Posted By:

Trish Barnes on March 20, 2014

3 Reasons Your Employees Will Love HRO

Human Resource Outsourcing (HRO) is a strategy that’s perfect for many small to mid-sized businesses—and makes the lives of employees much easier. It also saves money and provides access to high-end technology. According to Inc.com, “the outsourced HR industry has grown to an estimated $165 billion annually, as nearly 85 percent of firms now outsource at least some of their HR functions.”


HR Outsourcing

Allocating HR duties to a professional company guarantees that your business meets compliance requirements. This helps to minimize risks from legal complications and makes it more efficient. Here are three reasons why your employees will love HRO.


1) Freedom to Focus on Their Duties

Unless you have employees who are solely dedicated to handling HR responsibilities, individuals may end up covering certain administrative tasks. Often, they may lack the knowledge and experience to adequately complete these tasks. This can be particularly problematic for smaller businesses with already limited manpower.

It can also be a distraction for team members working on more important duties, and can be a detriment to productivity. Outsourcing human resources is a great solution because HR tasks are left in the hands of qualified professionals. That frees up your employees so they can spend less time doing paperwork and focus on being more effective at their jobs.


2) Employee Development

Some common services offered by HRO companies are: going through new hire procedures, employee planning, and providing routine performance evaluations. As a result, you can expect to get the most from your employees and they can be equipped with the tools to perform their duties at a high level. Team members will be challenged and may develop skills that they never even knew they had.


3) More Benefits

Offering some key benefits can help your business attract and retain A-list talent. Typical benefits include health, life, dental, disability and supplemental plans. There may also be 401(k) and investment plans, which many employees will appreciate.

Perhaps a less obvious advantage is the team chemistry that can develop. By lowering your turnover rate, employees will spend more time, on average, working for your company. Team members can develop more rapport and get accustomed with one another’s working style. Over time, this chemistry can create an excellent company culture— one where your business is in a position to thrive.

With all these perks, it’s easy to see why employees are on board with HRO. Besides streamlining their daily tasks, you can offer advantages that many of your competitors can’t. All the while, you’re simplifying operations and protecting your company’s assets.

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