Anyone who has ever run a business or tried to manage people knows that the function of human resources is an invaluable element of an organization. Qualified, competent human resources professionals provide services that helps keep businesses and business leaders compliant with labor laws; handle recruitment, screening, hiring, and firing tasks; manage the payroll and benefits for the employees of the business; handles all necessary record keeping on employees; takes care of onboarding and training; makes sure that employee performance reviews are conducted; and so much more.

The HR department is essentially the backbone of the business that makes it easier for businesses to perform at its best and improve its bottom line. But that doesn’t mean that the HR department has to be an in-house function.

Taking HR Outside

Most companies that outsource human resources functions do so because they see the value in having a group of professionals handle everything from hiring and onboarding employees to managing benefits, developing training.

programs and overseeing compliance with employment rules and regulations. Of course, outsourcing HR might not be right for all businesses, there are some significant advantages to doing so, especially when it comes to saving time and money.

Outsourcing your human resources provides at least four major benefits:

1. Risk Management–It is quite a challenge for in-house HR folks to stay current on all the ever-changing employment laws. They are typically busy with the day-to-day tasks of dousing out fires that they barely have time to check in on the current HR updates. But outsourcing firms employ HR professionals whose purpose is to stay current on federal and state employment laws. This diligence helps to keep you compliant with employment laws and avoid costly lawsuits brought on by employees. HR firms also maintain and audit company policies and practices to ensure your organization and your employees’ best interests are protected.

2. Saves Money— Overhead costs associated with in-house HR services are typically very high. A fully-functional HR department requires additional office space as well as highly trained and experienced HR staff. For many small businesses, they simply can’t afford this expense and find that it’s more cost-effective to outsource HR functions. By outsourcing HR, you help reduce your costs and avoid trying to financially maintain nonrevenue-generating back-office expenses. In addition, because HR outsourcing costs are variable, they can be reduced based on the needs of the business.

3. Greater Efficiency–Because most HR specialty firms focus solely on HR, they are more efficient in what they can provide for your business. They typically have access to greater technology tools used for handling the functions of HR than most small businesses. These companies, at least the good ones, send their staff for continual training and they live and breathe HR. They can provide a more efficient HR service because human resources functions is all they do.

4. Health Insurance and Benefits

 

Employers are always looking for ways to incentivize and motivate their staff. Outsourcing provides small employers an opportunity to offer their employees a comprehensive array of employee benefits that are typically available to only the largest corporations. These robust offerings include a wide range of major medical plans and voluntary benefit offerings.

Maintaining an efficient and productive workplace is critical. Outsourcing HR functions creates greater efficiency within human resources systems and helps you and your managers spend less time on paperwork, and often required, but mundane tasks, and more time dedicated to improving the efficiency and effectiveness of your workforce and your business. One good way to utilize outsourcing for your HR needs is to use WorksitePAY’s human capital management (HCM) solution as an extension of your human resources operations. This will allow you and your team to off-load the time consuming tasks of HR, payroll, and benefits administration and focus on managing and growing your business.