Updated March 7, 2022
Businesses, large and small, have turned to outsourcing to get ahead. Here are a few reasons why.
What is Outsourcing?How does outsourcing work? The first step is to identify the processes and areas of your business where you need the most support. Then, select the outsourcing partners that align with your business goals and your budget. Finally, weigh the short- and long-term benefits and costs of outsourcing versus hiring staff.
According to the Small Business Administration, more than one-third of small businesses currently outsource at least some part of their services and business processes and more employers plan to explore this option in the future. For businesses, large and small, some of the most common benefits include:
Saves Time. Employers find that one of the most important benefits of outsourcing is the time gained to focus on their business. According to a recent Deloitte survey, 57% of businesses use outsourcing for this reason. Outsourcing services, such as payroll and HR for example, significantly reduces a business’s administrative workload.
Saves Money. According to a same survey, 59% of businesses use outsourcing as a strategy to reduce expenses. Outsourcing shifts fixed labor costs to variable costs and provides the employer the flexibility of paying for only the services needed. This frees up more that can be used to invest in other parts of your business.
It’s easy to see how outsourcing certain functions can take your business to another level. By aligning the outsourced service with your company goals, employers can access new tools, implement more innovative strategies, and gain valuable industry expertise to positively impact company performance.
Need Help? Propel HR offers a number of services that can be outsourced as a standalone service or as part of our IRS-certified PEO arrangement. To find out more, contact one of our Propel Pros at 1-800-446-6567.
Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for 25 years. Propel partners with small to midsized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. Visit our new website at www.propelhr.com.