The Top 7 HR Outsourcing Trends to Look Out for in 2022

HR outsourcing will continue to grow and develop in the future, which means there are many HR outsourcing trends you should be aware of and prepared for. In this article, we’ll explore seven of the top HR outsourcing trends that will likely impact your business over the next several years.

Keep reading to learn more about how you can best prepare for these trends as well as how you can apply them to your own business in order to save money, make your employees happier, and improve your overall HR processes.

1) Talent Acquisition

Talented employees are hard to find. Companies must continually search for skilled and educated talent, even after hiring and onboarding new employees. In order to have a strong team that has consistently over time, some companies decide that it would be beneficial if someone else handled finding potential candidates. That’s where HR outsourcing companies in India come into play.

If you’re looking into outsourcing your HR department or want more information about what it entails, keep reading below!

2) Performance Management and Feedback

With many companies moving away from annual performance review comments and moving towards continuous feedback, it’s important that we stay on top of how to give effective feedback. One common trend is around giving honest and fair feedback at least once a month, with quarterly check-ins on progress towards goals. Having these meetings will help motivate employees by helping them stay on track with reaching their career milestones.

There are also more strategies you can implement if you want to learn more about improving your employee’s engagement. Bottom line: It’s time to break out of the annual review rut!

3) Recruitment Process Outsourcing (RPO)

This describes all of your activities related to sourcing, screening and identifying candidates and then bringing them into your company. It’s possible that a company could outsource only one or two of these three steps.

RPO involves a different set of considerations than any other type of outsourcing, since you can’t outsource recruitment until you have identified positions that are currently being filled by internal employees. If you outsource too early, you may create holes in your organization—and miss opportunities to see if certain existing employees might be better suited for other roles within your company.

4) Employee Onboarding

A successful onboarding strategy will save you hundreds of hours of wasted time and money. According to a recent study, 43% of new hires leave their job within 18 months, resulting in almost $5k lost per hire. The costs are even higher when factoring in training, recruiting and missed work time. Luckily, it doesn’t have to be that way.

A well-designed onboarding process can shorten your time-to-productivity by 50%, meaning you’ll not only get more from your new employees but also save thousands along the way.

hr outsourcing firms in India

5) Employee Surveys

According to a recent survey by Gallup, 43% of employees were disengaged at work and 58% were not engaged. That’s nearly half of all employees. So, as employers increasingly turn towards outsourcing options as a viable way to reduce costs and stay competitive, it’s important they keep their employees in mind while making decisions.

If you’re looking into hiring a firm to help with your company’s Human Resources needs (or even if you have a full-time HR team), survey your employees regularly about their satisfaction with their job. This will give your vendor an accurate look at what your needs are and what type of service you expect them to provide.

6) Compensation Administration

The recruitment and management of employee compensation is a complex topic. Developing, managing, and fine-tuning employee compensation plans (along with employee performance reviews) can be a headache, but it’s also something that companies must do in order to attract and retain top talent.

The best employers pay close attention to their salary structure so that they can keep employees happy—and compensate them fairly based on their performance levels. To learn more about how employer’s administrative costs are trending downward, follow these seven trends below

7) Benefits Administration

Software can help a human resources (HR) manager streamline their benefits administration process. Time-tracking software and apps make it easy to gather time information, while employee attendance tracking and time clock systems can ensure that all employees are logging their hours correctly.

Remote access software allows employees and supervisors alike access to important files, even when they’re not on site—eliminating the need for paper records entirely. If a large part of your HR tasks involve managing other people’s paperwork, you should strongly consider using some form of technology to automate or streamline these processes.

8) Payroll

Year after year, studies continue to prove that payroll is one of employers’ biggest headaches. And while many companies are turning toward managed services and other outsourcing options, it can be difficult to find payroll management companies in India who understand your specific needs. It’s not always easy finding a partner that can help you handle payroll as well as all of your other responsibilities — but there are things you can do when evaluating candidates.

9) Global Payroll

The war for talent is more fierce than ever, which means most organizations are turning to hiring outsourcing services. In fact, a recent study revealed that 30% of small businesses don’t even have an internal HR department. Instead, these companies rely on specialists from third-party vendors who take care of recruitment and payroll management duties. However, choosing an outsourcing service can be tricky—because there are so many options out there, it’s important to do your research before making a commitment.


HR outsourcing is big business. In 2017, total revenue from global HR outsourcing reached an estimated $10 billion and by 2022, that number is expected to climb up to $16 billion. The industry has become so popular with businesses of all sizes because it not only frees up internal resources but it can also be much more cost-effective than hiring an employee full-time.

With these seven key trends poised to shape our future, many businesses will likely turn even more frequently to outsourced services. By looking ahead now, you’ll ensure that your organization capitalizes on these trends and is able to continue delivering top-notch services regardless of how our world changes over time. And that means a better bottom line!

Also read: The Work Procedure of Virtual Offices

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