As a business owner or manager, Human Resources has an important role. HR deals with hiring, firing and everything in-between. Some companies manage HR on their own, other hire in house HR teams, while others choose to make a smart decision and outsource their HR needs. While all options are feasible, often outsourcing is your best option. Here are the basics of HR outsourcing and 5 things you should know if you are consider choosing an outsourcing route for your HR needs.
- Outsourcing will free up the time of your employees and management while also being one less thing on your own plate. Many CEO’s start off doing a lot of the HR work themselves. While this is okay when you are new or a startup, it can be extremely difficult to manage as your staff expand, your needs grow and your business takes off. This can leave you juggling way too many things and spreading yourself thin. Hiring an outside company to deal with and manage HR responsibilities like payroll can take a load off, leaving you to focus your attention on matters that require your full attention and your specific expertise.
- HR outsourcing can reduce your business’ operating expenses, meaning you can save a significant amount of money. Hiring in house HR workers can get really costly. Hiring these professionals can be convenient, but is often unnecessary. If you hire HR staff in house, you are responsible for paying their salary, over time, benefits, insurance, vacation time and more. Plus, if something is out sick or on a personal day, you may not have someone available to help with a specific issue or problem. When you hire a company, they ensure that there is always a professional available to help you with your concerns since they will have a larger staff to accommodate your needs. Plus, the outsourced company will pay their staff for hours, salary, benefits and more, meaning it’s one less thing you need to worry about or pay for.
- Using an outsourced HR company helps to limit and reduce your company’s liability while also ensuring and improving compliance. Outsourcing will significantly minimize your company’s risk providing you with security as well as peace of mind. In addition, you can rest easy knowing that your company will always be up to date reading laws and requirements. Laws change annually and even more frequently. Average people and business owners may have a hard time staying up to date on these requirements. When you hire a professional HR company it is their job and their profession to stay in the loop in order to protect you legally and make sure that you are always compliant with federal and state laws.
- You will have access to the best talent in the HR industry. Through their work with various other companies, the group you use to outsource your HR needs will have tons of experience. They will be current with technology, HR organizational needs, and more since they have dealt with those things before. They will be able to provide you with valuable information as well as proven techniques for managing HR responsibilities.
- Finally, outsourcing HR will ensure that everything works more efficiently, streamlining the processes. They will take care of hiring and training, health and benefits administration, recruitment, workers compensation, and great customer service. Your employees will be able to get what they need faster, and better than ever, meaning your business will work better and see improved growth and progress.