How to Outsource Human Resources

Human resources (HR) is an essential part of the functioning of a company. Learning the ins and outs of human resources can be a large task, in addition to hiring individuals to manage an HR department for a company. However, many companies, especially small businesses, outsource their human resources, saving time and money. Outsourcing human resources is a smart business decision, but it can take the pressure off of a business by putting the HR responsibilities into the hands of a company experienced in the field. At Canal HR, we are here to be your HR department. We cover all aspects of HR that any company might need and provide you with more time to focus on your business. Our goal is to alleviate tasks on your end so you can focus on running your business and reaching your goals. Here is how to outsource human resources for your business. 

What is Human Resources

In short, human resources is the department responsible for managing all business functions related to the employees. Human resources is one of the most valuable parts of any company and is necessary to support a successful business’s functioning. The term “human resources” originated in the 1960s when the value of labor relations, motivation, organization, and assessments became more critical to a company. Since then, HR has become an integral part of all companies and organizations. An HR department handles anything from payroll to the employee hiring process and is the department that answers all questions and concerns from employees.

What is Outsourcing

Human resources outsourcing includes a contractual agreement between an employer and an independent HR company. This agreement allows the HR company to manage the HR functions of the employer. There are many areas of a company other than HR that can be outsourced. For small businesses, outsourcing human resources allows them to focus on the growth of their business. Companies can also outsource specific parts of an HR department.

How Outsourcing Can Benefit Your Business

Outsourcing through a human resources company can benefit your business in many ways. First, it can save your company money since you will not hire additional HR employees. An HR company is equipped with everything your company needs and will not require additional fees for HR personnel. Outsourcing HR will also save your company valuable time. You will not need to spend time resolving issues or answering HR-related questions from employees. An HR company will handle all problems and questions from employees as they will be the most qualified to do so. Another benefit of outsourcing through an HR company is that your business will save time and money onboarding and training new employees. Hiring and onboarding employees is a vital part of a company and can be time-consuming. An independent HR company will have this area covered. 

In addition to time and money saved, outsourcing HR can support your company in ensuring that it complies with employment laws and regulations, safety in the workplace, and payroll and tax, which can potentially save your company from paying compliance fees well as suffering penalties. Overall, outsourcing your company’s human resources will take administrative tasks off your plate, allowing you more time to focus on your business. As a result, your business goals and your company’s growth will be able to become your primary focus. 

What an HR Company Covers

An independent HR company covers all aspects of a traditional HR company. At Canal HR, we will handle it all. 


We take care of payroll preparation, which can be time-consuming and tedious. We will also ensure all new hire paperwork is filled out and appropriately stored, deliver payroll reports, and deposit employee pay. 


We can also provide your employees with workers’ compensation insurance. Workers’ compensation helps cover medical expenses, lost wages, care, and other components. In addition, Canal HR offers group and individual insurance options. These include medical, life, dental, disability, cancer insurance, etc. 

401(k) Retirement Plans

A 401(k) retirement plan is essential for employees to have. We offer optimal retirement plans to give employees many options, including Roth deductions. 

Savings and Assistance

We offer an employee assistance program that supports employees who may be overcoming personal difficulties, such as emotional and behavioral issues, alcohol and drug dependencies, or struggling with financial planning. We also can help employees save for significant expenses. For example, automatic deductions can be set up for each paycheck that employees can earn interest on. In addition, every March, we allow employees to sign up for our Christmas Club, which enables them to set aside money through paycheck deductions to plan for holiday expenses. 

Hiring Responsibilities

Many tasks come along with hiring new employees. For example, we cover drug testing, physicals, background checks, and checking employee eligibility with I-9 compliance. 

How to Outsource Human Resources

Selecting the right independent HR company can be challenging. Know their background, ask for references, research their credentials, and ask questions. At Canal HR, we are happy to discuss partnering with your company to manage your human resources. We offer all aspects of a traditional HR company’s services. 

Outsourcing your company’s HR will save you time and money while allowing you to focus on running and growing your business. Whether you are a large corporation or a small business, Canal HR wants to help you by alleviating your HR responsibilities. Contact us today to learn more about outsourcing your company’s HR with Canal HR.