If you’re running a small business, you know of the time and work that needs to be put in every single day to keep the ship afloat.
You and your employees are required to wear several different hats each day to provide the best products and services to your clientele.
Because of that, you’re always on the look for ways to outsource certain aspects of the day to day in order to lessen the load for your team. Outsourcing HR functions can be a tremendous option for that.
Here are several advantages to outsourcing human resource needs to a third party.
As with outsourcing any other area of your business, it’s always going to be cheaper than paying for an in-house employee or two to run your HR department.
There are several ways that it reduces cost, most of which are connected to dodging all that comes with a salaried employee. You won’t have to worry about the salary amount, onboarding costs, hiring costs, and paying for employee benefits.
All of that can add up to 5 figures-worth of savings for your business simply by switching to a third-party.
Not to mention the number of hours you and your current employees will save by avoiding the HR tasks that can use up 40 to 50 hours a week.
You as the business owner can get back to doing what you do best: getting out in front of clients, building relationships, providing services, networking, etc. Leave all of the administrative paperwork for the third-party you’re paying to do so.
You didn’t build this company from the ground up to be chest-high in paperwork on a daily basis.
You built it to help people and make a profit doing it. You built it to be your own boss and conduct business the way you want to. You built it to start business relationships that will last a lifetime.
Quite frankly, you may have zero prior experience with the administrative side of the business. It’s vitally important that you get someone that does.
That’s why outsourcing your human resource functions is so advantageous. You’re giving your business an advantage by adding years of experience and HR know-how on your side.
Gone are the days of looking up human resource jargon online to find its meaning and seeing how to correctly file a document.
The company you outsource your HR needs to can help you with things such as workers’ compensation, which is required by law for you to provide your workers.
3. Higher Growth Rate for Your Business
Using outsourcing techniques such as a professional employer organization (PEO) for your HR functions has proven to help with the growth rate.
The small businesses that outsource their HR departments reap benefits such as lower expenses, a focus on HR tasks, and lower turnover rates that lead to faster growth.
Not only is that growth quick, but it’s also sustainable because of the measurable improvements that have occurred on the HR side of things.
Think about it this way… Which small business do you think has a better chance of succeeding: a) the company that attempts to perform it’s HR functions without proper experience or b) the company that outsources those functions to an expert?
You’re setting yourself and your employees up for success. Not only are you feeling the benefits of it, but your workers will too.
Their HR needs will be overseen by a professional with experience in integrating administrative best practices.
4. Less Crucial HR Mistakes
Simply put: not equipping your business with professional HR experience in some capacity can lead to crucial, costly, and illegal mistakes.
For example, prior to reading this article, you may not have realized that workers’ compensation is required by law. What if one of your workers got injured on a job site and needed to file a claim?
Your company’s future would’ve been compromised due to a large amount of fines it would need to pay off for not having workers’ comp insurance.
Not to mention that hiring and managing humans is an extremely difficult job. There are a lot of human resource techniques involved in performing those tasks the right way. You can use all the help you can get on that side of things.
A costly mistake of mishandling an HR need that one of your employees has could lead to them finding employment elsewhere. You can’t afford to lose your best talent.
5. Improved Hiring Process
If you don’t have prior experience with hiring employees, you may end up in a world of hurt when it comes time to add employees to your team.
For example, say you’re a construction business. You know everything there is to know about contracting and seeing a project through to fruition. However, you don’t know anything about IT needs that your small business has.
So, when you go to hire an IT technician for your business, you’ll have no idea the type of questions to ask or qualifications to look out for.
Rather, if you outsourced your HR functions, they could help you with your entire hiring process. They can make recommendations to help you land the perfect candidate(s).
Start Outsourcing HR Functions for Your Business Today!
Now that you’ve seen all the benefits your small business can have access to, it’s plain to see that outsourcing HR functions are the way to go.
Be sure to read our article on how a professional employer organization can help establish policy for your small business.
For more inquiries, please begin by requesting an online quote and we’ll be delighted to assist you further.