Take A Load Off: What Outsourced Human Resources Can Do For Your Business

by | 27 Jun, 2017

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Human resources is the backbone that connects a company from top to bottom, and outsourcing HR is becoming increasingly popular. Small wonder: The affordability, accessibility, compatibility and expertise of HR outsourcing companies — and PEOs in particular — makes using them an easy choice for many New England businesses.

The Cost of HR

Human resources departments handle employee payroll, internal complaints, employee training, professional development and more, all of which are necessary to run a company, but none of which contribute to return on investment (ROI).

Putting an exact number on how much a human resources department costs is difficult. Staffing them often requires salaried employees, and yet any calculation has to take into account hundreds of soft costs in areas such as employee productivity, benefits and regulatory compliance.

Walking Side-by-Side With Your HR Partners

With dedicated specialists experienced in every aspect of HR, outsourcing companies bring a host of benefits and expertise to the table that an in-house team may not be able to match. These include:

    • Compliance: Any company of decent size will find itself subject to hundreds of labor laws, each of which has its own compliance framework and associated penalties. Business often struggle with the decision to invest in compliance ahead of time or pay penalties after violations are discovered. With an HR partner, not only does compliance implementation happen, but liability for non-compliance may be shifted off the company’s shoulders entirely.
    • Recruitment: Great employees make a great company. If your company is consistently onboarding less-than-top-notch employees, then improving its recruitment method should become a top priority. A dedicated recruitment outsourcing company screens employees with talent, culture and motivation in mind so that a great fit becomes the rule rather than the exception.
    • Training: Employee development ensures that skills stay sharp and employee value continues to grow, but designing truly effective training programs is critical to achieving desired results. HR outsourcers have dedicated personnel who design training materials tailored to fit your organization.
    • Expertise: No matter what your HR problem, the right guidance is only a phone call away. In many cases, HR outsourcing companies can provide consultation in specific  areas to eliminate the need for labor law expertise  — and they won’t charge you by the hour.

Wrangling HR Costs

Companies who outsource can better manage their HR expenses. That’s not just because such vendors offer end-to-end solutions at reasonable prices, but also because they are great at tying HR costs to company ROI.

Some direct benefits that companies who outsource HR can expect are:

  • Access to superior HR integration platforms
  • Greater focus on core competencies
  • Improved compliance records and elimination of potential  penalties
  • Happier employees with less employee turnover

Risk Transference: Out of Sight and Out of Mind

In many instances, HR outsourcing companies can lift the burden of liability off the backs of the businesses they serve. Companies must still contend with many liability issues, but even here, outsourced experts can help them through tough, legal issues.

Outsourcing HR at Your Company

If you’re still reticent about outsourcing your HR, know that businesses are free to decide their level of involvement. As your company continues to grow, your PEO will evolve with you to continue meeting your changing needs. Outsourcing doesn’t remove your authority; it strengthens you with the expertise and cutting edge technology to achieve your business objectives.

Outsourcing can save your business money, grow your workforce, meet your compliance needs, and provide the right advice exactly when you need it. Contact Navigate, New England’s premier PEO, to discuss your company’s future.

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Tom DiSilva
Tom DiSilva has been providing professional human resource services for over 30 years. As the CEO of Navigate PEO, he actively partners with organizations of all sizes in the Greater New England area and across the country to help their businesses grow. He has expertise in HR and Labor Management, offering guidance and support for key areas of business such as negotiations, operations management, employee coaching, and employee benefits design. . He is an active member of The Society for Human Resource Management (SHRM), The National Association of Professional Employer Organizations (NAPEO), Professional Association of Co-Employers (PACE), and The American Payroll Association (APA). He is deeply committed to giving back to the community both personally and through Navigate Cares, which provides support for several nonprofit organizations such as the USO, The Boys & Girls Club, and the 3Point Foundation.

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Disclaimer: this article does not represent expert advice and is provided for informational purposes. Please get in touch if you would like expert HR advice.