How many hours do you spend performing HR functions that are necessary for the health of your business but are not actually part of your skill set or job description? For example:
- COBRA administration
- Unemployment
- Benefits reconciliation
- Collecting information for various tax forms
- Recordkeeping
- 401(k) plans
- Employee handbooks
For many CFOs and managers, the hours are too many to count—but they know those complex, tedious tasks must get done or the company suffers.
If you’re an HR manager or small business owner tasked with finding a way to become more efficient—or if you don’t have enough time to accomplish the tasks on your lists consistently and reliably—the answer may be to outsource your HR functions.
HR outsourcing is one of the most common (and beneficial!) strategies businesses use to handle critical human resource-related tasks when they simply can’t manage them in-house. In this article, we’ll look at how outsourcing HR for small businesses can produce big benefits.
Tired of running your small business day-in and day-out—but not actually getting to the point you want to be? Learn how a PEO might be exactly what your organization needs.
Outsourcing HR For Small Business: 4 Major Benefits
1. Decrease In Costs
HR costs are time-consuming and add up quickly. Payroll, offboarding and onboarding, and compliance are all mandatory tasks that are expensive to carry out.
Outsourcing can be an effective way to decrease the costs associated with those tasks. It helps you reduce inefficiencies in your business and strategize benefit contribution options that may bring more stability to your budget. Outsourcing small human resources tasks almost always leads to improvements in the management of benefits, HR, and payroll offerings.
At GenesisHR, we frequently work with companies that are growing and can’t handle the workload. Sometimes they are overburdened with compliance tasks or deadlines, and sometimes they simply don’t feel confident that they can handle certain issues on their own.
Outsourcing can be an effective way to decrease the costs associated with payroll, offboarding, onboarding, and compliance. Click To Tweet2. Reduction In Errors
Small business owners or HR professionals in small businesses have to wear many hats. When you’re trying to get through a multitude of tasks quickly, the risk of error rises, which could put your company in jeopardy. I see small businesses making mistakes specifically in the areas of employee relations and leaves of absences, payroll, and workers compensation.
Outsourcing certain tasks to a PEO can help reduce compliance errors. At Genesis HR, our service team is dedicated to your account: We’ll work with you to address any and all HR-related tasks, from payroll and benefits administration to employee relations, making sure everything is done right the first time..
3. Proper Compliance
If your small business doesn’t have an in-house compliance professional, you could be inadvertently neglecting certain compliance tasks. Occasionally, this neglect could put you in hot water. Many compliance regulations—especially those having to do with employee relations— are not common sense to business owners.
By outsourcing your HR to a PEO, you get a team of compliance experts ready to provide oversight in areas of accounting, benefits, payroll, hiring, evaluation, and more.
4. Increased Productivity
When a small business doesn’t have designated HR personnel, other employees must pinch-hit in these areas, investing time in HR tasks that aren’t their territory. They end up flying by the seat of their pants, not strategically planning and executing ideas, and potentially making more work for every member of their team.
Outsourcing gives these employees time back to focus on doing their own tasks well. You get experts to handle the HR strategies and tools your business will use to thrive. In this way, outsourcing offers a long-term benefit—it will eventually help you scale efficiently and become more productive in the long run.
Looking for help with HR outsourcing? Contact GenesisHR.
We’re a PEO with more than 30 years of experience in providing the kind of HR support that helps small businesses grow. If you’ve never heard of a PEO, you may want to learn more about what they are and how they operate. This guide is a great starting place. Then, if you have any questions (and we bet you will!), get in touch with our experts at GenesisHR. We’ll talk specifics about your situation and see how we might be able to partner with you to help your company thrive.
