5 Reasons You Should Outsource Your HR Services

There are many reasons why a company would choose to outsource their HR services. In fact, many business owners make the decision to outsource Human Resources when they realize just how many ways it can benefit them. Business owners with a firm understanding of Human Resources outsourcing are often eager to contract an HR consultant rather than develop an entire inhouse team.

When you’re expanding your business internationally, the nuances of HR become more tricky. An inhouse HR department may prove difficult and costly to staff.  It’s vital that you know the facts about outsourcing HR on a global scale to inform your decision.

Let’s take a look at the 5 main reasons why small and mid-sized businesses choose to outsource their HR services.

Outsourcing your HR services can save you time, money, and stress, among other benefits!

An HR manager during a job interview

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1. Outsourcing Your HR Services Will Save You a Lot of Time

One of the first things that our clients notice is how much more time they have available.

So often, the tasks associated with HR at small businesses end up being assigned to people who already have a lot of work to do.

You may have thought when opening your business, “Well, we don’t have many employees, so how difficult can HR be?” And then you realize that even if your business is small, the HR workload can be intense! Small business HR outsourcing solutions might provide the cure for your staffing woes.

Outsourcing means that you can relinquish the following time-consuming responsibilities to an expert HR representative:

  • Payroll enrollment and management
  • Staffing the HR help desk
  • Benefits management
  • Writing policies, handbooks, and procedural guidelines
  • Most administrative tasks related to your employees
  • Recruiting new employees
  • Onboarding new hires
  • Employment contract management
  • Employee training
  • Managing terminations, severances, and retirements

Additionally, an outsourced HR consultant can do this work much faster than someone at your company, as they have tons of experience. There is no learning curve needed to master new technologies, software, policies, or processes. Instead, your new HR team can start immediately and have more effective policies implemented right away.

2. HR Outsourcing Can Save You Money

It’s not uncommon to hear small business owners say, “I can’t afford to have someone do my HR work.”

What these business owners don’t yet understand is that their way of running HR is likely costing them more money in the long run. So how can you work toward achieving cost efficiency through HR outsourcing?

Outsourcing your HR means you never have to onboard a dedicated HR professional or team. You get the benefit of professional knowledge and experience without the need to pay additional salaries and benefits packages.

When your HR tasks become too overwhelming for your current team to manage, contracting with an outside vendor is far more cost-effective than hiring a full-time HR representative.

Additionally, outsourcing frees up countless hours of work time that were previously spent on HR tasks. If it was taking you 5-10 hours a week just to manage your human resources responsibilities, outsourcing is basically the same as giving yourself 5-10 more hours in the week to grow your business!

3. Outsourcing Alleviates Your Stress

Workplace stress is a serious problem, and it’s costing European businesses billions of dollars.

Some of the problems that can lead to workplace stress and burnout include:

  • Long hours
  • Boring work responsibilities
  • A workload that is too heavy
  • Too many tight deadlines
  • Job uncertainty & insecurity
  • Major changes within the company
  • Low compensation

For many small business owners, managing the HR workload is just another stressor. It is often full of tight deadlines and repetitive work. Plus, you have to constantly learn new things about the HR industry, even though that’s not your passion or your skillset.

Outsourcing alleviates stress because you get to let go of the overwhelming responsibilities of HR work. You no longer have to worry about making costly mistakes by not understanding the ins and outs of a specific law.

If you are an international company with employees in multiple nations, the stakes are even higher to get everything right. There is a huge benefit to hiring someone whose job is to know the employment laws of each nation your company is in!

4. Outsourcing Reduces the Number of Vendors You Have to Work With

When you choose the right HR company, you can reduce the number of vendors and contractors you have to manage.

This is especially important for businesses that operate internationally. You want to find an HR company that can handle tasks that often fall to multiple vendors, contractors, or additional employees.

This includes:

  • Benefits consultants
  • Recruiters
  • Payroll vendors
  • Corporate and labor lawyers
Smiling HR management reading the applicant's resume

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5. Outsourcing Your HR Can Solve Short-Term and Long-Term Problems

Outsourcing should never be a one-size-fits-all situation.

Instead, you can outsource HR in a way that works for you and your unique circumstances. Do you need a long-term contract with an HR company who can take over every single part of the human resources experience, or do you just need help with an upcoming project, such as an international expansion into Europe?

At Europe HR Solutions, we have more than twenty years of experience with numerous businesses, each of which needed something slightly different than anyone else.

For example, we have served our clients’ long-term and short-term needs in the following ways:

  • Annual agreements
  • Multi-year agreements
  • Short-term agreements (weeks or months)
  • Project-based contracts
  • Interim HR services during a period of transition
  • On-site, remote, and hybrid services

The goal of outsourcing your HR services is to find a company that will adjust to what you need, not try to fit you into a box!

Outsource Your HR Services to Europe HR Solutions

Europe HR Solutions supports the HR needs of more than 200 companies with an international presence in Europe.

Our team is made up of multilingual HR experts who understand the unique challenges of businesses that operate internationally. We assist with or completely handle your recruitment needs, onboarding, employee training and professional development, benefits administration, compensation research, HRIS system implementation, and coordination of European payroll – among many other things! We are your international HR outsourcing providers.

Contact us for a free consultation! We look forward to helping you develop an HR strategy that will give you all of the benefits we’ve listed here – and more.

Business owner surrounded by paperwork, indicating the need for HR outsourcing

How outsourcing HR can save money

If you own a small or mid-sized business, you understand how frustrating it can be to spend time and money on tasks that don’t generate revenue. The costs of building an HR department from the ground up can prove astronomical. 

When you’re launching your small business in a foreign country, especially, you’ll need HR solutions before you open your doors for daily operation. Europe HR Solutions can help.


The right outsourced HR team can reduce your ongoing costs in the following ways:

  • Payroll administration:

By outsourcing your HR, you can bring in vetted professionals to set up and administer your payroll system. This team can train you to ensure a seamless transition after their service contract is completed. 

You won’t have to stress over hiring long-term employees to take care of payroll, or training payroll administrators.

  • Benefits implementation:

Your outsourced HR team can help you to select the right benefits software package and enroll the employees of your small business.

  • Human resources management:

Outsourcing your HR can prove to be a game changer for your overall human resources management, too. HR consultants contribute through a wealth of experience in compliance, employee relations, and recruitment.

This saves valuable time for small business owners, mitigates the risk of legal issues and delays in operations, and provides access to the latest industry best practices and trends.

When it makes sense to outsource HR for small businesses  

International companies with fewer than 50 employees are considered small businesses, and rarely expand to Europe with an inhouse HR team already in place.

For US and UK-based small businesses that launch European operations, there’s usually a CFO who oversees broad HR tasks. 

However, the CFO or other executives managing HR for a small business launch in Europe often lacks the country-specific legal and HR expertise necessary to ensure innovative solutions that reflect the country’s best HR practices and legal compliance.

It’s important to consider the following when determining whether or not you should outsource your HR:

  • What specific HR services and support does your business require?
  • Do you have anyone on your team who’s well-versed in country-specific employee regulations and labor laws?
  • Will you need management compliance training and support?
  • Will your current employment handbook, policies, and procedures translate to adhere to the needs of employees in different countries?
  • Do you have a small HR department in place that may need help implementing payroll, benefits, training, and development?
Time is money. Outsourcing HR saves time, letting you focus on what matters.

What to expect with Europe HR Solutions

By outsourcing your HR, you may find it’s easier to take care of your daily operations and to strategize and prepare for the launch of your small business in Europe. Europe HR Solutions has supported countless small, mid, and large-sized businesses in their international HR needs.  

Whether you need our team to manage your HR and implement solutions, or you need us to help guide the HR professionals you have on staff, we can sweat the small stuff to ensure your big picture remains intact. 

You can expect Europe HR Solutions to do the following:

Act as your representatives:

We’ll act as an extension of your small business. This means we will collaborate with you and ensure we’re promoting your vision and standards in any HR matters we handle for you.

Ad hoc requests:

We understand that you may have ad hoc requests. We’re used to fast-paced, high pressure situations, and will ensure your needs are met in a timely manner.

Assist with HR strategies:

We’re committed to providing HR services that help your business grow and succeed. We’ll make certain that the innovative solutions we offer adhere to your overall business and HR strategies.

Create and implement policies and procedures:

We’ll strategize with you to create and implement your company’s policies and procedures and ensure details are in place that will help your employees thrive and create a positive work environment.

Handle employee contract needs:

We’ll help to create and manage your employee hiring processes (including talent acquisition, interviews, and onboarding checklists), employee complaint procedures, performance reviews, and off-boarding processes.

Legal compliance:

Europe HR Solutions will use our thorough knowledge of the various nuances in employment regulations and labor laws to keep your operations, policies, and procedures within legal compliance. This will help reduce your liability risk should issues with employees arise.

Manage employee and management training and development: 

We can cover government-mandated and specific position training programs to support your employees to work with excellence and grow in their positions. This includes compliance training for managers.


We can utilize the latest in talent acquisition trends and industry best practices to make sure you attract the talent you deserve to fill your staffing needs. We want to help you to build the best team possible to create a positive work culture and  a productive team.

The cost of outsourced HR services for small businesses

When to outsource your small business’s HR could be determined by your available budget. The cost of outsourcing your HR may be an upfront expense, but in the long run, it can save you significant money and protect your revenue.

The services offered by Europe HR Solutions can vary in cost, and are dependent on the extent of service you require. We can determine the cost based on the scope of the project.

For example, you may need us to manage a specific, well-defined project that allows us to estimate the cost involved. However, you may require our services on a daily basis, for an extended period of time, or find you need support in an immediate HR emergency. This may mean we will need a retainer payment or charge for an hourly rate.

How to determine your HR outsourcing needs

Before you decide to outsource your HR, it’s vital to determine what type of services you require. It can be overwhelming to discern your needs, but reflecting on and strategizing about specifics can be beneficial.

Answering the following questions may help you to understand what services you require:

  • Do you need an outsourced HR professional who takes the time to know and understand your business, staff, and culture?
  • Do you need HR professionals who are available on a daily basis?
  • Are you in dire need of help with critical talent acquisition?
  • Do you require flexibility and a large scope of HR tasks?
  • Are your needs limited to legal compliance and knowledge?
  • Do you need help developing your workplace culture?
  • Do you need to overcome language barriers?
  • What are your long-term HR needs?

Other benefits of outsourcing your HR

Once you’ve determined when to outsource HR for your small business, you may find that it allows you to streamline your operations and focus on your overall business strategy.

This strategic move reduces your administrative burdens of managing payroll, benefits, and other HR tasks in-house. The cost-effectiveness of outsourcing becomes evident as it eliminates the need for investing in HR infrastructure and ongoing training. 

This newfound flexibility can enable your small business to adapt quickly to market changes and allocate resources more efficiently. Ultimately, an outsourced HR team becomes a strategic partner, and empowers you to prioritize your employees, enhance organizational efficiency, and thrive in the competitive European business landscape.

Contact Europe HR Solutions

Europe HR Solutions understands how crucial HR is to the foundation of any successful business. We can consult with you to determine when it’s best to outsource HR for your small business, and customize innovative solutions with you. 

Your HR needs remain our greatest priority, and we want to support you in ways that promote legal compliance and allow you to see your small business dreams come to fruition. 

Connect with Europe HR Solutions today for a free consultation and be sure to check out our blog for the latest HR insights, tips, and trends. The road to success for your small business is just an HR step away.

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    Inez Vermeulen

    Inez Vermeulen

    Inez Vermeulen is the Founder and CEO of Europe HR Solutions, with over 25 years of successful corporate and entrepreneurial experience in various global industries. She has helped grow and expand the European divisions of global companies such as Coca-Cola Company, Regus, DHL, American Medical Systems, etc. Inez has received several company awards for her entrepreneurial spirit and success.

    She owns a Bachelor’s degree in French, History and Latin, several HR global expert certifications, a Master’s degree in Metaphysical Sciences, ICF Coach Certification and has completed her Doctorate on Transformational Leadership. Inez is fluent in Dutch, English, French, Italian and German. She works in partnership with an extensive international network of independent & professional companies and resides in Belgium near Brussels with her husband Jan.