Human resources is an essential aspect of any business. But do you need to have an in-house HR department? It may surprise you to learn the benefits of outsourcing HR functions for your company. Here's a list of the top 5 reasons outsourcing HR could benefit not only your business but your employees as well.
1. Save Money
The first reason for outsourcing HR functions is that you'll save a bundle. Without in-house HR, you don't have salaries to pay. On average, an HR representative makes nearly $60,000 a year, plus benefits.
Employ an entire HR team and you're looking at major costs.
Outsourcing those positions to a PEO (professional employer organization) could potentially save you hundreds of thousands of dollars every year. You'll also be saving on costs for benefits, hiring, training, non-compliance fees, and more.
2. Improve Hiring
Speaking of hiring, when you have a PEO taking care of your HR, you know you've got dedicated professionals looking for your next employee.
Don't fall into the category of other small businesses who lose out on talent because they can't compete with other companies offering better benefits.
With a PEO, you can streamline your hiring and attract the best talent. You also have more leeway to offer attractive benefits to more desirable potential employees.
3. Get Expert HR Functioning
There's an old saying, "You can't ride two horses with one a**." Vulgar, but true. If you're busy managing other aspects of your business and trying to manage HR functions, odds are you're not doing either one that well.
Outsourcing your HR functions enable you to have true experts, focused on only HR.
When your business has a clear, streamlined hiring and training process (that only a PEO can provide), employees are more likely to assimilate smoothly. You enjoy greater employee satisfaction.
You can also avoid costly legal errors by having HR professionals handling your payroll, paperwork, hiring, and training.
4. Ensure Your Business is Legally Compliant
One of the main functions of an HR team is to make sure your business is legally compliant. Without a professional helping you, you may not be aware of all the state and federal laws regulating employee hiring and maintenance.
Harassment claims, termination, and discipline of employees all need to fall within legal limits. Your PEO will be in-the-know of all current and updated laws regarding these and many other issues.
If your business is non-compliant with one or more HR regulations, you could be in serious financial and legal trouble. Outsourcing HR to professionals is a great safety measure.
5. Offer Better Employee Benefits
Sometimes small businesses are unable to offer great employee benefits because they're dealing with the complexities of things like retirement plans, health insurance plans, employee assistance programs, and more.
When you have outsourced HR, you have more expert help to manage these complex benefits. Your business is more able to provide quality help and benefits if you have a PEO that's aware of all the potential options available.
Outsourcing HR Functions Today
Outsourcing HR functions and using a PEO can be a great boon to your business no matter it's size. The benefits are many and the costs are minimal compared to employing an in-house HR department. Visit our HR section to learn more about outsourcing human services duties to save your company major money.
