According to a recent study by the Society for Human Resource Management, six out of 10 organizations outsource at least some of their HR functions, including background checks, employee assistance programs, administration of flexible spending accounts, healthcare benefits administration, and employee recruitment and staffing.

"Companies of various sizes often outsource HR functions so that they can focus more closely on their core business: and their bottom line," says Tom Guerra, CBIA's director of products and services. "However, outsourcing also has its challenges."

The Downside of Outsourcing

The biggest drawback, says Phillip Montgomery, CBIA's director of compensation and benefits, is the strain outsourcing can place on employee relations.

Typically, an internal HR manager keeps senior staff informed of personal and professional issues that may be affecting an employee's work.

When certain HR functions are outsourced, however, the HR manager has less direct contact with employees, and his or her role as an employee-manager liaison is diminished.

"As a result," says Montgomery, "HR managers may be unable to keep senior staff informed, and their ability to motivate and engage employees may suffer. You can't overstate the importance of the personal connection."

More than half (54%) of HR professionals responding to the SHRM study cite the need to maintain face-to-face contact with employees as the reason for not outsourcing.

How CBIA's HR Toolkit Can Help

"All of the discounted products and services in our HR Toolkit can reduce the need for outsourcing and make your HR department a strategic asset to your company," says Montgomery. "For example, they can streamline the hiring process by helping you identify the most highly qualified candidate at a salary that's in line with your internal compensation structure."

CBIA's HR Toolkit addresses the following HR functions:

  • Recruiting: CBIA's partnership with offers members a 20% discount on job posting and resume searching services.



  • Identifying qualified applicants: Background screening firm Baker St. Associates offers discounts on pre-employment screening to help CBIA members eliminate risky candidates.



  • Managing personnel: CBIA members can call our HR hotline (860.244.1900) for help solving myriad employee-relations problems. Our HR experts have extensive experience in labor and employment issues.



  • Communicating the value of employee benefits: Most employees overlook or underestimate how much their benefits are worth. Help your employees understand the value of working for your company with discounted personalized benefits statements from BeneCom Associates.



  • Staying in compliance: CBIA's compliance posters, employee handbook software, and other resources help you comply with the law and manage employee relations at reduced member prices.

For more information about CBIA's discounted products and services, email or call Tom Guerra (860.244.1160).