Administrative responsibilities can bog down any company, especially the heavy burden of managing human resources. Employee development, administering benefits and dealing with compliance issues, among other things, can easily eat up all of your time. Here are four ways outsourcing some or all of your HR function can help your company grow.
- Save money – Some business owners might think hiring an outside company is just another expense, but outsourcing can result in notable savings across several HR functions. Human resources outsourcing allows companies to transform and get expertise without hiring additional personnel at high salaries. A fully functional human resources department also requires additional office space requiring small and mid-size businesses to expand to a larger location. Furthermore, HR outsourcing costs are variable and can be reduced when business needs warrant.
- Focus on strategy – Having a full-scale, in-house HR department doesn’t help you sell more of your services or gain bigger market share. What helps increase sales and market presence is eliminating time-consuming administrative tasks associated with HR management so your in-house resources can focus on revenue-generating activities. Many organizations would rather focus on their core strengths and/or moneymakers by outsourcing HR.
- Risk management – The increasingly complex regulatory environment that businesses have to navigate makes it nearly impossible for small, in-house HR teams to keep up with compliance issues. Compliance can be a huge risk as can legal liability. And if you do business with the government, compliance issues can turn into lawsuits, fines and penalties. Human resources outsourcing firms, whose primary purpose is to stay abreast on a variety of federal and state employment laws, help businesses minimize risk. Outsourced HR firms also maintain and audit company policies and practices, leveraging competitive industry knowledge, to ensure your organization and employees’ best interests remain protected.
- Access to world-class expertise and current technology – Outsourcing your HR function gives you access to world-class specialists you may never be able to afford to bring on-board permanently. Innovative HR services providers are knowledgable about the very latest technology, including big-data mining, analytics, benefits and compensation systems, virtual workforce leadership, cloud technology and social media.
When you run a business with limited time and resources, the last thing you want to do is divert your attention from the core function that’s your bread and butter. Outsourcing human resources can reduce your administrative workload, minimize risk and allow you to focus on your business objectives with peace of mind.