In today’s employee-driven labor market, attracting and retaining high-quality talent continues to be a top challenge for companies across all industries. In order to stay ahead, it is critical for businesses to be strategic and dynamic with their approach to human resource management.
Having a strong HR team can be the determining factor for a company to come out ahead in the talent battle. However, small businesses may not have the budget to hire full-time HR staff, and navigating tricky HR issues often requires highly-experienced professionals.
Luckily, there is a growing number of options available for you to outsource your HR functions. Research shows that 57% of companies have increased their use of outsourcing, and the HR sector has seen some of the most distinguished growth.
There are significant benefits to hiring an outsourced HR company, including;
- Management will gain meaningful hours back in their day when not burdened with payroll, benefits, and administrative paperwork
- The company will be continuously up to date with compliance regulations
- Employees will be more excited about your company’s benefits packages
- The money you will save will be reallocated to core business activities
In this post, we’ll dive into the four key reasons that you should hire an outsourced HR firm today.
1. Create More Time for Leadership Team
Regardless of company size, there will always be a need for human resources. On average, a small business owner spends up to 25 percent of their time on employee-related paperwork – and that’s just the paperwork. Other HR activities include benefits and compensation, training, compliance, employee engagement, and the entire hiring process – to name only a few!
As a business owner, you should be devoting this valuable time to driving business goals and strategy. However, not every company is going to be in a position where they can hire a whole team of HR staff. An outsourced HR firm can be extremely valuable in this situation by managing a vast range of tasks for you – everything from benefit plan management to compliance training.
Even if you are a larger organization, and you already have an internal HR team, outsourcing can be beneficial for supporting and filling in the gaps for the internal team during the busier times of the year. Everyone can always benefit from professional HR expertise. You can also outsource an HR team to help with one-off projects such as job description creation and review, compensation and benefits analysis, and records and compliance audits.
2. Ensure Compliance
Federal, state, and local employment and labor laws are constantly evolving and can be extremely difficult for business owners to keep up with. There are always new revisions and updates around hiring laws, medical insurance claims, and benefit regulations. There are regularly new trainings on harassment, discrimination, and diversity. Falling behind on the latest policies can result in employee frustrations, complaints, and even lawsuits.
Outsourced HR firms have the best resources and talent available to consistently stay on top of the most recent federal and state employment regulations, so you don’t have to. They will work with you to develop and execute plans to ensure employees and leadership are compliant with all government and company policies and procedures.
Also, it can be helpful to have experienced HR support on standby to help you navigate unforeseen incidents such as harassment claims or EEOC complaints that need to be handled in a very timely and particular method.
3. Retain Top Talent
Your talent is your greatest asset – and can easily slip through your fingers if you are not careful. In order to differentiate from competitors when attracting new talent and retaining top employees, it is essential to be strategic when choosing your employee benefit plans.
Health insurance is only the tip of the iceberg in benefit offerings, and more and more companies have begun offering unique new benefit options to entice top talent. These include remote work, flexible work hours, tuition assistance, and enhanced parental leave.
For a competitive edge, hire an outsourced HR firm to perform an audit on your current benefits packages. This insight will show you how your offerings stack up against competitor’s packages, as well as how they match with the needs of your employees. Experienced benefits professionals will also review your current insurance vendor contracts and identify ways to cut costs and save you more money.
After reviewing your current plan, your outsourced HR firm will work with you to create a new benefits strategy that is both competitive for new candidates and attractive to current employees. You can even employ your outsourced HR firm to deploy the plan, review it with employees, and assist in the smooth implementation of any changes.
4. Save Costs
HR services are already expensive. In fact, the Kaiser Family Foundation Employer Health Benefits Survey found that average family health insurance premiums have grown twice as fast as wages and three times as quick as inflation. Performing HR services in-house dramatically increases the expense because, in addition to a skilled team and office space, you also need special HR software and technology.
With an outsourced HR firm, you have a skilled and highly-qualified team at your disposal. They are likely to be using the latest and most efficient technology that will save you time and money by streamlining otherwise time-consuming tasks such as payroll, benefits, and compliance. This efficiency will help to increase your margins and maintain profitability.
Hire an Outsourced HR Firm Today
It never hurts to have a powerful team of focused professionals on your side. Whether you are a small, mid-sized or large organization, hiring an outsourced HR firm will give you more freedom to focus on your business, guarantee you remain compliant, provide you a competitive edge with employees, and cut your expenses.
With over 50 years of HR experience, Your HR Partner is the top outsourced HR firm in the Dallas, Texas area. We have diverse experience across industries including healthcare, IT, call center, hospitality, restaurant, retail, light industrial, staffing agencies, and more.
Talk to us today, and we’ll create a powerful, dynamic plan for you to reach essential growth goals, save valuable resources, and improve the overall employee experience.