It’s been a tumultuous year for businesses both big and small. The COVID-19 pandemic closed many businesses and drastically changed the way others work. As the pandemic finally winds down, beleaguered businesses will need to adapt to meet the needs of a permanently altered workforce. Outsourcing their human resources departments can help many businesses get back on track. Here are just a few of the many ways now is the best time for human resources outsourcing.
Why is now the best time for human resources outsourcing?
1. Outsourcing HR saves businesses money.
Hiring a salaried HR professional can cost a business a lot of money. For small and medium-sized businesses, it can be challenging to afford enough employees to field a good HR department. By outsourcing, businesses get all the benefits of an in-house HR department without the cost of bringing on more employees.
2. Save time by outsourcing.
It’s finally time to get back to business as usual, but routine HR tasks can take up time that business managers could otherwise spend serving the company’s core mission. By outsourcing HR, businesses can keep their employee’s attention on growing the business back to pre-pandemic levels.
3. Save money on benefits.
Health benefits are more important to employees now than ever before. Using a PEO or an HRO pools businesses together to give them more negotiating power with insurance companies. Outsourcing HR can get your employees better benefits for a lower price and help attract and hold onto top talent.
4. Stay in compliance.
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. By outsourcing these tasks to a professional, businesses can reduce their liability and avoid costly mistakes.
5. Build up your team.
Following the pandemic, many businesses are starting to hire again. HR outsourcing firms stay on top of recruiting trends and know the best way to attract great employees to your company. A PEO can also help businesses create a training program for new hires and plan incentives to keep employees engaged.
6. Help your business grow.
HR outsourcing firms give your business access to all kinds of tools to help grow your business. A PEO or HRO can help your company measure growth, encourage employee success, and stay in compliance.
4 Indicators That the Time is Right for HR Outsourcing
1. Number of Employees
Whether a company has 10 or 100 employees, an employer’s focus should be on the employees and their responsibilities to the business, not distributing the employees’ paycheck every two weeks. As the number of employees increases, so do various compliance requirements, in addition to employee benefits plans, training needs, and people management. HR outsourcing can coordinate and manage these processes, keeping you in compliance and free to focus on growing your business.
2. Better Benefits
Along with a growing number of employees comes the need for a better benefits pool for those employees. Especially for smaller businesses, healthcare benefits costs for employees can be high. HR outsourcing can open the door to a full-service employee benefits broker that can provide your company access to the most competitive benefits package rates available.
3. Cost and Efficiency
As the number of employees and the need for better benefits increases, so does an employer’s business costs and demand for time and attention to all these things. HR outsourcing organizations can pick up the moving pieces of HR-related tasks to keep everything moving on time and within budget, providing employers a more efficient, cost-effective approach to running a business.
In all the above categories, it is essential for employers to maintain compliance with everything from employee classification to taxes to timekeeping. HR outsourcing will ensure that your business is abiding by regulations and statutes, as well as keeping you up to speed on important regulation changes and updates.
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!