Market for outsourced human resources to grow tremendously

HR outsourcing services offer businesses a number of benefits. Not only does it lower operational costs by bringing down overhead, but it can also make a company more efficient by removing the management of back-office functions that require close attention to detail and can generally be time consuming. These services offered by third-party companies are so valuable that TechNavio estimates the global human resources outsourcing market will have a combined annual growth rate of 12.34 percent until 2018.

This means that companies are seeing the value of partnering with an employer of record to manage HR-related tasks and the popularity of these organizations will continue to rise. However, this raises a very important question: How to go about hiring the right HR outsourcing organization?

Entrepreneur Magazine offers some useful suggestions for company owners to follow when selecting an employer of record:

• Start wide, then narrow down: To find the right HR outsourcing services, it is best to speak with a wide range of companies and then narrow the list down to a few. Gauge them based on the services they provide and work to uncover the history of the organization. A small-business owner can even interview current clients to get a feel for the company.
• Sit down with them: Before making a decision, it's important to conduct a face-to-face meeting with all of the key players within an outsourcing company. This will give them a better feel for the company owner, while the entrepreneur will have a thorough understanding of how the relationship will go.

These are just a few of the thought-provoking items that an owner of a small to midsized company would need to consider when making the choice to establish a business relationship with an employer of record.