Arizona's Favorite Payroll Company!


Posted On: 04/23/2024 / Payroll Services
Text Goes Here
Home » Resources » Blog » Outsourcing HR to Benefit your Business

Among the biggest changes in the HR industry are options that have been designed beyond the organization’s needs. Today, they are more employee-centric, and this is a win for your role in the business and your direct reports.

Part of the largest technological advancements in the HR industry today is the number of outsourcing services and tools available. In fact, according to a published report by Markets and Markets, the global core HR software market has been projected to grow 52.86 percent. In 2017, the industry was worth nearly 6.5 billion USD, and by 2022, it could encroach 10 billion USD! The biggest driver of this growth is the increasing interest and demand for cloud-based HR solutions.

The HR services and tools available today limit the headaches and common complications with HR management. Managing books, onboarding employees, and preparing tax withholding documents all need careful attention to detail. But the problem still ensues – which one should you choose? Which HR function(s) should you solve with outsourced HR solutions?

HR solutions for your business needs

First – it’s important to weigh what is most important to you as a business owner or as a general manager. Which operational functions do you enjoy the most, and which ones make you cringe or sweat with anxiety? Once you separate the roles that are entangled with operational management, it becomes clearer the “what,” “why,” and “where” you should outsource certain HR responsibilities. The added stress of handling something outside your expertise just is not worth it.

Let's Get Started



What is the role of HR?

When you are in the everyday details of your business, it’s easy to forget what HR even is. Human resources (HR) has a wide umbrella span from being the liaison between you and your employees to the financial details of payroll taxes and benefits management.

What are HR solutions?

The solutions available within this thriving industry includes a wide variety of HR roles. If finding employee talent and onboarding them is your weakness, work with HR solutions providers. If your budget doesn’t cover the latest training materials, you will find outsourcing talent management and training as more affordable for tight budgets.

Does your head spin when working on payroll management and payroll taxes? Arrange to have it handled outside of your office. If you can’t stay on top of federal and state requirements, you can hire an HR professional to manage this for compliance.

How does HR outsourcing work?

Most, if not all, HR outsourcing solutions are a vendor-to-business relationship. It can be quite the process to find a company that gives the most comprehensive service possible without complicated processes. Once found, you arrange a contract and pricing model that makes the most sense for your business’ needs.

Why do companies outsource HR?

Business owners everywhere admit some operational functions are too time-consuming for them. Another common complication is confusing technology that takes up more time than it’s worth.

Outsourcing HR gives companies’ general managers and owners, like you, more freedom to focus on the details you excel at. It also gives you the ability to take advantage of the latest technology your business cannot afford otherwise. Streamlining efforts may be a cost you didn’t expect, yet avoiding the simplicities and opportunities possible can be detrimental to your business.

What areas can outsourced HR solutions enhance?

Every business owner has a different definition of which HR solutions will best help them. The outsourced HR solutions available through Pay-Tech include:

  • Hiring top talent
  • Employee onboarding and training
  • Managing HR compliance
  • Payroll taxes
  • Employee time cards and self-service options

You control exactly how much help you need for your business. We’ll handle all the busy work while you work on keeping both your customers and employees happy.

Let's Get Started



Recruiting and retaining top talent

It’s time-consuming to comb through hundreds, sometimes thousands, of resumes – most of which are unqualified individuals. Outsourcing talent management saves you hundreds of man-hours by narrowing your applicant pool. You’ll only need to interview the select few that are worthy of your time.

Retaining your top talent is also a cinch when these responsibilities are outsourced. Your HR solutions provider can pre-schedule and conduct performance evaluations at 30 -, 60-, or 90-days after hire. If desired, they can also handle performance reports set by quarter, biannual or annual occurrences. These performance reports are recorded autonomously and are accurately timed.

Hiring top talent

When talent recruitment is done outside of the general management team, it makes hiring top talent a much smoother process. There is simply much more adept technology for screening and recording applicants beyond the pen-and-paper methods. Your team can still play an active role in the hiring process but without all the busywork and paper management.

Employee onboarding

Once a talent has met the criterion expected for the position, the employee onboarding process begins with an official offer letter. When the documented offer is accepted, the employee starts establishing their employment. This process continues with the W-4 election (payroll withholding), benefits selection (when applicable), and any other details that coincide with their hire date.

Talent management

At the core of attracting and retaining excellent individuals for your business is talent management. You can have the catchiest job postings and the most attractive benefits packages yet still fall short.

Your direct reports need to be engaged and want to thrive in their roles. Being transparent and grateful when your employees exceed performance expectations is rewarding in many ways for all. When you recognize great service, you’re cultivating retention. You are also encouraging demand to move up within your organization.

Diversity and inclusion

When you’re busy running the daily operations, it can be hard to keep up with the latest HR compliances affecting diversity and inclusion. It is a micro-scrutinized topic these days that supersedes respecting an individual’s demographic factors and disability status.

The definition today requires businesses to embrace diversity, arrange and communicate adequate accommodations, and provide a truly safe space. Honoring these key factors can be the pinnacle difference between your company and your direct competitor. Those that do this successfully will quickly be recognized internally and externally.

HR learning and development

Outsourcing training materials allows your company to have access to the latest training videos, modules, and cloud-based employee monitoring available. It’s quite valuable to have programs that can assess far beyond the main training theme.

By recording key performance indicators and training results, you get more intuitive data of your workforce. It also provides insights for your business’ performance projections. Ultimately, you can see where strengths can be capitalized, and weaknesses can be improved.

Benefits of outsourcing HR services

Choosing to outsource your HR department is a more than worthy investment into your business and your workforce. By filling HR efforts outside of your business, you will see overhead costs decrease in the long term. Your internal data will be more protected, and you may uncover more robust employee benefits to improve retention. The right partner can even help you navigate unprecedented professional challenges such as sexual harassment and discrimination claims.


Managing your business operations is more than a full-time job. Staying atop of the latest federal and state-mandated IRS and HR compliance agendas is not an easy feat either. One of the many benefits of seeking HR support is that your vendor can manage these compliances for you. They can help get you up to speed or make recommendations of actions to take before deadlines.

Cost savings

Hiring an HR professional is a cost, but having someone else handle the minute details saves you more in the long run. It is more cost-effective than making a detrimental mistake in payroll taxes. Plus, with some partners, you could do away with investing in costly annual HR software fees altogether. Meanwhile, you’ll still have access to cutting-edge HR software technology with tight security and protection.


Businesses still operating with paper records face a higher risk of data leaks or loss and illegible handwriting. When you outsource HR functions to an external partner, electronic methods of communication eliminate paper waste. Plus, many software options include secure data back-up to protect your business’ information. Records are routinely archived and easy to retrieve as needed.

Also available today are employee self-serve options. Your workforce can access information while on-the-go with unique credentials.

Reduced turnover

Training is one way to limit high turnover. Having a clear schedule of performance evaluations with attainable key indicators is another way to secure employee satisfaction.

Turnover decreases when employees understand what areas they are working towards for merit increases or promotion opportunities. By outsourcing talent management, review schedules can be established based on hire date. All the information is then recorded in a cloud-based system for security and easy retrieval of employees’ files.

Benefits expertise

Lastly, as a business owner, managing benefits can be a whirlwind of information. It alone can be a full-time job in and of itself, especially if your workforce is sizable. By outsourcing HR benefits management, you gain valued relationships with experts who focus on all types of benefits packages. They can help you when you plan to make certain items more scalable as you grow.

Let's Get Started



How much does outsourcing HR solutions cost?

Your business’ HR needs will be the ultimate deciding factor in the total cost of outsourced HR solutions. Many, if not all, are recurring costs that will be factored into your overhead. But remember this – a nominal monthly fee is better than facing a detrimental IRS audit or a diversity/inclusion lawsuit.

PayTech’s pricing packages are competitive in value with local experts ready to handle your business’ unique challenges. Other vendors will have similar price structures like these:

A La Carte

Simplistic option with exact pinpointed responsibilities
Higher one-time or recurring fee


Hand-selected package with a range of responsibilities
Average one-time or recurring fee


Value-based option with pre-packaged common features;
may include optional responsibilities
Best value for a one-time or recurring fee


Competitive option with widest pre-packaged common features
Better value for a one-time or recurring fee

Is it time for outsourced HR solutions?

You do not have to manage HR operations alone. It is possible to have well-rounded business operations. Outsourcing lets you focus on the business operations you excel at and cultivates a well-communicated environment on your behalf.

PayTech is here to help and is different than other HR solutions providers. We visit your business and work on building that vendor-to-business relationship from the start.

Only need a one-time solution? Need an on-going plan? Our pricing options are transparent and can be tailored to your business’ needs. Start a conversation with us today, so we can take your business to the next level!

Text Goes Here