Are you spending too much time solving human resources (HR) problems? This is just one of the indicators that it may be time to outsource your HR functions to a third-party provider. An increasingly popular option among organizations of all sizes and industries, HR outsourcing can offer your business a number of advantages. Here, we go over some of the most significant you need to know.
What Is HR Outsourcing?
With regard to HR, outsourcing refers to when an organization decides to hand off some or most HR responsibilities to an external organization. While virtually any function can be outsourced, the most common include:
Talent Acquisition & Management: Bringing in (and retaining) the best talent is key to growing your business, and an outsourcing expert can help you develop the right strategy, leverage the best tools, and streamline your processes.
Payroll Processing: Payroll errors can happen easily and cost your business a lot of money in tax penalties or worse, lawsuits. An outsourcing provider has the time and knowledge to perform these services correctly.
Employee Benefits Administration: Keeping up with the paperwork and legal complexities of delivering benefits packages can take serious time and money away from your organization. By trusting a third-party provider, you can get back to what you do best, growing your business.
When Do You Need It?
When you don’t have enough resources
Human resources functions are critical to the success of every business, but smaller-sized companies may not have the resources to carry out HR responsibilities efficiently and according to their needs, priorities, and goals. As a result, their productivity and bottom line suffer. To fill in the gaps, they bring in outside experts that can offer tailored support.
When you need support on a project
When you’re working on a complex project with tight deadlines and you don’t have any additional headcount, you risk overworking your employees and impacting productivity in other areas. Helping to keep your teams happy and motivated, an HR service provider can come in on an as-needed basis to give you an extra hand with large projects and peak work periods.
When you want a fresh approach
HR outsourcing services can do a lot for your business beyond filling in skills gaps. Whether they’re looking to cut costs, enhance compliance, or simply get expert support on their strategic efforts, many businesses choose to hand off their HR tasks when executing these functions in-house isn’t delivering the results they want.
How Does Your Business Benefit? HR Outsourcing Helps You . . .
Save time
HR activities, like payroll, can be tedious and time consuming. Smaller companies in particular may be forced to stretch their staff to cover HR tasks, which takes time away from their core job duties. Bringing in a third-party HR expert lets your employees focus on their key responsibilities.
Stay compliant
From labor laws to tax regulations and everything in between, compliance obligations are complicated and constantly changing, and it’s your responsibility to keep up no matter what. This can be a challenge for businesses without the right legal knowledge or resources. An outsourced team, on the other hand, has the expertise and time required to keep you aligned with all regulations on a daily basis.
Save money
HR outsourcing can help you save directly and indirectly. First, without the need for an internal team, you can reduce your overall labor costs and the costs associated with employee turnover, recruitment, and onboarding. Additionally, when you bring in a third-party expert to take over your HR, you’ll need to spend money, of course, but the time gained and the reduced exposure to legal risk can lead to a better bottom line in the long run.
Gain flexibility
Whether due to time, cost, or labor constraints, many businesses aren’t able to align their HR initiatives to their evolving needs and wishes. An outsourcing partner gives them on-demand access to the HR solutions and knowledge they need to cope with changes while maintaining a predictable budget.
Grow faster
Your people power your growth, so when it does come time to hire, you want the most qualified job candidates. An outsourced HR service provider can focus on sourcing and hiring the right people for your organization, so you know you’re bringing in top talent while focusing on core business operations.
Gain expertise
Compared to years past, HR departments play a much more critical role in the success of your business. This also means your business suffers if HR tasks are managed inefficiently. An HR partner brings the specialized skills needed to effectively and strategically carry out your critical human resources functions.
Your Partner in Talent Acquisition & Management
With the global talent shortage and rapidly-changing skills needs, sourcing, attracting, and retaining top talent is a top challenge businesses face. That’s where we come in. As your end-to-end partner, we can execute on the full lifecycle of human capital with talent acquisition and management solutions tailored to your industry and talent needs. Connect with us today to learn more.
