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Total HR Outsourcing vs. Selective HR Outsourcing: Making HR Decisions Simple

Oct 24, 2023 / HR

Total HR Outsourcing

Consider yourself the company owner, and you must make a critical choice regarding handling your Human Resources (HR) obligations. Every organisation needs human resources (HR) because they handle all matters relating to the employees. But there are two main ways to handle HR tasks: Total HR Outsourcing and Selective HR Outsourcing. What’s the difference, and which one is right for your business? Let’s break it down in simple terms.

Total HR Outsourcing

When a company chooses Total HR Outsourcing, they hand over all their HR tasks to an external company. This company takes care of everything HR-related, from payroll and benefits to hiring, training, and making sure the business follows all the laws and rules.

Benefits of Total HR Outsourcing

Experienced HR Experts: Imagine having a team of HR experts who’ve dealt with various HR challenges. That’s what you get with Total HR Outsourcing. These experts can guide you through HR smoothly.

Saving Money: Running an HR department in-house can be expensive. You need to buy and maintain special HR software and equipment. But with Total HR Outsourcing, you can save money on these costs.

Focus on What You Do Best: When outsourcing HR, you can put more effort into your core business operations. You won’t have to worry about HR tasks, letting you concentrate on your company’s success.

Smooth Growth: Total HR Outsourcing can easily adapt to your needs without causing disruptions as your business grows. It’s like having a flexible HR team always ready.

Selective HR Outsourcing

Now, let’s talk about Selective HR Outsourcing. This is when a company only outsources some of its HR tasks while keeping others in-house. For example, they might outsource payroll or benefits management but handle hiring and training internally.

Benefits of Selective HR Outsourcing

Flexibility: Selective HR Outsourcing allows you to choose which HR tasks you want to outsource and which ones you want to control in-house. It’s like having a menu where you pick what you need.

Cost Control: You can allocate your resources and budget precisely to the outsourced tasks. This means you have more control over how much you spend on HR.

Focus on Your Strengths: By outsourcing specific HR functions, you can focus on what your company does best without getting bogged down by HR tasks.

Expertise: The external HR service providers are experts in their tasks. You can benefit from their specialized knowledge to manage those tasks efficiently.

Efficiency: Selective HR Outsourcing often involves advanced technology and streamlined processes, improving efficiency and accuracy in the outsourced functions.


Here comes the big question: Total HR Outsourcing or Selective HR Outsourcing? The answer depends on what your business needs.

Total HR Outsourcing might be your cup of tea if you want a one-stop solution with HR experts taking care of everything and some cost savings. But if you prefer flexibility, cost control, and staying true to your core strengths, Selective HR Outsourcing could be the way to go.

Today, tons of HR systems are available to help manage HR tasks effectively. These systems can handle payroll, analytics, and finding new employees. When picking an HR management system, look at how easily it can grow with your business, how user-friendly it is, whether it follows the rules, and how good its customer support is.

Ultimately, whether you choose Total HR Outsourcing or Selective HR Outsourcing, the goal is to support your business in reaching its goals. HR is about ensuring your people are happy, and picking the right outsourcing strategy can help you do that. So, go ahead and make the best choice for your business – you’ve got this!

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