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Top Reasons To Outsource Your HR

Posted by: on April 5, 2017 in Human Resources PEO

Have too much on your plate? No one runs your business better than you, so focus on that. Say goodbye to administrative burdens and say hello to cost-effect HR management with a PEO. A PEO or Professional Employers Organization is a much easier and more effective way of managing virtually every facet of Human Resources. Even businesses that are currently outsourcing one or two HR functions, such as payroll, through a conventional outsourcer have a lot to gain by consolidating other HR administrative functions with a PEO. Hand off the Headaches of Payroll, HR, and compliance to a PEO and focus on growing your business! Advantages of Businesses that use a Professional Employer Organization The Society for Human Resource management (SHRM) conducted a survey of hundreds of companies about their outsourcing habits and here’s what they found are the six most common reasons that companies outsource:
  1. 26% of companies outsource to save money – this isn't terribly surprising
  2. 23% of companies outsource to focus on strategy – spreading yourself too thin with all of the administrative tasks doesn't leave a lot of time for planning, so this makes sense.
  3. 22% of companies outsource to improve compliance – it is increasingly challenging to stay in compliance and increasingly risky to not meet requirements so outsourcing this risk is beyond smart
  4. 18% of companies outsource to improve accuracy – if you've got too much on your plate (and who doesn't?) accuracy may fall by the wayside, so this also makes sense.
  5. 18% of companies outsource due to a lack of experience in-house – knowing your weaknesses is as important as knowing your strengths, so handing off a task you know you can’t handle properly to someone with expertise is a great business decision.
  6. 18% of companies outsource to take advantage of technological advances – with big data worth tapping into, but costly technology needed to really delve into strategic analytics, outsourcing can offer solutions without a significant investment.
Business who outsource their HR are also:
  • 50% less likely to go out of business
  • 7-9%faster growth
  • 10-14% lower employee turnover
  Emplicity understands that HR Outsourcing should be simple and meaningful. As a Professional Employer Organization (PEO), we strive to be a great partner in supporting your business. If you would like to request more information on how we can assist your needs, please reach out to us at 877-476-2339. We are located in California – Orange County, Los Angeles, and the greater Sacramento and San Francisco area. 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 their clients.