HR Solutions: 5 Key Reasons to Outsource HR Services


November 9, 2023

The competitive business landscape is always demanding companies to achieve higher growth with fewer resources and a lesser budget. Especially in support functions such as Human Resources, extending large expenses to maintain a team and HR technologies to handle payroll management may often be frowned upon. Consequently, many small to mid-sized businesses are turning to HR outsourcing services that render professional HR expertise at much lower costs. That aside, there is a myriad of benefits why many are engaging HR services and payroll outsourcing services in Singapore. Read on to find out the top five benefits.

Benefits of Outsourcing HR Services


One of the key reasons why many companies outsourced their HR function lies in cost savings. According to Harvard Business Review, outsourcing reduces almost 20 to 30 percent of annual in-house HR costs. Because outsourcing means paying only for outsourced HR tasks, companies can do away with hefty monthly salaries of in-house HR employees, and investment in HR technology and process automation. Ultimately, more resources can be channelled to profit-generating initiatives to grow the business.


Companies need to comply with many employment laws and income tax regulations. These requirements are complex and require regular updating to ensure employees are legally employed within compliant limits. For companies with operations overseas, compliant issues may even reach a whole new level since their in-house HR team may not always be well-informed about foreign employment regulations. By outsourcing HR, companies can tap into expertise that is well-versed with employment regulations across different markets and apply outsourced payroll solutions and initiatives to minimise exposure to legal risks associated with labour laws and HR practices


It is expensive to update new HR technology and outsourcing allows companies to gain access to the latest HR solutions without having to invest in an entire infrastructure. Cost savings aside, this enables small businesses to leverage technology for more efficient HR workflow despite not having bigger budgets like multinational corporations (MNCs). Reportedly, PwC’s HR Tech Survey 2022 has found that the use of technology has proven to increase productivity and efficiency. It is also a sound cost-reduction measure for HR functions, especially amidst the chaos that was brought along by the arrival of Covid-19.


Outsourcing HR functions allows the management to focus on building the core business and takes away the stress of managing tasks such as payroll management which is very labour intensive and requires meticulous attention. Outsourcing to an external party like an HR payroll service provider empowers employees to pay attention to value-added activities and profit-making projects. This often translates to more time for brainstorming opportunities and even developing new business ideas that increase revenue streams.


HR service providers usually have strong relationships with health insurance providers. By engaging them, companies can easily benefit from securing employee insurance packages at preferred prices, hence saving more HR-related costs. Furthermore, companies no longer need to deal with the ever-changing regulations pertaining to employee health insurance provisions. The outsourced payroll solution provider will take on the role of ensuring the company stays compliant with local employment laws, negotiates lower insurance rates and ensures employees are fairly compensated.

Dependable HR Outsourcing Partnership

HR outsourcing is often a successful formula for small and mid-sized companies that understand the importance of optimising their resources. When they partner up with trusted HR service providers like Liberte Consulting, they’ll not only stand to gain from significant cost savings but also increased productivity and efficiency.

Liberte Consulting is an award-winning HR consultancy and service provider in Singapore with immense expertise in HR and payroll outsourcing services in Singapore. Liberte helps clients of all sizes achieve better business outcomes with their personalised touch and innovative partnerships. Speak to us to get started with HR outsourcing today.

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