There are different solutions for human resources activity for companies: A company can choose to have an internal HR department with its own staff or hire an external HR department to do it.
The external HR department does not work directly in-house, but in its own offices. Thus, the entrepreneur saves important resources (premises, software, employees, training, ...). Another advantage is that the employees who previously took care of personnel management internally have time again for the actual core business and thus there is an immediate increase in productivity.