The Biggest Trends in HR Outsourcing

For some, HR compliance can be downright scary. Filing deadlines, consequences and penalties make this topic one that not many HR professionals are fond of. Outsourcing HR compliance can make these responsibilities achievable with the peace of mind that they are being done right. If you’re looking to freshen up your HR outsourcing practices in 2021, be aware of the latest HR outsourcing trends that we’ve taken the time to identify below.

Top Trends in HR Outsourcing for 2021

In 2020, 42% of the U.S. workforce became full-time remote work employees. Most firms state they intend to keep the new work-from-home policies or offer partial telecommute options. This can be a complex headache for smaller HR teams to manage, hence why many are opting to outsource HR to an outside agency to manage.


Before it’s time to hand over the keys to your castle to an HR outsourcing company, it’s critical to understand the top HR outsourcing trends for 2021 and beyond. At a high level, these trends include:

This list might not be groundbreaking to see, but to those who work in HR these are the tasks that are the foundational rock for their department. If these four pillars are not working cohesively at all times, HR professionals will not be able function at their highest level and produce the desired results that CEOs and CFOs are looking to achieve.

Spring Cleaning Your HR Outsourcing Processes

There is no doubt that outsourcing is a reasonable solution for relieving an HR team of necessary, but time-consuming tasks. Whether your company doesn’t have the staff, is short on time, is non-compliant or has limited funds, HR compliance outsourcing may be the answer.

To succeed in the driver’s seat as a growing business in 2021 and beyond requires leading and accelerating digital transformations to sustain business operations in the future. This requires your company to do a little spring cleaning on its HR outsourcing processes to begin prioritizing what will create value for your organization; whether that value is realized or not. To do this, consider following this list of priorities to allow your HR team to flourish:
Notice how these four priorities match exactly with the top four trends for HR outsourcing that were outlined in the previous heading. Following this outline will help you streamline the spring cleaning of your most important HR processes to ensure organizational success. Let’s dive deeper into these four priorities to identify the true value of these four key priorities.

[Benefits Administration] Benefits Audits

Audits are important to employers for several reasons. They can help improve processes that may be out of date. With regards to HR activities, audits are necessary due to the interaction with the public (i.e. potential applicants, current employees or current or potential clients).

Two of the more popular benefits audits are Dependent Eligibility Audits and Claims Audits; both are typically conducted to drive longer-term health plan objectives as well as to receive immediate, short term returns or a one-time recovery of funds. By making use of these periodic audits, businesses can more easily control the rising costs of employee benefits, while protecting the program from purposeful fraud or accidental waste.

[Benefits Administration] Benefits Audits

[Support Systems] Checking In With Recruitment and Marketing Teams

[Payroll] Reviewing Temporary & Seasonal Employees

It’s true that most companies these days either hire temporary and/or seasonal employees to fulfill short-term demand increases. If your company is tremendously seasonal and sees increased demand during the Summer and Winter, Spring is typically the best time to approach reviewing the past calendar year’s temporary and seasonal hires and charting a course of action for the current calendar year.

Seasonal workers who know they’re valued and had a fulfilling experience are more likely to return. To ensure a smooth transition between seasons for any type of temporary employee, it’s key to review their contracts on the cusp of the next season change. Spring is a good time to conduct a performance evaluation for these employees to ensure they know that their hard work is recognized and if you’d like them to come back next year or season.

[Compliance] Reviewing I-9 Forms & Sexual Harassment Training

According to the Immigration Control and Reform Act of 1986, employers may only hire persons legally eligible to work in the United States (including citizens and nationals of the U.S., and aliens authorized to work in the U.S.). The employer must verify the identity and employment eligibility of anyone being hired, which includes completing the Employment Eligibility Verification Form (I-9).


Employers who get audited by the U.S. Immigration and Customs Enforcement (ICE) and show that they are in violation of the I-9 form eligibility requirements can be fined between $2,000 and $10,000 for each violation. Additionally, both state and federal law impose fines and penalties for failing to comply with other worker authorization requirements. This doesn’t need to be your company’s reality though as long as you take the time to review your I-9 forms every Spring.


For California-based companies, HR teams must also focus on following all requirements laid out by Compliance Bill SB 1343 (which overtook AB 1825 in 2018). This bill relates to the configuration of sexual harassment training programs which were covered in this recent Finvisor article. Employers who do not comply with sexual harassment prevention training regulations are putting themselves at risk of a pricey lawsuit.

The Importance of HR Training Enrichment Programs

To foster engagement in your organization takes activities and benefits that employees find to be enriching. Just as a company has a business plan and a marketing strategy, those who succeed at employee engagement are those who have carefully thought out a program to foster employee enrichment. For this plan to work, all levels of management need to be on the same page and working towards the same enrichment goals.

An employee enrichment program should include consistent methods of demonstrating that employees are valued. Even on a startup budget, your company should be able to reward and recognize your employees’ value as both a person and employee. By using an HR outsourcing solution, your internal team can focus on creating transparency and trust within your cohesive company culture which demonstrates a refreshing sense of authenticity to your employees.

Securing Passwords to Maintain Compliance

Being at the center of an HR crisis is an enormous and weighty responsibility for any HR department. Making sure that your HR team never has to experience a data breach crisis is something that you should be putting into practice on a daily basis even if you’re outsourcing your HR compliance to another firm.


With World Password Day on May 5th, 2021, it’s important for HR professionals to review their internal passwords sooner than later. This is because passwords are critical gatekeepers to keeping the digital identities of the candidates that your HR team converses with from falling into the wrong hands. This year, take the World Password Day pledge and put these critical password tips into motion in your organization:

To remove your startup from the risk of legal trouble from a compliance mishap stemming from a data breach, it’s best for companies that have overwhelmed HR departments to delegate some of the most important tasks to a qualified HR outsourcing company.

Returning to Work After COVID-19

The largest hurdle that businesses of all sizes are currently troubleshooting is how to safely return to work after COVID-19. As the world is still currently in the middle of the largest global pandemic of the modern era, business and HR leaders must be wary of opening the floodgates to let employees back into vacant office spaces. To ensure that teams have the ability to collaborate safely and effectively within an in-office environment during these difficult times, it’s essential that leaders focus on making a permanent shift towards a hybrid workforce model.


A hybrid workforce model can accommodate your team’s ability to work more strategically at all times. When employees need to work autonomously to meet deadlines, they can do so without added distractions. If teams need to come together to collaborate, a hybrid workforce model would allow teams to have the flexibility to bring new ideas to the table while developing the social and emotional connections that are vital to forward progress.

*This blog does not constitute solicitation or provision of legal advice and does not establish an attorney-client relationship. This blog should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction.*

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