5 benefits of outsourcing


Why Outsource HR Services?

If you’re an employer or business owner, you know that managing a workplace can be a challenge, even on the best of days. There’s a lot of moving parts to keep on top of. Between compliance issues, day-to-day operations, complaints, employee satisfaction, resolving disputes, fostering a positive workplace culture and more, it’s not unusual to find yourself stretched, thin and tired.  

Enter the picture, HR outsourcing. Why? Simple: Regardless of whether your org structure recognises this or not, HR is often the backbone of your business, keeping your most important asset – your people – productive, safe and resilient. Strengthening that backbone with professional and expert assistance can drive a positive ripple effect across your workforce, and lets you focus on what you can do best – running your business. In particular, if you’re an SME (small & medium enterprise), HR outsourcing can prove especially incredibly instrumental in setting up a solid foundation for business performance and growth.

How? Read on to find out as we explore the top 5 benefits that SMEs can gain when outsourcing their HR needs!


As the adage goes, time is money! When you’re running an SME, time is particularly precious and trying to handle HR, admin and compliance issues can quickly turn into a rabbit hole exercise. In addition to being time consuming, the HR work can be incredibly complex, confusing, and overwhelming, especially when there are frequent changes to workplace law that occur throughout the year. Therefore, trying to stay abreast of current changes and incoming changes whilst managing operations is tiring and can force you to make compromises on business operations and performance.

Further, HR isn’t just focused on admin & compliance; it also is the portfolio in charge of the people that make up your business, and dealing with things like dispute resolution, performance management and monitoring employee experience can quickly lead to mental & emotional burnout when added in on top of everything else. The results can be detrimental for you, your business, and your people.

By outsourcing HR, you’ve now got trained and experienced experts in the field, handling all the essential nitty-gritty that encompasses the HR portfolio. You now not only have more time, energy, and capacity to focus on matters of priority but can do so assured that there are professionals working to support you and ensure your peace of mind while doing so. When operating and managing an SME especially, the level of mental and emotional support – alongside the more practical and logistical support – that outsourced HR professionals can provide you is often times immeasurable in worth when it comes to helping your business not only stay afloat but flourish too!


It’s no secret that compliance can make or break a business and employment law in Australia is particularly complex to try to navigate. Non-compliance, even if accidental or unknowingly done, can lead to huge financial, legal, and reputation related repercussions for businesses and can be especially damaging, if not fatal, for SMEs.

Ensuring you’re remaining compliant and keeping ahead of the curve in compliance matters can be a massive burden for any SME, especially when updates to employment and workplace law happen so frequently throughout the year.

That’s why HR consultancy and outsourcing services are particularly beneficial for SMEs. Not only do they guarantee peace of mind and take the burden off you and your staff when it comes to compliance matters, but you can often tap into a wider and more specialised knowledge base when outsourcing compared to the limitations of in-house HR services. HR consultancy firms are usually made up of highly trained consultants who have a far reaching and deep experience. They’ve often worked across many HR portfolios across a range of businesses and have a well-developed know-how in dealing with and navigating the complex employment law waters. You can rest assured that compliance is well taken care of when you’ve outsourced your HR needs to a professional firm!


Developing and maintaining a positive and health workplace is instrumental in the growth and success of an SME. Poor performance can be costly and employee wellbeing is vital to ensure your business is performing at its maximum potential. It’s important to have a solid foundation and start out on the right foot, and outsourced HR can provide immeasurable support in areas of workplace culture and leadership.

Outsourced HR can help improve performance by assessing and addressing issues that may be affecting productivity in your workplace and/or contributing to a less than ideal workplace culture. They can also help you with employee performance management, conduct in-depth and thorough workplace training on several topics, revising existing policy and procedure and help improve dispute resolution mechanisms and channels. Further, compared to in-house HR, outsourced HR will remain objective and therefore be able to provide you with detailed, specific, and independent advice and assistance to help build and improve your current practices.

Through their experience and accumulated skillset, outsourced HR personnel can help readily strengthen the backbone of your business leadership & help foster a thriving workplace culture.


Recruitment, retention and performance are the three key areas of HR and are largely determined by the capability of your HR professionals. As such, investing in human resources is essential for all businesses. The benefits of doing so include:
  • Improved performance: Employees who feel valued and supported are more likely to be productive and engaged in their work.
  • Reduced staff turnover: A happy and motivated workforce is more likely to stick around, saving the company money in recruitment and training costs.
  • Enhanced reputation: A company with a good HR record will be attractive to job seekers, making it easier to recruit top talent.

HR consultants can help employers in all aspects of human capital management, from recruitment and selection to performance management and employee relations. By outsourcing, you also tap into a wider talent pool for recruitment and have trained and experienced professionals at the helm of managing your employee onboarding & management needs.


HR outsourcing can help you save precious financial capital in several different ways. Firstly, when outsourcing, you can remain confident that you’re getting top-quality services for every dollar that you’re spending. As explored above, outsourcing means having specialist and expert personnel in charge of one of the most important departments in your business.

Secondly, when outsourcing you can save on the cost of hiring and training in-house staff. Your outsourced HR team comes trained, experienced and ready from day 1!

Finally, having expert HR guidance means saving on the costs that can arise from things like:

  • Non-compliance penalties, such as underpayment and unfair dismissal claims
  • Costs of seeking training & development programs in addition to in-house staff costs
  • The costs of poor employee relations, employee performance and talent management
  • Dispute resolution, including issues and disputes arising from poor workplace culture and policy


There are many more benefits of outsourcing HR for SMEs – the above five are just the tip of the iceberg!

Outsourcing can be a big decision, however, and it’s important that you evaluate your current business’ needs – and we can help you with this!

Workplace Wizards is the HR consultancy of choice for many businesses in Australia. Whether you need help with human resources strategy, organisational health and wellbeing, or managing workplace culture, our team of human resources consultants can assist you. We have a wealth of experience across a range of industries and sectors and are experienced in delivering HR solutions to help you overcome industry challenges. 


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