Outsourcing Human Resources
Should you outsource HR? Before deciding whether or not to outsource HR, let’s first define the problem. Does any of this sound familiar?
Are you frustrated with expensive health insurance options?
Did you get a huge renewal rate on your health care?
Do you have employee issues crop up that you don’t have answers to?
Are you working evenings or weekends doing routine HR tasks, like payroll, taxes, or compliance paperwork?
Are you ignoring HR issues and hoping they don’t turn into something costly?
Where do you turn for answers on HR issues?
What happens when your business grows? Can you handle the hiring, employee lifecycle, and compliance needs at scale?
HR Outsourcing Options
If none of the above questions sound familiar, great! You’re doing an excellent job of handling HR for your business.
However, if any of those points ring true, then it might be time to look for HR outsourcing options. So what are the options? Here are a few choices:
Status quo. Keep doing what you’re doing!
Find an insurance broker. The insurance broker can help if your concerns are only around health insurance rates. He or she may be able to find better options to insure your employees. That said, an insurance broker is not designed to help with HR, payroll, or safety. Which means you’ll need to find support in another company for those issues or struggle with the broker's “add-on” HR services.
Find a payroll provider. There are many good organizations that can serve your payroll needs. And, while some offer services that include HR, that is not their core competency. You may get payroll processed and struggle with other needs.
Find a staffing agency. Again, some organizations are built around recruiting, hiring, and onboarding new employees. And, while they may be very good at that, they don’t have the bandwidth to handle the full HR spectrum of skills.
Reach out to a PEO. PEOs are uniquely suited to handle all of your outsourced HR needs, including payroll, benefits, workers’ comp, and risk management. And they are specifically designed to meet the needs of small to mid-sized businesses. For more, visit About PEOs.
The pros and cons of outsourcing human resources.
Many small and medium businesses find their resources stretched thin, so they choose to double down on their strengths and outsource other tasks to outside experts. If you’re debating outsourcing human resources for your business, learn the pros and cons in this video.
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