News Spotlight

The booming labor market is over. Unemployment rates ticked up to 4.1% last month, signaling that the job market is becoming more balanced — the question is whether it will stay stable or continue to cool (The Wall Street Journal).

AI makes employees less productive. A new survey from Upwork and Workplace Intelligence found that while executives see AI as a productivity boost, workers report that the technology is slowing them down (Inc.).

Workers receive college credit. Walmart and McDonald’s are working with universities to facilitate a new benefit — converting on-the-job skills and training to college credit — bringing higher education within reach for their employees (KVPR).

Stat of the Week

A new analysis reveals that, in 2023, U.S. mothers earned 31% less than fathers ($55,276 vs. $72,280 respectively). Over a 30-year career, that gap adds up to roughly half a million, making it more difficult for mothers to save money, pay off debts, and achieve financial security.

Historically, many mothers have struggled when balancing career and family, especially because women tend to assume household and caregiving responsibilities. The motherhood “penalty” adds to their uphill battle, while many fathers experience a wage bonus over time after they have children, widening the pay gap even further.

Deep Dive Article

3 Ways Outside HR Expertise Can Level Up Your Business

HR leaders are taking on some of the most exciting challenges and opportunities of our time. In the face of rapidly advancing technology, they’re charting the path for employees to learn new skills urgently needed in tomorrow’s world. They’re building the playbook for hybrid work as many companies evolve to better support the needs of their workers. And as demand grows for fair, equitable, and inclusive workplaces, they’re safeguarding DEI&B and combatting the stress and burnout that’s become all too familiar to today’s workers.

As they usher in the workplace of tomorrow, HR leaders are poised to drive transformative change. But this is no small task. The requirements of human capital management are expanding and evolving, and leadership is expected to juggle more than ever before. On top of these strategic developments, HR teams are still expected to manage the day-to-day needs of the workforce, from benefits administration to regulatory compliance, and more.

As a result, companies are increasingly turning to external resources to help manage certain HR functions, like recruitment, payroll management, and onboarding. In recent years, new technology solutions — some powered by AI — have emerged to help with these tasks. Paired with tenured and trusted HR professionals, these solutions can be leveraged by today’s HR teams to help their companies scale and grow.

Effectively outsourcing HR tasks can increase bandwidth for leaders to focus on long-term strategy and for their teams to engage the workforce in important areas, such as learning and development, well-being, and career pathing. Furthermore, outsourcing can help level the playing field for small and mid-sized businesses that might otherwise lack the resources for comprehensive HR management.

By 2027, the HR outsourcing market is expected to grow by $13.6 billion. As more and more leaders turn to external services, they must match up a strong, trusted provider with solid tech to help level up business operations.

​New research from isolved shows that HR leaders are open to the solutions offered by external services. 76% of HR leaders say they could benefit from outsourcing and 54% plan to outsource this year. For those planning to leverage outside expertise, most want support with:

• Talent acquisition
• Core HR and payroll
• Benefits administration
• Employee relations
• Performance management

"By combining the right technology with the support of a trusted HR services provider, organizations can shift their focus towards growth and scale,” shared isolved CMO Celia Fleischaker. “This powerful combination enables the identification of opportunities and the development of strategies that enhance efficiency and productivity, paving the way for sustainable growth and success."

To keep up with the rapidly evolving workplace, HR leaders should consider harnessing the growing array of external resources and expertise. This not only ensures that HR leaders themselves stay ahead, but that their workers stay ahead as well. When companies have efficient and well-managed HR operations, employees are more likely to have what they need to do their jobs, to be productive and present team members, and to thrive at work.

Here are three major benefits that employers see when leveraging external HR expertise:

It can make companies more efficient and responsive by leveraging trusted HR, risk, and compliance experts who can take care of time-consuming, tedious tasks. This can increase bandwidth for HR teams to focus on core business activities and strategies.
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Outsourcing administrative tasks can reduce the amount of time HR teams spend on these processes, but it can also reduce overhead for the business. Hiring full-time HR staff to cover all these tasks can be expensive when salaries, benefits, and office space are factored in. Working with external providers allows companies to pay only for the services they need.

Additionally, external HR providers often use the latest technology and software, which can streamline processes and improve accuracy for important matters like payroll. These firms have established best practices and efficient processes for HR functions, leading to faster and more reliable service delivery. This of course makes HR teams more efficient, but it also means that employees are more confident in HR processes and able to focus on their work.

It can help leaders become more data-driven and strategic with the support of HR service experts who stay up to date on the latest compliance requirements. These experts can also conduct regular reviews to ensure HR teams are getting the most out of their technology investment and meeting specific goals.
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Outsourced HR providers tend to be specialists in their field, offering expertise that might be beyond the reach of a business’s in-house capabilities. This expertise can allow any company — regardless of whether they have a large HR team in place — to stay at the forefront of best practices and offer best-in-class human capital management to their teams.
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These outsourced specialists can also help companies effectively manage regulatory compliance and minimize legal risks. HR firms stay updated with employment laws and regulations, reducing the risk of non-compliance and potential legal issues. Additionally, these firms often help manage risks associated with employment law, wrongful terminations, and workplace disputes, ensuring that companies appropriately and effectively handle any issues that arise.

3. It can allow HR teams to engage employees and improve productivity by focusing on strategic initiatives. HR service experts can provide proactive compliance support, in-depth guidance and coaching to people leaders, comprehensive assessments with recommendations, and more.
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When outsourcing administrative tasks, HR leaders can focus more on their people, including training and development. Outsourced HR services can also provide access to professional development and training programs, which might be too costly for small businesses to develop on their own.
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Efficient HR services lead to better handling of employee concerns, payroll, benefits, and other HR-related issues, contributing to higher employee satisfaction and retention and minimizing stress and burnout.
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Finally, HR management systems can enhance DEI&B initiatives by providing tools for data analysis, bias reduction in recruitment, training, performance management, and compliance tracking. These systems help companies create a more diverse, equitable, and inclusive workplace through objective evaluations, personalized development plans, and transparent reporting.

Find the balance

Every company has unique needs when it comes to human capital management, and strong HR leadership knows best how to leverage outside support. For example, when NLETS — a small, not-for-profit tech company that supports information sharing in law enforcement — lost its long-tenured CHRO following her retirement, the HR Manager who filled her shoes turned to isolved’s HR Services to help with key tasks and to identify areas of improvement. At this small company with just a single HR employee, the support and expertise of an external provider helped not only to fill the gap in a transitional moment but also to level up existing processes.

While outsourcing certain tasks can provide much-needed support for HR teams, companies must continue to invest in internal HR staff and systems that provide the strategic oversight required for the future of work. It’s these teams who know most keenly what their workforce needs, and who can effectively harness external resources and tools in a way that works for their employees.

Thanks for reading — be sure to join the conversation on LinkedIn and let me know your thoughts on this topic!

Quote of the Week

“When you give joy to other people, you get more joy in return. You should give a good thought to the happiness that you can give out.”
​Eleanor Roosevelt