Human Resources is one of the most important parts of any business. Not only does it give your workers a resource for employee and management relations, but it also protects your business from wrongdoing and liability.
Beyond that, HR helps recruit employees, screens applicants, processes hiring paperwork, and facilitates payment and training.
In short, HR is a complex position that requires an expert eye and a professional demeanor. Not just anyone can, or should, fill this role.
Many small and mid-sized companies simply do not have the resources and expertise to properly facilitate an efficient in-house HR department.
In these cases, companies elect to outsource their HR departments.
But what are the benefits of outsourcing HR duties to external firms?
In this post, we will look at why a company or agency might choose to use an outside firm for their HR needs.
One of the main reasons that a company might outsource their HR work is that they are already outsourcing some HR duties and, to save time and resources, simply want to outsource all the work.
Let’s look at some of the biggest positives your business may see from outsourcing your HR duties.
Payroll can be complicated, especially for small businesses that have no formal training. It involves paying all employees proper wages, correctly calculating the proper time of hourly workers, deducting the proper amount of taxes from workers' paychecks, and more.
Many wage and hour laws vary from state to state, so employers need to ensure that they are well versed in those concepts if they choose to keep payroll in-house.
Because many businesses cannot spare the time and energy to familiarize themselves with these concepts, they elect to cheaply outsource payroll.
Even if you already have a dedicated HR employee, outsourcing some or all your HR duties can help ensure that your management team has more time on their hands. When you outsource your HR responsibilities, you instantly have access to a plethora of knowledge from a dedicated and certified HR professional. They can offer insight and help you find unique solutions to complex problems in less time.
Many outside HR services can help you review company policies to ensure that you are in line with all laws and regulations. In addition, they can give you a guide on all policies and practices that need to be revised, updated, or changed.
HR handles all employee benefits including health insurance and 401(k)s. These tasks require a copious amount of paperwork and prior knowledge that many business owners and managers simply do not have. When you outsource your HR, your business instantly gains access to open enrollment, renewals, offers and termination benefits, and annual audits for all plans.
You don’t want to hire just anybody. You need to make sure that every potential employee holds themselves to the standards of excellence that your company defines. HR is responsible for all background checks and screenings for the positions you are hiring for. This includes drug tests, physicals, background checks, and more that are performed after a job offer has been submitted.
Maintaining employee relations is key for any well-functioning business. This begins at employee orientation and extends to the employee's last day of retirement. However, this process can be very time-consuming for company management. Outside HR firms can handle employee relations as well as new employee orientation to ensure leadership has more time for more immediate work.
All businesses, no matter what they specialize in, rely on outside help to ensure that they meet their needs and turn a profit.
Outsourcing your HR responsibilities is one of the best ways to save in-house management time and resources while also keeping employee function on track.
Beyond HR duties, if your company is looking for extra help SOCA offers many exciting resources meant for small and medium-sized businesses. Whether you need improved healthcare coverage, better local connections, or a stronger support net, SOCA has you covered.
Encourage your local chamber of commerce to join up with SOCA to see how we could help your business today.