A Case for Outsourcing HR
Outsourcing HR can take two forms. It can be a total outsource of every HR function within an organization or certain HR functions can be outsourced while some remain in-house. Recently smaller companies are moving to a full outsourced HR function or a Professional Employer Organization arrangement. With this model, a third party is performing all administrative HR functions such as payroll and benefits administration as well as onboarding of new employees. This can be done either on the client’s business site or remotely from another location.
Other companies perform some HR functions in house and outsource others. Most companies are not aware that traditional HR generalist functions such as recruiting FMLA administration or employee training can be outsourced and performed by a HR professional that is not on their payroll. Whichever model you choose, whether it’s outsourcing the entire HR function or only portions thereof, the reasons to do so are the same.
First, it saves you money. An experienced Human Resources can command wages of up to $80,000 per year. Once you add benefits that number will be even higher. If you hire a third party like Worksite PAY to handle your HR needs, it can save you a lot of money compared to what you would spend if you kept HR all in house.
Second, it saves you a lot of time by outsourcing these needs. If any of you have ever had any HR responsibilities you will agree that they are very time consuming. Payroll alone can consume hours of time each pay period. The same is true if you are a growing organization or one with a lot of turn over which will necessitate spending a lot of time recruiting and onboarding employees. This HR function has become increasingly laborious as work arrangements and schedules have become increasingly diverse. Contract workers, remote employees and flex-time working create complexity for your payroll/accounting staff. By outsourcing this type of work you can focus on the core operations of your company and act more strategic.
COMPLIANCE AND RISK
The last and probably one of the biggest reasons to outsource HR is to reduce risk by staying in compliance with the employment laws that apply to your business. The laws and regulations that effect businesses today continue to increase in number and complexity which makes staying in compliance challenging. Worksite PAY has partnered with ThinkHR to offer a staff of experienced HR consultants who keep apprised of changes in HR law and are prepared to promptly answer your HR questions and concerns.
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