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What is Human Resource outsourcing ?

April 27, 2020

By definition Human Resource outsourcing is the transfer or sub-contracting of the human resource function to an external provider.  The outsourcing of the human resource management function can take many forms and HR outsourcing means different things to different organisations and people, as a result the delivery of HR outsourcing services incorporates a very broad offering.  

For some businesses HR outsourcing just includes the outsourcing of discrete functions, such as the payroll function and ensuring the company complies with all mandatory payroll issues.   For others it is having the option to get an ad-hoc HR support which might include standard templates, award advice, industrial relations advice or advice on how to terminate the employment of staff.   Yet other businesses might decide to outsource the recruitment function, the training / development function or involve a consultant to provide high level support to the management team on HR matters.   It is also possible to outsource the entire HR management function, whereby a 3rd party works with management to oversee the entire HR function.

The usual drivers which lead companies to outsource parts or all of the HR function include cost reduction, compliance, risk mitigation, increasing efficiency / productivity, increased flexibility or even increased professional knowledge / capacity.  For larger companies it maybe the value of outsourcing a discrete administrative function to reduce costs, and allow their internal HR to look after strategic matters.  While for smaller businesses it could be to take some of the pressure off the management team and deliver a professional experience to the work force.   A company’s HR management needs will change as the company develops and the usually require more sophisticated HR management as they grows.  For smaller businesses this is often challenge, and this is where HR outsourcing offers substantial benefit.

E.L Blue’s outsourcing offering embeds an HR professional and establishes HR programs within the business according to the company’s needs.  With a professional team of subject matter experts, the embedded HR manager can draw on the teams expertise to develop a variety of HR programs that can be implemented.  By offering a bespoke program, the company is able to develop various HR management capabilities in accordance to its needs, instead of implementing a one-size fits all range of activities. 


E.L Blue’s various areas of expertise mean that we save money and it’s convenient

Over the years we have developed a great relationship with E.L Blue. Their various areas of expertise mean that we save money and it’s convenient. Our dedicated E.L Blue HR manager knows our business inside out and delivers projects which are catered to our needs of the business. Would highly recommend E.L Blue for a more cost-effective solution to your HR needs.

Electrical Manufacturing

E.L Blue has always provided us a strong return on investment

E.L Blue has always provided us with a strong return on investment and their Payroll Team are the best I’ve worked with to date. They look after all payroll matters and are always on top of any legislative changes which allows me to work on other priorities. I can always rely on the E.L Blue team to deliver on time and accurately.

Senior Manager
Electrical Manufacturing

E.L Blue has been a cost-effective partner

E.L Blue has been a cost-effective partner who has helped us grow our business through recruitment, HR advice and practical policies and procedures. It also helps that the team are very pragmatic and are very open when I just want to discuss potential staff related ideas.


E.L Blue provides us with tangible and direct contribution to our bottom line

E.L Blue manages our employee relations and Human Resources across a number of countries which has a vastly different employment rules and legislation. This results in tangible or direct contribution to our bottom line. We are now experiencing exceptional sales and double digit profit growth.

Former Managing Director

E.L Blue gives me accurate and effective guidance

As a small business owner, I really don’t have any time to make sure I’m up to date with complex employment legislation. Working with E.L Blue allows me to get accurate and effective guidance over the phone when I need it most. It really does give me peace of mind knowing I can ring a team with that amount of experience at any time.

Managing Director
Luxury Fashion

E.L Blue handles all of our Human Resources functions

Since about 2008, we engaged with E.L Blue to handle all of our Human Resources functions and in fact all of our day-to-day administration in relation to all of our employees’ issues and matters. It was only recently we reviewed E.L Blue performance and I must say we believe we have made the right decision

Managing Director

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