human resource outsourcing, such as CBR, that aligns with the unique needs of their business. Human resource outsourcings typically have varying minimum and maximum employee thresholds, making them adaptable to companies of different sizes. Finding the right HR outsourcing firm is crucial, but companies of just about any size can benefit from a human resource outsourcing partnership.


Myth #4: I’ll be Spending Money on Things that Aren’t a Necessity

Some business owners fear unnecessary expenses associated with a one-size-fits-all plan from human resource outsourcing. However, a reputable partner, like CBR, tailors its plans to save costs and increase the range of offerings to employees. Thorough research into human resource outsourcing ensures transparency about costs, allowing businesses to find a partner that optimizes services without incurring unnecessary expenditures. Often, small and medium-sized employers stand to save money and become more efficient through a human resource outsourcing partnership.


Myth #5: Human Resource Outsourcings are Too Expensive

The misconception that human resource outsourcing is expensive is refuted by statistics showing that human resource outsourcings help their clients save up to 35% on HR administration costs. Beyond cost savings, human resource outsourcings contribute to increased revenue and improved benefits, making them a cost-effective solution for businesses. A national report found that human resource outsourcing users’ annual median revenue growth was twice that of comparable non-human resource outsourcing firms. This dispels the myth that human resource outsourcing is too expensive, showing that the financial benefits outweigh the costs.


Myth #6: If I Outsource Human Resources, I’ll Have to Fire My HR Department

Contrary to the belief that human resource outsourcings replace in-house HR teams, they can also complement them. HR personnel benefit from additional resources and support in tasks such as compliance. In many cases, HR personnel benefit from a human resource outsourcing partnership as they gain other resources to make their jobs easier. The collaboration between in-house and outsourced HR teams allows businesses to maximize their expertise for optimal results. The decision to bring on human resource outsourcing does not necessitate the termination of the existing HR department; instead, it enhances its capabilities.


Myth #7: Changing to Outsourced Human Resources Too Difficult

Sometimes, business owners hesitate to choose a human resource outsourcing company because they believe transitioning to one will be too difficult. However, this is far from the truth. Most human resource outsourcing, including CBR, have dedicated teams to help new clients transition seamlessly into the human resource outsourcing relationship. These professionals specialize in HR management, compliance, payroll, benefits, and onboarding. They guide business leaders through the onboarding process, ensuring that the transition is smooth and that they are well-prepared for the implementation date. Moreover, these human resource outsourcing team members stay connected even after onboarding, providing ongoing support for various HR topics.


These myths, once debunked, reveal the substantial benefits of HR outsourcing, primarily through a reputable human resource outsourcing like CBR. As the business landscape evolves, outsourcing HR becomes not just a strategic move but a necessity for growth and efficiency. Understanding the truth behind these myths empowers businesses to make informed decisions and leverage the invaluable assistance of human resource outsourcing. If you’re ready to explore the benefits of HR outsourcing, connect with our team at CBR. In summary, outsourcing is smart, particularly for businesses on the path to expansion. An outsourced HR team’s assistance is invaluable, allowing you to focus on growing your business while leaving HR complexities to the experts.


CBR is Your HR Team

At CBR, we pride ourselves on offering tailored services to suit your business’s unique needs. Our seasoned professionals, years of expertise, and robust infrastructure save you time and resources, enabling your business to reach its true potential.

Leveraging our human resource outsourcing services means you’re not just outsourcing tasks but gaining a strategic partner committed to your success. Let us handle the minutiae of HR, benefits, and payroll, enabling you to focus on growing your business.

We invite you to reach out to us and schedule a free consultation. Let us demonstrate how our services can help your business run smoother, free up your time, and bolster your bottom line. Embrace the power of human resource outsourcing with CBR and elevate your business to unprecedented heights.