3 Benefits of Outsourcing Your HRMay 2, 2017 - By: Matt Thomas
Let’s face it – administrative human resources tasks, while important to any company, are often time consuming and can easily get overlooked when up against day-to-day business development. This is where a third-party HR provider, also known as a PEO, steps in so that high-level management can focus on doing what they do best: finding new ways to make money. Gartner, Inc. research recently revealed that 80% of companies outsource at least one HR function, with good reason. While there are many benefits to outsourcing your HR functions, we’ve outlined the top three below:
- Saves time and money
We’ve all heard the phrase, “Time is money.” In the case of outsourcing your HR functions, this saying is twofold. According to the Outsourcing Institute, companies that outsource HR and payroll functions experience a cost savings of at least 9%. Not only will partnering with a PEO save your company money on benefits costs, payroll processing costs, compliance costs and more, relying on another entity to carry out the HR functions your business needs to run will free up your time to focus on money-making endeavors. Plus, the fee of working with a third-party HR provider will always be less than paying the individual salaries of an internal HR staff.
- Ensures compliance and accuracy
Partnering with a PEO means an outside team of experts will shoulder the burden of worrying about your company meeting the requirements of the many employment-related laws and regulations. The Fair Labor Standards Act, Federal Civil Rights laws, Family and Medical Leave Act and Employee Retirement Security Act are just a few of the important regulations every company must comply with. Stipulations surrounding these laws can change rapidly, so working with a third-party HR provider will ensure any changes are adhered to accurately and on time, from understanding the laws to helping create policies that follow them to communicating the importance of these policies with the rest of your team.
- Improves onboarding
On a lighter note, outsourcing your HR functions means great things for your business’s onboarding process. Not only will relying on your PEO partner for employee onboarding improve the efficiency of this important company function, it will ensure increased accuracy as well. A third-party HR provider will have a set process for onboarding employees – one that is both informative, time-tested and efficient.
There’s no doubt about it, maintaining quality HR functions is key to any successful organization. This coupled with the fact that HR administrative tasks can be time consuming and require the utmost accuracy means outsourcing your HR functions is the way to go.
For more information on ways a Professional Employee Organization (PEO) like WorkSmart can start helping your company today, visit our solutions page.