Why and How to Outsource Your HR Duties

The average small business has around 10 employees and is easy to manage.

However, as your business grows, this number is bound to increase, and managing your employees becomes a lot harder. You could break your back, keeping your employees in check, or outsource your HR duties.

Freeing your HR responsibilities lifts a huge burden from your back. It’s certainly more feasible than hiring HR staff, because HR staff also need oversight. Your best bet is outsourcing HR companies.

There are many HR outsourcing companies eager to take over your HR processes, but is hiring one a good idea? Join us today as we look at why you should outsource your HR tasks and how you can do so.

You Can Focus on More Important company Processes

With HR responsibilities out of the way, you can divert your focus to profit-making aspects of the business. You’ll have more time on your hands to ensure your business runs seamlessly. It also gives you the opportunity to talk with potential partners and investors and grow your business.  

It Saves You Money

Outsourcing HR functions allow you to cut costs for improved profitability. Relegating HR functions to a third-party company means the company will cater to certain HR costs. This means you can save a bundle, but only if you hire the right outsourcing company.

Minimizes Legal Risks

Failing to comply with certain employment laws could lead to hefty fines and ruin your company’s reputation. HR companies have extensive knowledge of employment rules and regulations. They’ll use this knowledge to ensure your company is in line with all legal requirements and mitigate legal risks.

How to Outsource HR Duties

There are a couple of outsourcing methods you can choose from. They are as follows:

Business-Process Outsourcing

Business-process outsourcing or BPO is when you outsource a single HR process.  Examples of processes you can outsource include payroll, recruitment, and benefits administration. This is an especially useful form of outsourcing if your business lacks the infrastructure for a particular HR function.

Single-Source Outsourcing

With a single-source outsourcing arrangement, the outsourcing company is fully responsible for a company’s HR responsibilities. You can think of it like your entire HR department transitioning to the HR company. The HR company handles all responsibilities from the onset of the employee life cycle to its termination.

This includes everything from recruitment, time and labor management, and payroll. Companies like Syndeo are among the famous names in this form of HR outsourcing.

Professional Employer Organizations

Professional employer organizations or PEOs are companies that lease their employers to an organization. With this arrangement, the PEO will give you employees and handle all HR operations. Your company pays the PEO a monthly administration fee, depending on the number of employees.

Outsourcing HR Companies Are the Way to Go

Outsourcing HR companies may be the answer to all your HR problems. Hire an HR company to take over your HR functions and heave a sigh of relief. You have absolutely nothing to lose.

Don’t forget to check out the other posts for more informative content.