Have you ever wondered why countless business owners consider human resource outsourcing? Most of today’s business owners want to move their HR function away from administrative tasks and personnel management and focus on managing employee engagement to strengthen their workplace culture. If you’re looking to ensure that your teams are happy and will stick around for the foreseeable future, it’s best to take a closer look at the top reasons why you should outsource HR.
The Benefits of Outsourcing HR
Your Business Will Grow Faster
Good hiring practices are crucial when it comes to growing a business. Besides establishing a plan to recruit and onboard people, they’ll have to train employees and manage their performance.
Whether you’re planning on expanding outside state or national borders or becoming a multi-site employer, you’ll want expert guidance. Outsourcing HR allows you to understand employer requirements in the state in which you do business, follow state and local laws applicable to business, and find hiring, onboarding, and training best practices for the states and sites you have companies in.
You’ll Save Money
Since an experienced HR partner has the people, systems, and processes in place, they allow companies to reduce costs by up to 20 to 30% compared to keeping their HR functions in-house. Besides providing you with experts at a much lower cost than having an internal HR practitioner, outsourcing can also cause you to save on external training costs that can come with an in-house HR team.
You’ll Focus on What You Do Best
Those who run a medical practice want to focus on providing high-quality patient care. Likewise, those who operate an automotive technology business want to focus on repairing and maintaining vehicles. If you want to focus on what you and your team do best, you should consider outsourcing HR. With critical HR needs taken care of, you can spend more time and effort on your core business processes and customer-facing responsibilities while a seasoned expert handles your HR functions.
You’ll Have Access to Better HR Technology
Attempting to DIY HR technology increases the risk of duplicative programs and disparate systems as you manage personnel files, documents, resumes, training information, payroll data, timekeeping, PTO requests, and approvals.
Besides knowing that the best practices are for each HR function, HR experts have a proven technology platform that streamlines your processes, systems, and data and keeps everything organized in one secure location.
You’ll Mitigate Legal Risks and Improve Compliance
Growing your business and becoming a multi-state or multi-site employer subjects you to complicated rules and regulations associated with employment law and HR practices. If you don’t have the time or the workforce to keep up with the ever-changing federal, state, and local regulations, outsourcing HR is best.
Having an external team of experts focusing on HR can help you stay in compliance and avoid unnecessary financial and legal exposure.
Your Employees Will Be Happier at Work
Outsourcing HR enables you to provide comprehensive benefits that attract and retain the best talent. The right provider will not only find and select benefits but also help you manage them to reduce costs.
Meanwhile, your employees access outstanding fringe benefits such as opportunities to participate in professional training. When they know that the company cares enough to make them happy, you’ll minimize and correct inefficiencies such as low employee morale, lack of motivation, and high turnover.
Considering Human Resource Outsourcing?
At ClearPath, we want to help you focus on the things that grow your business, not the HR-related tasks that consume most of your days. Call us to make an appointment.