With all of the demands of running a company, handling human resources related tasks can be a burden, especially for small to mid-sized businesses. That’s why many companies are going the HR outsourcing route. In fact, studies have shown that “almost all of the nation’s fastest-growing private companies, 83 percent, are outsourcing HR functions, and plan to continue doing so over at least the next two years.” Here are three ways that HR outsourcing can benefit your business and make your life easier.
1) It Means Better Recruiting
For almost any company to thrive and succeed in the long run, it requires a team of knowledgeable and dedicated employees. The problem with many businesses that lack formal HR departments is that they don’t understand the art and science behind effective recruiting. On the other hand, a human resources outsourcing (HRO) firm knows the ins and outs of recruiting and can ensure that you acquire A+ employees.
Not only will these workers possess the necessary hard skills like specific industry knowledge and educational background, but they will have the right soft skills like work ethic and communication to create an outstanding workplace environment.
2) It Keeps Your Business Compliant
In this day and age, there are a plethora of rules and regulations that govern the workplace. This includes everything from meeting OSHA requirements and maintaining a safe working environment to EEOC laws and preventing discrimination. If you’re unfamiliar with federal and state laws or don’t keep up with relevant changes, it can be a recipe for disaster, and you could wind up with a lawsuit or a host of other headaches.
HR outsourcing is ideal because an HRO will understand the rules and regulations of your industry and take the right precautions to keep your business compliant at all times. This means that you can operate without constantly having to worry about breaking a law, and you’ll have more peace of mind.
3) You Can Better Manage Payroll
Payroll is obviously a key part of business operations. Unfortunately, it’s not always easy to handle payroll processing and keep track of taxes. If you make mistakes, you may find yourself faced with IRS penalties, which can be quite costly. If you make mistakes on employee earnings or fail to pay your workers on time, it can create even more problems.
Going through an HRO is beneficial because they can handle nearly every aspect of payroll processing for you. Whether it’s tracking time and attendance, direct deposit or W-2 preparation, you know you’re in good hands. Everything gets taken care of for you, and you can be assured that payroll is accurate. In many cases, you and your employees will also have access to an online payroll database to check on reporting whenever you need to.
HR outsourcing offers a wide variety of benefits, and these are just a few of many. The bottom line is that it can make your business operate more efficiently and effectively, while still maintaining your desired level of control.