The Great Resignation is causing many executives to worry about attracting and retaining staff. Organizations must remain consistent despite fluctuating staffing levels which can result in a stressful workplace. Executives may find with these demands that they need help with certain tasks, such as managing human resources (HR). Some might also discover that their HR team could use additional assistance. No matter the reason, HR outsourcing firms can help. Here are reasons why some may choose to outsource HR during this time.
1. Outsourcing HR Can Save Money
For small and medium-sized businesses, it can be challenging to afford enough employees to staff a good HR department. By outsourcing, businesses can hire fewer specialists which can save money. As the number of employees and the need for better benefits increases, so does an employer’s business cost and demand for time and attention. HR outsourcing firms can assist with HR-related tasks to keep everything moving on time and within budget, providing employers a more efficient, cost-effective approach to running a business.
2. Save Time
The main advantage of outsourcing HR is that it allows your employees to focus on the long-term goals that are truly important to the company. Routine HR tasks can take up time that business executives could otherwise spend serving the company’s core mission. By outsourcing HR, executives can reduce certain staff member responsibilities as well, giving them time to focus on other things and reducing stress.
Whether a company has 10 or 10,000 employees, the focus should be on the business and clients, rather than distributing the paycheck every two weeks. As the number of employees increases, so do various compliance requirements, benefit plans, training needs, and people management. Instead of focusing on these tasks, outsourcing can give executives more time to focus on their goals. Whether you already have a designated HR employee or not, you’ll have access to a certified and dedicated HR professional who can offer insight when needed and find solutions as problems or issues occur.
3. Save Money on Benefits
Health benefits are more important to employees now than ever before. Outsourcing HR can give employees better benefits for a lower price. Along with a growing number of employees comes the need for a better benefits pool. Especially for smaller businesses, healthcare benefits costs can be high. HR outsourcing can open the door to a full-service employee benefits broker that can provide access to the most competitive benefits package rates available.
4. Stay in Compliance
It is essential for employers to maintain compliance with everything from employee classification to taxes to timekeeping. HR outsourcing will ensure that the business is abiding by regulations and statutes, as well as keep up to speed on important regulation changes and updates. Small business loans and other pandemic legislation have resulted in a complex web of regulations. Failing to keep up with these new laws can create filing errors and result in expensive penalties from the IRS.
5. Help Your Business Grow
Many organizations are looking to hire. HR outsourcing firms stay on top of recruiting trends and know the best way to attract great employees. They can help businesses create a training program for new hires and plan incentives to keep employees engaged. The HRO model allows for executives to look at the bigger picture while the HR partner focuses on the employees. Organizations can also access tools to help measure growth, encourage employee success, and stay in compliance.
Advantages of HR Outsourcing
When it comes to properly running a business, employers are not only expected to keep up with shifting laws and regulations, but they’re also tasked with managing long-term business goals and helping their companies grow. However, effectively juggling these tasks is something that just isn’t feasible for every company, especially with limited to no in-house HR staff members.
In many cases, the best way for a company to manage human resources is through outsourcing it. While outsourcing HR may seem like a counter-intuitive way to improve your organization’s workflow, there are plenty of ways it can improve efficiency in the workplace.
Effortlessly keeping up with HR trends and changing laws are one of the obvious advantages of outsourcing HR, but if you’ve been considering HRO, here are just a few of the many other advantages:
1. HR Outsourcing frees up time.
Whether you already have a designated HR employee or not, you’ll have access to a certified and dedicated HR professional who can offer insight when needed and find solutions as problems or issues occur. The main advantage of outsourcing HR is that it allows your employees to focus on the long-term goals that are truly important to the company.
2. HR Outsourcing puts an expert eye on your HR policies.
With HRO, you’ll receive a comprehensive review of your current HR policies and practices, as well as guidance on what policies and practices need to be revised, updated, and in compliance with federal, state, and local laws.
3. HR Outsourcing is a hassle-free way to update your employee handbook.
An employee handbook is a must and will save you time and energy when it comes to answering policy and procedure questions from your employees. HRO will help you develop and publish your employee handbook, tailored to your business identity and needs. In addition, your handbooks will be updated regularly as laws, policies, or company needs change.
4. HR Outsourcing can improve employee relations and streamline hiring orientation.
Maintaining good employee relations is an important part of any business, yet it can be very time-consuming for business owners and leaders. HRO will be available for your employee relations, as well as being able to offer efficient and professional new hire orientation.
5. HR Outsourcing can provide training and professional development.
Employee training should be done on a regular basis, both for new employees and for current employees who desire to grow personally and professionally. From supervisory training to the avoidance of harassment/discrimination to medical or personal leave to performance management, HRO services will have you covered.
6. HR Outsourcing can handle administration for time-consuming tasks.
Managing unemployment claims, leave, and other basic everyday HR tasks can be time-consuming and stressful if you’re not familiar with the proper forms or legal protocol. HRO services will keep you up to speed on the proper procedures for all types of claims or leave administration, saving you both time and energy to focus back into running your business well.
HR Outsourcing can improve business workflow
1. Employee Focus
An office manager is not the same thing as an HR expert, neither is an accountant nor a bookkeeper. If your company is relying on anyone other than a qualified HR expert for human resource work, then you’re missing out on important expertise, while also pulling certain employees away from what they’re qualified to do. Outsourcing HR to experts gives your accounting, bookkeeping, and office management employees time to focus on the tasks that they are good at.
2. Reallocation of HR Staff to Other Goals
For companies that have HR staff members on the team, managing the day-to-day tasks of payroll and employee services can eat up much of the employee’s or department’s time. By outsourcing some of the more time-consuming HR tasks, companies free up their HR team members to focus on long-term goals and business growth.
3. Elimination of Costly and Time-Consuming Mistakes
Human resources is a complex and ever-changing part of the business world. For overworked HR employees, keeping up with changing regulations can be almost impossible. Additionally, no employer wants to experience errors with taxes or payroll that can result in hefty fines. By outsourcing HR tasks, companies prevent having to fix costly and time-consuming mistakes.
4. Recruitment and Retention of the Best and Most Qualified Talent
Efficiency begets efficiency. Employees who value organization and have good time management skills need access to a knowledgeable and responsive HR staff. Moreover, highly qualified HR employees will help track down the best future employees.
5. Investment in Other Areas of the Business
Very few people go into business because they want to create the world’s best payroll department. HR is not the end all be all of a business; it is a support system that allows the rest of a company to function properly. Through outsourcing HR tasks, businesses can get back to managing their company and growing it.
It’s no secret that all companies have different needs. Providing unique and tailored treatment, LBMC Employment Partners offers customized or combined HR services to meet and exceed your expectations. Our Human Resources Outsourcing (HRO) services provide employers with one single point of contact to coordinate and manage a selection of HR processes with flexibility that best fits your business. Contact us today to learn more!
See what clients are saying:
“It has been great to partner with a team of people that have expertise in various fields of payroll, HR consulting, and benefits. The staff is responsive to our questions and needs and assists us in strategic planning in these areas. Employment Partners has maintained a stable staffing structure so that we have been able to build long-lasting relationships. This not only builds trust but creates an environment of shared history and mutual respect that is so beneficial in any business relationship.”- Jennie Stockard, Brentwood United Methodist Church
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