Outsourcing certain human resources roles can save an organization time and money in many respects. While it is not necessary or often feasible to outsource all human resources roles, outsourcing various functions can help reduce overhead and result in greater efficiency in some organizations. To save money however organizations must decide what human resources roles can be effectively outsourced to save money and not impeded performance or harm the organization. This paper will discuss the benefits of outsourcing certain human resources roles, including payroll, benefits administration and recruitment and selection. By outsourcing each of these roles an organization can reduce overhead, risk and save valuable time when conducting normal business operations. These ideas are explored below. .

             Outsourcing typically reduces the number of human resources staff necessary on hand to handle ordinary HRM activities (Sims, 2002). Outsourcing involves "long term contractual relationships" with businesses and external providers (Lever, 1997:37). Outsourcing relationships are increasingly common in human resources. Outsourcing can provide organizations with multiple competitive advantages, including cost savings. There are many roles that an organization can outsource to save money. Some of the more common roles that organizations are outsourcing to save money include payroll and benefits administration and employee hiring or recruitment (Lever, 1997). By outsourcing these functions an organization can maintain a smaller personnel base and reduce the number of experts needed to manage the human resources function (Lever, 1997). Outsourcing experts can recommend the best methods for conducting payroll and can handle the often lengthy administrative tasks associated with benefits administration.

             By outsourcing the recruitment and selection process an organization can rest assured that well qualified experts will screen candidates, background check candidates, and ensure that the best employees are hired to handle core competencies.