Nonprofits outsourcing human resources to cut costs

Nonprofits are joining a growing list of companies looking to cut costs without compromising productivity by outsourcing human resources, the Hawaii Business magazine reports. Aloha United Way and the Kalihi-Palama Health Center have both made the transition to external accounting and HR professionals.

"Outsourcing has always been a good idea for nonprofits, but the economy has forced them to look at more options,"  Ben Ancheta, strategic accounts officer at ProService Hawaii, told the source. "Nonprofits have looked for ways not just to save money, but to focus their best people on generating revenue."

In fact, this can be a strategic move for a wide range of businesses, given that many companies are currently re-working their operations to reflect a post-recession market, according to the Denver Business Journal. Characterized by staffing shortages and tight budgets, many enterprises are looking to stretch their dollars as far as possible without eliciting drawbacks in services or capabilities.

Outsourcing has also changed in the past few years, as it means less often that companies hiring international employees to perform cheap labor, the source adds. Now, many outsourced jobs remain the United States at an off-site location from which benefits are administered and payroll processing occurs.