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Trends in HR Outsourcing
August 2019

What Should Your Business Outsource?

Companies outsource so many things to business partners. Many companies outsource payroll services and taxes. It’s just as common to outsource the company’s IT needs, web design, and marketing. It’s cost-effective to let others handle these jobs. Despite this, there are business owners who try to do it all. Have you ever considered outsourcing your human resources administration?

Isn’t It Better to Keep HR In-House?

Are you doing the bulk of the HR on your own? Think about how you’re arranging your daily schedule. You’re at work for nine hours, but one of those involves leaving for lunch. That leaves you eight hours to handle the rest of your daily tasks.

There’s an hour spent reading resumes or applications. You spend two hours interviewing applicants. You have calls to return, benefits to negotiate for better rates, emails to answer, and so many other duties. You also need to keep up with employment laws and make sure you’re in compliance. How often do you run out of time?

When a business owner devotes hours to HR duties, it’s easy to run out of time to return a prospective customer’s call. There’s no time to leave the office and spend time with your employees. If you’re ignoring them, they may decide it’s not the right environment for them and leave to work for the competition.

Even with an HR team in place, you may not be getting your money’s worth. When you add the cost of that employee’s salary, paid time off, 401k matches, and insurance contributions, you could be spending more than you can really afford if you want to grow your business.

What Does Outsourcing HR Entail?

One of the first things that occurs when you outsource your HR to a business partner is that policies are tightened up to ensure they meet the current laws. The specialist you work with comes up with an employee handbook that’s easy to read and understand. You’ll have someone who can create job descriptions that draw the employees that best fit your needs.

As you hire new employees, the HR team can interview and train them. They can walk new employees through the benefits package and help them enroll. If they do leave your company, you can have the outsourcing team do the exit interviews for you. You’re kept in the loop each step of the way, so there’s never a lapse in communication between yourself and the outsource team. You’re welcome to check over all of their work and make sure you’re satisfied. You have the final say in any HR decision when you outsource.

Employee files are all organized and filed in a secure online database for you to access whenever you need. If you ever have questions, you’ll reach the HR team via phone or email. There’s no more walking around the building to find where your HR employee is.

All of this comes without having to pay for another employee and all of the benefits that employee would be entitled to. It’s outsourced, so you’re paying the consultants for their service and nothing more unless you want to outsource other areas like payroll and time and labor management.

What Are Some Of The Other Added Benefits Of Outsourcing HR To A Business Partner?

For many small to medium sized companies, outsourcing HR can represent a dramatic cost savings and quality of HR service improvement.  Some of the largest benefits to outsourcing HR include:

  • Spending Less:  An average HR manager earns upwards of $75,000 per year plus benefits, and most HR departments have several additional employees, easily tallying several hundred thousand dollars per year just in salaries, benefits, and overhead.
  • Better & Less Expensive Benefits: Bulk buying power of dedicated HR companies means you can reap the benefits of better HR benefits at a lower cost.
  • Better HR: For a variety of reasons, having your HR functions outside your company benefit your company.  These include spending less time on HR functions, avoiding penalties for non-compliance, less liability, and a variety of other time and cost saving benefits. 

Emphasis HR works with you to find the right services for your company’s HR needs. They’ll look at your company’s goals and current structure and come up with a plan to streamline everything. This leaves you time to connect with your employees, grow your business, and still have time at the end of the day to unwind with family and friends.

We arrange to have our clients work with a dedicated manager/director and HR generalist to ensure all areas of HR are covered to your satisfaction. Contact us to learn more. We offer free demonstrations, so there’s no risk. Call 888-688-1680 to get started.