As we move into the new decade of the ‘2020’s, HR outsourcing is predicted to play an increasingly important role in many organisations’ long-term growth strategies.

It is widely accepted there are numerous benefits when it comes to outsourcing tactical and strategic HR tasks to a Human Resource Outsourcing (HRO) company.  This practice lets organisations focus on their core business area as specialist HR functions are given to experienced HRO professionals who have the time and expertise to fulfill many of the requirements of an HR department.

According to a recent article by, in 2020 the demand for human resources outsourcing will continue to grow, and with ongoing advances in technology streamlining HR departments and staff cutbacks, HR functions will need to be fulfilled externally.

Human resources management is fundamental to any business so hiring an HRO is a smart business move.  It can reduce costs in hiring permanent HR staff yet allows all HR functions to be effectively fulfilled and managed including hiring, training, recruiting, payroll and compliance.

It’s clear the times have already changed when it comes to the modern workplace. In 2020 and beyond, it is important HR play a leadership role in sustaining an organisation’s most valuable asset — its people.

As noted in the Deloitte’s 2019 Global Human Capital Trends report, ‘The relentless acceleration of technology and disruption in political, economic and social spheres is impacting work, workers and employers like never before’.

Here are four HR outsourcing trends to watch in 2020 to help you set out a clear HR outsourcing strategy identifying key points that outsourcing will mitigate.

Artificial intelligence

According to HR Executive, “AI or Artificial Intelligence in human resource technology is also influencing the growth of HROs”.  A clear example of this AI in action is the process of keyword scanning and sorting of CV’s to select potential candidates based on the skills and experience required for the role.

AI technology for recruitment is evolving daily with new and improved ways to streamline or automate certain parts of the recruiting workflow, especially repeated, large-scale tasks being made available for improved HR efficiencies, and supporting the outsourced model.

Changing regulations

As the changes to HR and workplace regulations multiply, both at state and federal government levels, the need for an HRO partner rises.  Internal HR departments may not be equipped to deal with the pace of changing regulations or keep up to date with new labour laws, and this may have significant consequences to an organisation.

HRO professionals keep abreast of changes to employment laws, advising their clients on what and how they should comply with any new laws and regulations.  It is expected the numbers of small businesses to use the services of an HRO in 2020 and beyond will grow substantially.

HR technology for analytics and data management

Without question data management and HR analytics play a large role in all modern HR processes and strategies.  Analytics can transform how HR operates with insights that can actively and meaningfully contribute to a business’s success when used smartly.

This an increasingly complex area for many businesses.  Centralising, sorting, processing and handling employee data, meeting and fulfilling compliance obligations, managing HR functions management ie leave, performance reviews, and payroll operations require a robust system.

It is in the area of functional data management and specialised HR analytics, the demand for HRO professional services is gaining traction.

Additionally, businesses are leveraging HR technologies for outsourcing payroll services to a professional HRO supplier, saving on costs and improving performance.

Wellbeing in the workplace

The hype around “workplace wellness” hasn’t abated in 2020. Research shows happy and healthy employees are more productive, take less leave, stay longer, and want to come to work.

Positive and productive workplaces also give organisations a competitive advantage in attracting and retaining talent.

Outsourcing workplace wellness management to a specialist HRO agency or consultant to manage and develop employee wellness programs is another area the outsourcing of HR services is expected to grow.

Centastaff can assist with your HR outsourcing

HR outsourcing trends will impact HR departments of all sizes in the coming decade.  By being prepared and developing a clear HR management strategy, you can stay ahead of the curve.

Consider finding an outsourcing partner that aligns with your business goals and empowers you to create a modern employee experience with real results.

Are you looking to outsource human resources for your professional business?

Here at Centastaff, we implement effective management tools and aim to provide you with high quality service that will further contribute to the direction and success of your business. We strive to provide value and support in the pursuit of HR excellence with our clients and their businesses.

If you are in need of human resources support, please call the Centastaff team today.

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