Top 10 Benefits of Outsourcing Human Resources
Top Ten Benefits of Outsourcing Human Resources - Human resources encompasses a variety of important functions—many of them complex and time-consuming. Outsourcing these activities to a skilled third party can offer numerous benefits for you, your employees and your bottom line.
Here are some of the top benefits of outsourcing your human resources rather than handling it in house.
1. Risk Management
Employee labor laws are numerous and complex—the average business owner is not well-versed and this can open him up to lawsuits and other costly repercussions. Outsourcing your human resources to firms that are experts can minimize the risk.
2. Reduced Cost
Managing your employees can be costly from paying staff to maintaining all sorts of expenses, such as software. HR firms can provide all these same services and it will typically cost less than doing it yourself. You can also reduce outsourcing costs when called for, meaning you are only paying for what you need when you need it.
3. Greater Efficiency
HR firms have the expertise and technology that can streamline the various administrative tasks that come along with managing employees. You are free to focus on improving the workplace without being bogged down with these more time-consuming tasks.
4. Employee Development
Firms that handle HR matters can help your company implement plans to improve employee performance, ensure adherence to company policies and procedures and generally help your company make sure the employees are meeting business goals as best they can.
5. Focus on Activities that Generate Revenue
Without having to worry about time-consuming tasks as preparing payroll, you are free to focus on the activities that will help you generate revenue, such as employee training, improving customer service skills, developing new products, building relationships and marketing. You can spend your energy doing what you do best and leave the rest to the professionals.
6. Help in Recruiting Talent
Many HR firms can provide recruiting services. They can also offer beneficial consults on what to look for in an employee, what sort of salary to offer, how to advertise your job openings and how to compose effective descriptions. But, like any other company, you have full say in hiring and terminating employees.
7. Competitive Edge
In order to recruit the best employees, you need to be able to offer attractive benefits packages. By working with an HR firm that serves as a co-employer, your company can gain access to health and other benefits that would normally only be available to a larger company with greater resources.
8. Greater Protection for Employees
There are a whole slew of protections offered by the government that are not available to employees of smaller businesses, which may affect desirability to work for you. By falling under the umbrella of a HR firm who serves as a co-employer to hundreds or thousands of employees, your workers will receive protections afforded under acts such as COBRA, ADA and FMLA.
9. Access to the Latest Technology
HR firms will be using the latest and greatest technology for managing payroll, ensuring compliance and all the other jobs they are tasked with. If you were managing HR activities on your own, you would either need to spend much more money to access this same technology or settle for inferior programs and systems.
10. Greater Peace of Mind
Running a business is no small undertaking, and when we are trying to do everything ourselves, especially things that are difficult and we do not know enough about, it can be stressful.
Outsourcing the important HR tasks to professionals whose only business is handling such matters leaves you with a feeling that everything is getting taken care of as it should by people who know what they are doing.
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