A growing number of small and medium-sized businesses are outsourcing some or all of their HR needs to third parties. There are many benefits to HR outsourcing – and different ways to do it.
4 Reasons to Outsource HR for Business
Noted in Forbes Magazine, 70% of smaller companies have ad hoc HR managers – non-HR employees who handle human resources in addition to their regular duties. Of these ad-hoc HR staff, 82% aren’t certified in human resources. Instead of relying on unqualified internal help, these companies would be better off outsourcing those HR duties to a Professional Employer Organization (PEO), which is a company that specializes in human resource services.
Companies that outsource their HR realize several key benefits. Here are four.
Grow Your Business
Whether you’re a startup or a more established company, one of your goals is to grow your business. Human resources play a vital role in any growing company, no matter how small. If you do not have an experienced HR staff, you can work with a PEO to develop an HR strategy and concrete hiring goals to help you grow your team.
Recruit the Best Talent
It’s difficult to find, interview, and hire the best possible talent for all the open positions a growing company may have. It is particularly challenging to find higher-level managers and directors. A PEO can help in developing the right hiring strategy, writing ads, posting to hiring sites and job boards, and evaluating qualified candidates – and make sure you get the best talent available for your new or open positions.
Comply with Employment Laws and Regulations
All companies, big and small, must comply with a variety of employment regulations and laws, including ADA, ADEA, FMLA, USERRA, FLSA, COBRA, ERISA, and OSHA. Maintaining employment law compliance is time-consuming and requires employment law expertise, which many Small and Medium Businesses (SMBs) may lack. Outsourcing compliance activities to a qualified PEO ensures that your company complies with all regulations and transfers the risk involved with these and other HR functions from you to the PEO.
Save Money
Many SMBs find that it costs less to outsource HR services to a PEO than it does to hire enough dedicated HR staff to perform those functions in-house. In addition, companies can leverage the PEO’s buying power to receive substantial discounts on worker’s compensation and health insurance.
Different Ways to Outsource HR
It’s not an all or nothing proposition; companies large or small can choose to outsource all or just part of their HR needs. A full-service PEO, such as Creative Business Resources, offers a customizable combination of HR services, including:
- Drug/background screening
- Employee benefits
- Employment law compliance
- Human capital and talent management
- Immigration compliance
- Payroll services
- Retirement plans
- Recruitment strategies
- Time and attendance solutions
- Workers’ compensation
Turn to CBR for Your HR Outsourcing Needs
When it’s time to outsource your HR needs, you need an outsourcing company that provides services that are easy to use and fit with your organization’s processes and operations. Whether you’re looking for a complete set of services or prefer to outsource only those services you need, you can turn to Creative Business Resources. We’ve been providing for more than two decades. We strive to offer high-value, high-quality, highly personalized services to businesses of any size.
Contact us today to learn more about outsourcing your company’s HR and Payroll needs.