5 Signs Its Time To Outsource HR

Posted by HR Division of Propel HR on 6/27/19 11:38 AM
HR Division of Propel HR
Find me on:
Posted on: June 27, 2019

For small businesses, a do-it-yourself approach to HR may seem like a good idea at first. It allows you to maintain control and costs.  But what if you want your business to grow, be more productive or more competitive? How do you know when it’s time to get help and to outsource HR? Here are 5 of the most common signs.

Your staff is overworked. 

AdobeStock_118765229You’ve finally reached your goals and business is growing, but so is the burden of HR-related tasks, such as compliance, payroll, employee benefits, workers’ compensation, training, and hiring. As employment laws and regulations increase, HR is becoming more than just about managing people. The job is more complex and time-consuming and as a result, may be too costly for your small business to manage.

Mistakes, fines and compliance issues are mounting. 

Keeping up with employment laws can be a full-time job alone and compliance violations can be expensive. Even with a dedicated HR professional on staff, it’s difficult to stay on top of new state and federal laws and ever-changing reporting requirements and deadlines.

Download your free HR Checklist

Your business is growing, your bottom line is not. 

Your business is growing but you are not making money. Instead, you are spending more just to keep up. You may feel stuck trying to stay on top of growth and finding ways to be more efficient.

Keeping employees and attracting top talent is an issue. 

BenefitsImpactBottomline_Blog051519_05Recruiting and keeping talent is more difficult today than ever before. With unemployment rates at a record low, it’s a candidate-driven market and top performers are shopping top companies for the best jobs -- with the best benefits. Yet, small businesses often struggle with providing competitive benefits packages.

You spend more time on HR-related tasks and less on your business. 

Administrative HR duties are time-consuming which leaves you less time to grow and build your business.

READ MORE: Ways a PEO Can Help with HR

Get back to business. 

If you notice any of these signs, your business may benefit from outsourcing HR to a certified team of  pharmacist chemist woman group  standing in pharmacy drugstoreProfessional Employment Organization (PEO). Basically, PEOs become co-employers with a business, meaning that there’s a contractual allocation and sharing of employer responsibilities. Your business still maintains control over operations and managing employees, while the PEO oversees HR responsibilities, such as payroll, workers’ comp insurance, and benefits administration. In turn, small businesses are able to focus on growing their business and improving overall efficiency.

With enhanced services and more capabilities, PEOs have proven to be more than an outsourced service – but a strategic solution delivering big benefits. According to a study conducted by McBassi & Company, companies that partner with a PEO experience:

  • Higher growth rates. PEO clients grow faster, have lower rates of employee turnover, and have higher rates of business survival than other comparable small businesses. Seventy percent of companies that use a PEO report revenue increases and revenue growth that are twice that of comparable companies that do not use a PEO.
  • Lower turnover rates. Turnover is costly. Businesses that use a PEO have 15 percent lower employee turnover than industry averages.
  • Higher survival rates. Businesses that use PEOs have higher survival rates and are approximately 50 percent less likely to go out of business.
  • More HR services at a lower rate per employee. According to a study by the National Association of Professional Employer Organizations (NAPEO), PEOs provide access to more HR services at a cost close to $450 lower per employee, compared to companies that manage their HR in-house.

READ MORE:  How Pooling Employees Reduces Health Insurance Costs

Is your business growing? Are you looking for ways to reduce costs and liability? Do you need better benefits to attract qualified candidates and keep employees? Are you looking for ways to cut spending? Do you need top-rated health insurance and better employee benefits? If the answer is “Yes,” then it may be a good time to consider partnering with a certified PEO and get back to business.

Choosing the Right PEO

Topics: Featured, Human Resources, PEO, Small Business, Employee Management, Regulations, Compliance, HR

Subscribe to our Blog for Fresh Weekly Content

Your HR Checklist For Q3

Stay up to date with new laws, deadlines and important changes related to payroll, ... Read More

PEOs are in the Business of Small Business

PEOs play a vital role in helping small businesses across the country thrive and survive.  Read More

3 New Employment Laws That Could Impact Your Business

New changes in three employment laws may have a significant impact on your business. ... Read More


HR Division of Propel HR

The HR Division is made up of a team of professionals with a vast level of experience and HR expertise, assisting organizations of all sizes and within a wide variety of industries. They readily partner with clients to address strategic and compliance challenges surrounding the employment life-cycle and the ever-changing laws that regulate it. Inquire below about how they can help you!