Is This Your Situation: Considering HR Outsourcing

by | Apr 15, 2024 | Blog

Do you have limited personnel and feel that HR demands are overwhelming you? Proper employee management is crucial to executing your day-to-day business. Click through to decide when HR outsourcing can help and what disadvantages it may hold.
Outsourced HR services are designed to streamline functions, reduce expenses and help meet your firm’s operational goals. You may hire a third party to oversee some or all of your HR functions, including payroll processing, employee benefits administration and talent acquisition.

Outsourcing is a partnership between your company and the outsourcing firm — sharing business liabilities can relieve some of your burdens in staying compliant and reducing your risks. You have the flexibility to outsource one or two tasks if that’s all you need.

A big advantage is leveraging the power of offering competitive employee benefits, including health insurance, 401(k) retirement plans and health savings accounts. Third-party providers often have stronger buying power, so you can offer employees more variety and more affordable benefit options.


HR tasks that can be outsourced include:

  • Attracting and developing talent as well as onboarding and retention.
  • Keeping up with federal, state and local legislative and regulatory compliance for changing labor and employment laws as well as insurance claims management.
  • Administering benefits and payroll for your remote workforce, time and attendance reporting, and new hire reporting. Cloud-based solutions support off-site access to the company. Employees can complete essential functions from their smartphones or tablets.
  • Creating company policies for employee relations tasks. Develop a customized employee handbook — company policies, procedures, benefits and training — so employees know what’s expected of them.
  • Handling your Family and Medical Leave Act-related workload, making sure leave is administered properly and in compliance with applicable rules and regulations.
  • Generating custom reporting on employee data, expense management, timekeeping, labor management and forecasting.
    Offering employee counseling, such as helping your staff access mental health services, as well as programs to promote attendance, productivity and morale.


How do you know if it’s right for you?

Some scenarios that may lead to outsourcing HR include:

  • You want access to technology that is too expensive or complex to run on your own.
  • You feel that you’re spending a disproportionate amount of time on HR tasks.
  • You have liability exposure.
  • Your HR functions are spread among employees in several departments.
  • Your firm isn’t large enough to have an in-house HR team and your staff is having trouble properly balancing hiring tasks and employee management.

How does outsourcing reduce costs?

  • Frees up time and resources.
  • Lowers health expenses.
  • Reduces HR expenses.
  • Reduces turnover.
  • Helps generate higher revenue growth.

An outsourcer can review your talent acquisition strategy, offer a streamlined and integrated applicant tracking system, and assist in developing targeted job descriptions. Finding the right partner can help identify areas of concern and help you take the steps needed to stay on track — missteps can cost you a lot in fines and levies. Give us a call today.

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