As a leading professional services firm, FosterThomas knows that HR and its growing demands can often times become overwhelming. When businesses try to allocate various HR tasks over several employees, the results can be inconsistent at best, and chaotic at worst. Regardless of industry or company size, HR responsibilities can weigh heavy, and outsourcing HR could be the solution you need. Even businesses that are currently outsourcing one or two HR functions, such as payroll, have a lot to gain by consolidating other HR administrative functions.
Here are our top five reasons to outsource your HR and streamline the process:
1. Save Money
Outsourcing your HR tasks to another company can help you to lower your business costs. In doing so, you will only ever pay for what you need, whether it’s regular, year-round tasks or processes which are only needed every so often. Because of this, you’ll be able to avoid taking on full-time staff to meet HR needs. When you have a competent outside agency handling HR responsibilities, you gain time needed to devote to core business functions. The overall effect is a healthier bottom line. Outsourcing your HR needs can often provide you with human resources experts at a much lower cost than would be required if hiring an internal team. This way, you’ll also save on associated training costs.
2. Mitigate Legal Risks
One lawsuit against your company can be enough to put you out of business. Having an external team of experts means you will be able to avoid unnecessary financial and legal exposure. By outsourcing HR, you give responsibility to someone who is specifically trained in the practical and legal aspects of HR. The cost of just one tax reporting violation could pay for a year of outsourced HR.
3. Improve Regulation Compliance
All companies have to comply with certain laws and regulations, some have more to comply with than others depending on the industry. Failing to comply has serious and expensive repercussions. However, compliance failure can be avoided by outsourcing HR needs to a team of experienced and trusted professionals.
4. Increase Employee Satisfaction
Today’s businesses have begun to acknowledge the need to move standard HR functions away from solely focusing on personnel management and administrative tasks. There is now a need to also direct attention towards managing employee engagement and strengthening internal workplace culture. By doing so, businesses are not only ensuring employee satisfaction in the workplace and boosting morale, but also maintaining talent they have worked hard to acquire, avoiding a high turnover rate. HR, when done right, can help minimize and correct these inefficiencies that cost your business every day.
5. Gain greater HR expertise
Knowing your weaknesses is as important as knowing your strengths, so handing off a task such as HR management to a HR management firm is a smart business decision. If you currently have an internal HR team, outsourced HR can work with your current team to build their knowledge and skills. While taking work off of your plate, the best value will be found in developing a true understanding of why HR related know-how is so important to any business.
As demanding as running a business today can be, it is important that companies focus on the aspects of their business that will achieve the most success. Business goals cannot be achieved unless time and care are invested in the people that can help to achieve them.
Devote your time and effort to making sure your business does what it does best, with confidence that HR practices are handled appropriately.
FosterThomas is a firm that will partner with you by providing your business with a custom approach; tailoring our services and products to meet your organization’s specific needs.