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. 2023 Aug 7;9(8):e19018. doi: 10.1016/j.heliyon.2023.e19018

Table 6.

List of functions frequently outsourced in HRM.

Description Reference
Recruitment, as a function of HR, directly impacts cost efficiency and the firm's performance, suggesting that managers should consider outsourcing recruitment functions. [42,45,52,55]
Not only is payroll processing commonly outsourced, but it is also sometimes performed jointly with other companies, resulting in a positive impact. [21,44,46,52,55]
Coaching and succession planning have a limited positive effect on a firm's performance. [51]
Service organisations struggling with customer satisfaction are expected to outsource technology-linked HR activities, such as resume screening, annual benefits enrollment, etc. [51,59]
Firms in pursuit of obtaining specific skills and capabilities intend to invest heavily in training and development. They may employ external trainers to offer a more extensive range of training and ensure higher quality that aligns with external market conditions. [23,44,46,52,55,56]
It is discouraged to outsource HR planning, as well as compensation and reward systems. [44]
A strategic HR department supports outsourcing its HR functions, specifically HRIS and labor relations. [52,55]
Outsourcing benefits and payroll activities has been a comparatively old practice, but nowadays, HRO is performed as a full-service for organisations, helping them cope with overcapacity and outdated methods to control expenses. [7]