Increasing Employee Engagement through HR Outsourcing

Before COVID-19, many companies shied away from HR Outsourcing under the assumption that doing so will hurt their employees' engagement. But the pandemic changed the whole perspective on the workplace. Hybrid and remote work is becoming more in demand and the role of HR had to change drastically. That inspired many businesses regardless of the size to outsource HR tasks. Considering that all of the HR tasks can be outsourced, is this a perfect solution for modern businesses? And how does Outsourcing HR services affect your employee engagement? We are going to talk about all of that in this blog. 


Essential HR tasks are time-consuming, and in today's business world companies need fast solutions. HR Outsourcing services are a perfect way for SMEs to achieve efficiency and productivity. 

Recent research indicates that an engaged workforce achieves 17% higher productivity and 21% greater profitability. Engaged employees work harder, stay longer with the company, and contribute more. The goal every business has is to attract, retain, and maintain top talents. Those employees then become brand ambassadors and they're the best marketing for their business. Thanks to them, the company then becomes an “employer of choice” for other quality candidates.

How do you know whether your employees are engaged when you are using an HR Outsourcing service? 

When working from the office, it was easier to measure one’s engagement and to determine whether the employee is satisfied or not. And when we were all forced to switch to remote work due to the pandemic, the HR department had to think of a new employee engagement strategy. Luckily, technology allows employers to identify and navigate day-to-day operations and their impact.

Once companies realized they can measure employee engagement even when they are not under the same office roof, HR Outsourcing was more embraced. At the same time, it is cost-efficient for the business and the quality can be even better than having everything in-house.

How Are Companies Increasing Employee Engagement through HR Outsourcing?

The biggest challenge for businesses when working remotely was maintaining or creating the company’s culture. This is filtered down from the top and the HR department is playing a crucial role in the process. In an ideal world, the HR department would spend time maintaining an engaged workforce through creative initiatives that fit into the organization’s culture and values. However, when working from the office, HR professionals are too busy handling day-to-day tasks and have no time for this. But when you are outsourcing your HR operations to an experienced provider, your in-house department can focus on nurturing the talent and culture.

The biggest pressure on the HR department currently is to increase the retention rate. And with the great resignation trend, that is quite a task. Having an HR Outsourcing partner will make hiring much easier for your company. According to the current research, 73% of employees that work for Outsourced HR partners recommend their company as a great place to work.

The main takeaway when you have an HR Outsourcing partner is having an in-house HR team that will be focusing on building and nurturing your company's culture. And knowing that salary is no longer the only motivation for employees, but also the other benefits - HR Outsourcing can be a huge advantage that your business will have on the labor market.

In conclusion, when your HR operations are outsourced to the right partner that strengthens your company culture, brings quality HR practices, and streamlines onboarding and training processes, your employee retention rate will increase. 

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About EuroDev

EuroDev was established in 1996 in the Netherlands with a single, defined purpose to help mid-sized North American companies expand their business in Europe. So far, we have partnered up with over 500 companies and helped them define and meet their European business goals. Services provided include Sales Outsourcing, HR Outsourcing, and Digital Marketing. Services provided include Sales OutsourcingHR Outsourcing, and Digital Marketing.

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