Managing human resources for a company of any size can be a complex task. Rules and regulations regarding employment and labor are constantly changing, and it can be a challenge to keep your HR policies up to date without a dedicated staff member staying on top of local and federal laws. As a business owner, you’re working hard to grow your company, but any unexpected HR issue can severely slow down that momentum.
A full HR department or dedicated HR staff may be too costly for a small to medium size employer to afford, but you can still receive the same services without having to hire additional personnel. Outsourcing your HR operations to a professional employer organization (PEO) can take a lot of a business owner’s plate. Below are the top eight advantages of outsourcing your human resources.
1. Guaranteed depth of knowledge.
An in-house human resource manager is more of a generalist. They know a little about a lot, stretching themselves too thin. More than half of their time is spent on payroll, claims management, benefits and such. There is no focus on developing or training the people within the company. However, with outsourcing, you are guaranteed a team of experts who focus their careers in understanding the human resources realm.
2. Access to expertise and familiarity with government regulations.
Understanding different labor laws and ever changing rules can boggle you down. An HR provider has professionals who are dedicated to knowing every aspect of the human resources landscape. These experts are available when you need them and have the most up-to-date information on how to deal with accident reporting, taxes, compliance processing and more. Why overextend yourself by attempting to keep up with government regulations when you can outsource the task to someone who already knows what they’re doing?
3. Increased efficiency and lower overhead.
By outsourcing HR operations to an outside provider, employers are able to minimize operating costs for in-house space and staff. Outsourcing HR can also increase efficiency by allowing the employer to not only delegate their day-to-day administrative tasks, but to easily manage them through cloud-based HR technology.
4. Easier management of employee on-boarding tasks.
HR technology can also make employee on-boarding more efficient. It’s easy to lose track of files like I-9s and W-4s, but paperless on-boarding keeps the process organized so nothing gets lost in the shuffle. HR outsourcing firms also have the tools needed to create consistent policies and handbooks for current and future employees, so everyone is always on the same page.
5. Large company benefits.
Larger corporations have better access to employee benefits that make them more attractive to employees and prospective employees. Small business owners can access similar large company benefits by outsourcing to a PEO provider that has the ability to negotiate better benefits packages and provide lower insurance costs.
6. Invaluable impartiality.
An HR firm or PEO is a third party service provider that has an unbiased stance when it comes to tackling HR issues. Your HR outsourcing provider makes decisions based on what is in the best interest of your company rather than on any preconceptions. This impartiality is invaluable to a company’s reputation, and can help cultivate a healthier, happier work environment.
7. Minimization of workers’ compensation claims.
Mistakes and accidents happen in any workplace, even more so if the business operates in an industry of higher risk such as manufacturing or construction. Working with a PEO for safety consultation is one of the best approaches to increasing safety in the workplace and significantly minimizing workers’ compensation claims.
8. Continuity of quality services.
Employee turnover is costly enough, but when your HR manager leaves the company it means a whole new process of hiring, training, and understanding the company comes into play. Outsourcing your HR combats this issue because a PEO can build programs tailored to your business and keep your services consistent, even through personnel changes, for as long as you need.
Outsourcing HR operations is a great way for employers to get help navigating the intricacies of human resources while also reducing their employer liabilities. With the expertise of a PEO like Emplicity guiding you along, you can focus on the areas you excel in while our experts take care of compliance, administration, payroll, benefits and more.
Have an HR Question?
If you have any questions about this article or HR Outsourcing & PEO in general, let us know:
Since 1995, Emplicity has provided a smarter, more secure, and integrated platform of employer services to its 300 business clients and their 8,500 employees. As a Professional Employer Organization, or PEO, the California-based HR outsourcing firm simplifies the compliance, administration, and support businesses need in the areas of employee benefits, payroll, and human resources technology.
NOTICE: Emplicity provides HR advice and recommendations. Information provided by Emplicity is not intended as a substitute for employment law counsel. At no time will Emplicity have the authority or right to make decisions on behalf of its clients.