Benefits of HR Outsourcing for Small Businesses
If you are a small business that is interested in outsourcing your HR, here is a list of the benefits of doing so:
Cost-Effectiveness
One of the top benefits of HR outsourcing is that it can help you save money. (Schedule a consultation with America’s BackOffice to find out more). This is true for the following reasons:
- Employee Acquisition Costs: One of the top reasons outsourcing your HR is cost effective is it helps you lower employee acquisition costs. Hiring new employees can be costly because you have to finance things such as training, equipment costs, salaries, benefits, and more. Moreover, it takes time and effort to input their information into the system for taxes and other records.
- Payroll Costs: Outsourcing HR can also help small businesses lower their payroll costs. This is because, depending on the number of employees you have, you may be required to hire more HR representatives just to ensure that your payroll is completed properly. This, in turn, inhibits their abilities to contribute to the company in other ways.
Saving Time
Another benefit of outsourcing your HR is that it helps you save time. As mentioned, keeping up with tasks such as onboarding and payroll can eat up quite a lot of valuable time. However, by outsourcing these tasks, you will allow your in-house employees to focus on other more important tasks. Joining a PEO and working with our team of experts here at America’s Back Office can help you accomplish this.
Specialization
Additionally, when you have a small HR team, it can be difficult to allow them to specialize in any given area. For instance, some companies assign one HR representative solely to handle employee conflicts. This can be beneficial because they can form a relationship with associates that ultimately builds trust and makes the employees feel heard and valued. Conversely, when you fail to outsource at least some of your HR duties, your small team will have to juggle a wide variety of tasks on the daily basis.
Best HR Outsourcing for Small Businesses
When it comes to HR outsourcing, you’ve got options. Since no two companies have the same HR needs, you need to consider your own unique circumstances before making this decision. Here is a list of the most commonly outsourced HR duties:
- Payroll: As mentioned, payroll can be quite cumbersome, which makes it one of the most commonly outsourced HR tasks.
- Background Checks: If your small business conducts background checks on all employees, this may be a task you want to outsource to save time and money.
- Drug Screenings: If you include drug screenings in your onboarding, this is also something you can outsource to a separate company.
- Benefits: One major thing you should consider outsourcing is the management of your benefits packages. As a smaller company, being able to compete with larger companies can seem next to impossible. This is not only because they can pay more in terms of salary, but also because they can provide them with much better benefits packages. However, by joining a PEO, you will gain access to the same level of benefits as Fortune 500 companies. This will make you a much more attractive option to prospective employees.
- Recruiting: Another commonly outsourced HR task is recruiting. By allowing another firm to manage all of your hiring and firing, you can focus more on day-to-day business. This is especially true for companies that hire in large volumes or have higher turnover rates.
Joining a PEO
Rather than focusing on individual tasks in terms of HR outsourcing, joining a professional employer organization can be one of the best ways to outsource your HR. Doing so will allow your company to outsource the management of:
- Payroll
- Benefits
- Compliance
- Health and wellness perks
- Risk mitigation
- Workers’ compensation insurance
- And much more
How America’s Back Office Can Help
If you are a small business that feels your HR team is being bogged down with tedious, repetitive tasks such as onboarding, payroll, and more, we’re here to help. By entrusting your HR services to our talented team of professionals, you will allow your HR representatives to focus on things that actually affect your day-to-day business. It can truly change your organization for the better to have in-house HR representatives who are free to build rapport with employees by solving conflicts, helping them find new internal opportunities and get promotions, etc. Contact us for an HR consultation to create a personalized package that can take your business to the next level.
