If you are considering outsourcing human resources, you are in good company! Whether you will outsource all HR functions or specific duties, you are part of a growing trend. Since the 1970s, HR has grown increasingly more complex as health care programs, retirement plans and other laws are implemented at federal and state levels. In fact, Forbes.com says outsourcing HR can save money and improve compliance.
The demands of human resource management can easily overwhelm small companies with limited personnel. Ensuring compliance to federal and state regulations, managing employee hiring and properly administering their benefits can be time consuming work and costly if mismanaged! If you struggle to maintain HR functions and ensure legal compliance, you might need help.
For larger organizations with a well-staffed HR department, you may be considering outsourcing just a few specific duties to allow your department to operate more smoothly. Perhaps your HR team needs more time and energy to implement new initiatives like company-wide performance plans. Additionally, outsourcing specific HR tasks can provide companies with an additional layer of protection against error or oversight.
Benefits of Outsourcing HR
An increasing number of small and large businesses are outsourcing their HR functions. The Society for Human Resource Management (SHRM) conducted an in-depth survey of HR outsourcing, and found that the 10 leading reasons companies turn to external HR experts are to:
- Save money and reduce operating expenses
- Control legal risk and improve compliance
- Gain greater HR expertise
- Streamline HR functions
- Offer services the organization could not otherwise provide
- Allow the company to focus on its core business
- Reduce the number of HR staff and related expenses
- Improve service delivery
- Allow HR staff to put more emphasis on strategy
- Make up for the lack of in-house expertise
SHRM noted that the top 10 HR functions turned over to an outsourced HR administrator, completely or in part, were:
- Background checks
- Employee assistance and counseling services
- Flexible spending account administration
- COBRA administration
- Health care benefits administration
- Temporary staffing
- Pension benefits administration
- Retirement benefits administration
- Employee relocation
- Payroll administration
Dedicated HR firms like Scott Human Resources can also assist your business with other services, too, including executive development and coaching, management training, compensation plan administration, risk management and training programs.
Scott HR provides the professional services that improve bottom-line dollars and employee productivity. We partner with our clients to provide strategies that are customized to meet specific goals while offering responsive and reliable customer service.