Looking for more efficient ways to run your small business for less? Outsourcing can be a valuable partner.
Outsourcing is a strategy of hiring outside business experts to perform a specific service traditionally handled in-house by the company's staff. Many small businesses already take advantage of outsourcing certain HR-related tasks, such as payroll, employee benefits administration, including employee health plans, and compliance and risk management.
Here are few top reasons that many small businesses outsource.
Access to More Expertise. Your HR team benefits from the knowledge and experience of a seasoned team of HR experts who have solved challenges like yours for many other businesses.
Saves Time & Money. Because you pay for only the services you need, the cost to outsource is often less expensive than the cost it would take to expand your Human Resources department. In addition, there are also savings in terms of increased productivity and efficiency. In addition, by outsourcing time-consuming administrative functions, your in-house team gains more time to get more done, and company leadership can focus on growing the business.
The growing responsibilities of HR are more complex and time-consuming than ever before and often too costly for small businesses to manage on their own. Here are a few challenges where outsourcing can help.
Keeping and Attracting Top Talent. HR professionals have their work cut out for them to bring employees back to work, retain top talent, and find qualified workers. During the pandemic, many workers reassessed their jobs and need for a work-life balance. As a result, many opted not to return. Outsourcing can help employers identify qualified candidates. It can also help keep employees long-term by providing strategies to strengthen employee engagement, including guidance on assembling a competitive employee benefits package that is meaningful to your workforce and right for your business.
▶️▶️Read More: Health Benefits Beyond Health Insurance
Reducing Workplace Risks. Staying on top of new regulations and changes in employment law is no easy task. In addition to federal employment laws, many state and local governments have their own laws. While not all laws apply to all employers, HR managers should be familiar with the laws that may affect your business.
Staying in Compliance with Multiple State Regulations. Navigating different and sometimes conflicting labor laws can be a compliance challenge for businesses both large and small. Outsourcing can help with guidance on reducing risks and preventing costly compliance violations, including complying with the labor laws and regulations governed by the state where employees are working, not just where the employer is based.
Providing Better Benefits & Affordable Health Insurance Options. Enhanced employee benefits packages and affordable enterprise-level health insurance plans are at the top of the list for many job seekers and are also important for keeping your best employees.
▶️▶️Read More: How To Select Employee Benefits
According to a Society of Human Resources Management (SHRM) research study focused on employee benefits, employers who improved their employee benefits packages reported better overall employee performance and productivity, as well as improved recruitment and retention results. Over the past year, the needs of your workforce have likely changed. Take a fresh look at your current employee benefits package to make sure it includes more perks and competitive benefits, such as mental health benefits.
What you gain is a valued partner and HR expert to your team to handle the time-consuming administrative HR workload. And as a result, you also get more time back to concentrate on other crucial aspects of running your business, such as operations and financial growth.
Losing Your In-House HR Staff. Your in-house Human Resources team may not be equipped to handle the growing administrative demands of HR or meet the deadlines and requirements of changing employment laws. Outsourcing can give your HR staff access to a team of trusted HR experts who can help fill the gaps, protect your company from potential risks and compliance issues, and help your business run more smoothly.
Do you have a partner on your team helping you make important decisions about your business? Every small business is faced with challenges and change. But those who partnered with an IRS-certified PEO, like Propel HR, to outsource HR-related tasks benefited from expert guidance and the support to help their business grow.