More and more businesses are going the way of outsourcing HR instead of handling those time-consuming tasks themselves.
Whether your business is brand-new or has decades of experience, HR outsourcing is an option with a range of benefits that you won’t want to miss out on.
Keep reading to learn all about HR outsourcing and why your company may need it.
1. What Is HR Outsourcing?
An outsourcing HR functions in a similar way to an in-house HR but the main difference is that you won’t be hiring HR employees. Rather, your HR will be handled by a third-party that you signed a contract with.
In that case, most if not all of the usual human resource functions will be handled by that external entity. The degree of outsourcing can be decided by you based on your needs. You can designate only one or two specific functions to your third party or you can hand over the whole of the HR department.
An experienced broker will be able to work with you to find an HR outsourcing solution that fits perfectly with your business’s needs.
2. It Reduces Costs
When you outsource HR, you can significantly reduce overhead costs. Not only can you avoid having to use up valuable office space but you can do away with hiring an entire HR team. Instead of spending so much time and money hiring an HR team who will hire your other employees, you can leave it to an external team that’s experienced and knowledgeable.
These savings will go a long way in helping your business grow in other important aspects, especially if you’re a small business. With so much competition out there, you can have an advantage that will allow you to perform at a quicker and more efficient pace.
This means you’ll be able to focus on expenses that will directly lead to generating revenue for your business. HR outsourcing costs vary depending on the situation and degree but there’s almost always an affordable option out there.
3. It Improves Risk Management
With an outsourced HR, you can focus on the business side of things while others focus on the legal side and more.
For instance, there is a range of fluctuating laws and regulations related to labor and employment. You shouldn’t have to waste time memorizing and paying attention to these legalities when a knowledgeable team can do it for you.
It’s the responsibility of your outsourced HR team to know both the state and federal laws inside and out. They can give you peace of mind knowing that your business is complying with every law and regulation to a T.
That way, you can be protected and minimize your risk of any legal trouble that could stem from negligence or some other reason.
4. It Gives Access To More Talent
One of the main factors of a great business is a cohesive team of talented employees. However, it can be quite difficult to find the right person for the job. There are various outlets that can connect an employer to potential employees but these sites are by no means exhaustive.
If you truly want access to the best talent around the world, then an outsourced HR can help you.
Why be limited to one country let alone one job hunting website? The key to finding the right person for a vacant position is to have connections. This is something an outsourced HR has in spades.
In no time, you’ll be able to assemble a dream team that can give your competition a run for its money.
5. It Can Monitor Employee Development
To ensure that your employees are everything they could be, an outsourced HR can further help you by monitoring and guiding the development of your employees.
It can take a lot of time and effort to reliably track the progress and performance of every employee, but that is exactly what your third-party HR team is equipped to do.
Not only will they ensure that employees follow all procedures and policies, but they can keep track of whether or not certain business goals are being achieved.
As these factors are being tracked, the HR team can report their findings to your management team. By freeing up much more time for your managers, they can focus on any number of important tasks to ensure a well-oiled machine.
6. It Can Include Health Benefits
When it comes to hiring employees, health insurance is often a big question and concern.
Did you know that corporations are the only ones who can have access to certain employee benefits packages?
However, if you’re running a small business, you’ll be glad to know that a PEO can give you access to corporate packages that would otherwise be unavailable. Not only will this save you time and money, but it will also make your employees and their families happy.
More choices mean that more employees can get the coverage that’s right for their needs.
From voluntary benefits to overall medical plans, when your employees are covered, they can have the motivation to focus on their job and excel.
Are You Ready To Reap The Benefits Of HR Outsourcing?
Now that you know all about HR outsourcing and why your company may need it, you can decide if it’s right for you. That way, you can save time and money.
Giga Solutions can offer your business expert services related to PEO solutions, commercial brokerage, and more. With us on your side, you’ll have a lot more time for handling the true business aspects of your brand.
If you have any questions about our highly-rated services, feel free to contact us. We’re always happy to help out.