All companies must spend time and resources on essential non-revenue producing activities such as taking care of payroll and managing employee benefits.


These HR functions are typically handled with technology solutions and that means tech troubles in this department can cause a nightmare. For many small and medium-sized companies, outsourcing part or all of their HR functions to third-party providers via ‘managed services’ not only allows them to put more focus on revenue-generating activities, it also significantly reduces the potential damage caused by HR tech issues. Outsourcing HR functions also provides access to additional capabilities, specialized HR experience and superior tech support than the company is capable of in-house.

Tech-related benefits of managed services

By leveraging the latest technology, a managed services solution can provide numerous HR benefits to a small or medium-sized business.

First and foremost, a managed services solution can provide access to the latest HR technology at an affordable cost. Expanding businesses may have limited resources to dedicate to HR systems and cutting-edge technology. With managed services handling some HR functions, companies may benefit from better technical systems without having to purchase them. This may help boost productivity and functionality while tamping down operating costs.

Having the newest HR systems in place also helps with compliance. Many small businesses may fight to keep up with compliance issues in their HR department, particularly with the constantly shifting laws regarding hiring, insurance and benefits. The biggest concern is that failure to comply can trigger serious financial repercussions. A managed services solution can help companies stay up to date and act to comply with new laws and regulations.

Some managed services providers also support organizational development by providing employee training functions. Many businesses have libraries of training content and training in-house makes sense when it comes to specific job duties. However, outsourcing makes sense for general instruction such as project management, leadership and safety training. Outsourcing these kinds of training can offer a different approach to content, and technology like eLearning methodologies. In making the decision to outsource, a company can select a qualified training provider with the cutting-edge training tools.

What services might be useful?

The type of the functions carried out by managed services varies greatly and is based on the kind of company, abilities staff members inside the company, company budgets and risk tolerance.

Some businesses do not have an HR department at all. This means a managed services provider handles all functions related to compliance, termination of employees and legal issues – significantly reducing liability for a company. Other companies have an HR team for serious legal issues, but use managed services to handle clerical issues or as a backup support for legal advice on issues regarding employee relations.

The degree of outsourcing your company chooses should be determined carefully and deliberately to effectively leverage this business approach.

Are you looking for new employees?

At Quanta, we regularly work with our client companies and managed services providers to ensure that all staffing arrangements are tailored properly. If your company is currently in need of an experience staffing provider, please contact us today.