Outsourcing business functions, including marketing and IT, isn't a new concept. In fact, businesses in the U.S. outsource around 300,000 jobs each year.
But, did you know that human resources (HR) can also be outsourced? In fact, there are 173,000 small and mid-sized businesses and counting that outsource their HR functions in the U.S. Many of these businesses outsource their HR via an HR outsourcing organization (HRO), often referred to as a professional employer organization (PEO).
A recent study showed that businesses that utilize an HRO partner can grow 7 to 9 percent faster, have 10 to 14 percent lower employee turnover, and are 50 percent less likely to go out of business. Perhaps your business could benefit from such a service. Here are some key signs that you should look into HR outsourcing.
People Management is Time Consuming
Managing a team of employees is a complicated and time-consuming process. If you don't have the necessary resources within your organization, it's easy to find yourself or a team member single-handedly trying to hire employees, conduct training sessions, onboard new hires, manage payroll, find and administer employee benefits, and more.
Most business owners don't start a new venture so that they can spend all of their time on administrative functions. Those that find that employee management is taking focus away from the growth and success of the business, may need to align themselves with a human resources outsourcing organization (HRO). These partners can provide you with the services needed to simplify your human resources responsibilities.
You’re Not Familiar with Employment Laws
When you outsource human resources, you gain access to highly trained HR professionals that keep you up-to-date with applicable employment laws.
These laws change frequently and can be extremely difficult to keep track of. Rather than spend a vast amount of time researching legislation and/or running into costly penalties, you can outsource HR and let a professional resource provide the necessary assistance.
Your Business Might Struggle With Retention
One of the most common reasons that employees leave an organization is because they are unhappy with how HR-related issues are handled. Perhaps management is inconsistent, or they feel that their efforts are not valued.
HRO partners can provide the necessary tools and resources to help boost your organization's retention. Performance management tools, for example, develop and retain top employees and increase employee engagement with scheduled reviews and assessments, feedback forms, and automated goal reminders. There are also tools to help supervisors.
Better yet, HR outsourcing can also include access to top-tier employee benefits, workers' compensation insurance, and perks that help employees feel even more valued.
Save Time, Save Money
When you outsource your human resources responsibilities, you simplify your organization, save time, and avoid additional administrative costs. But, of course, your employees will enjoy the benefits as well!
If your business is ready to outsource HR, contact us today. The SynchronyHR team is here to help!