9 Reasons You Should Outsource Your HR

HR Conference Room Image

Although many professionals view outsourcing as innately negative, some instances of outsourcing can benefit your business. Outsourcing your human resources-related duties can prove one of the most important changes any company can make. With that in mind, here is a list of reasons you should outsource your HR.

1. Boost Employee Morale/ Reduce Turnover Rates

Outsourcing your HR can make for happier employees. That is because outsourcing your HR can give your employees amazing fringe benefits. Your employees have the comfort of knowing they are working for a company that cares enough about its employees to ensure that HR-related issues are handled appropriately and not sidelined in favor of other priorities. Over time, this not only helps to boost employee morale but can also reduce turnover rates.

2. Cost-Effective

Another major benefit of outsourcing your HR is that it is cost effective. This is because outsourcing your HR allows companies to focus on the core of their business while also trimming costs. In fact, most companies save around 20-30 percent when compared to the costs of having an in-house HR team. This allows companies, and especially small businesses, to offer more competitive wages, train employees in other areas, invest in new technology, and more.

3. Improve Regulatory Compliance

Outsourcing your HR can also help improve regulatory compliance. Given that all companies are required to comply with various rules and regulations, outsourcing your HR can be a great method of ensuring that you remain in compliance with these regulations at all times. This is because a qualified outsourced company will always go above and beyond to ensure that they are staying abreast of all new rules and regulations. Therefore, outsourcing your HR will allow you to avoid hefty fines and other penalties, by having your HR managed and watched over by seasoned professionals.

4. Streamlining Certain HR-Related Tasks

An HR firm can also help you by handling a wide variety of HR-related tasks. As many small business owners know, many HR-related tasks can be tedious and time-consuming. By hiring a firm to handle these tasks you can rest assured that they are handled quickly and efficiently. That includes such tasks as:

  • Employee background checks
  • Providing employee assistance and counseling services
  • Offering flexible spending account administration
  • COBRA administration
  • Managing workers’ compensation claims
  • Administration of health care benefits
  • Retirement benefits administration
  • Processing of payroll

5. Limit Legal Risks

One major benefit of outsourcing your HR is that it can help limit or even eliminate legal risks. Given that the HR department is often the source of various misunderstandings and mishaps, entrusting your HR with a team of HR experts can be an excellent way to prevent such issues. An outsourced HR company can ensure the minimization of exposure to legal risks.

6. Access to Innovative Technology

Yet another benefit of outsourcing your HR is that you will gain access to innovative technology. Unlike having an in-house HR team, outsourcing your HR allows you to work with a team that consistently has the best and most innovative types of HR technology. Therefore, rather than having to train your HR team periodically, you will get the added benefit of working with a team that learns about all the latest HR software and technology.

7. Attract Top-Tier Talent

Working with an HR firm can also allow you to improve your hiring/onboarding process. Given that up to 22 percent of small businesses assert that they have missed out on superior talent because they could not compete with larger companies, outsourcing your HR can be all you need to do to make your company a major contender. Rather than being overlooked, or losing top prospects once the prospect finds out the type of benefits you offer, you will be able to rest assured knowing that you can hire and retain top-tier talent.

8. Focus on Your Core Business

Outsourcing your HR can also allow your company to focus on your core business. Although HR is an intricate part of any business, it should not be a focal point. By outsourcing your HR, your company will be able to focus on consistently improving and driving business. For instance, if you have a medical practice, investing in HR can allow you to focus your resources on improving the patient experience, providing new, cutting-edge procedures, and much more.

9. Offer Premium HR Services

Another reason you should outsource your HR is that it will allow your company to offer more premium HR services and benefits. This is especially the case for smaller businesses or medical practices that may otherwise be restricted in terms of what HR benefits and packages they can offer. Since HR firms can gain access to economies of scale because they are working with a variety of clients, they can provide companies with premium HR benefits and packages that they would not have access to.

Overall, if you are interested in outsourcing your HR can be one of the best moves any small business can make. Rather than being subjected to frequent errors and mistakes at the hands of inexperienced HR employees, working with an HR firm will allow you to focus on what matters most: your day-to-day business. Contact our team of experts, here at America’s Back Office to discuss your options and start creating an optimally efficient company.