Outsourcing HR functions is an increasingly common way that businesses have been using to get a competitive edge. HR functions, like accounting, payroll, and taxes, can take two full work weeks away from members of your staff over the course of a year. Using the services provided by a professional employer organization (PEO) is one way to reclaim that time.
If you’re considering your options, you may be curious about which HR functions can be outsourced and which can’t. Most HR functions can be outsourced. But there is a human element that you’ll want to keep in-house.
When you’re looking to find your next, or first, PEO partner, NetPEO is ready to assist. By calling (678) 376-1212 or entering your preferred contact information on the sidebar, you can get the expertise of an experienced PEO broker to simplify your HR outsourcing search.
HR Functions That Can Be Outsourced
Most small business owners didn’t start their company to be bogged down by HR paperwork. Fortunately, it’s the paperwork aspect of HR that can be largely outsourced. Many of the most time-consuming aspects can be entrusted to a PEO partner. Below is a selection of the most common HR functions that get outsourced.
Processing Payroll
One of the typical HR functions to get outsourced is payroll administration. When your business is small, payroll can be relatively quick. This is especially true if your employees don’t have special deductions that need to be accounted for when you’re trying to cut their checks. However, as your business grows, more time will have to be dedicated to payroll.
Outsourcing some or all your payroll administration can save you loads of time. PEOs have many types of services, from helping you simplify the paperwork by giving you access to top-tier software to managing the entire process for you.
Benefits Administration
Like payroll, handling all aspects of your employees’ benefits package can be laborious. Ensuring that everyone has their health insurance, sick time, vacation days, and any other benefits you provide can end up taking as much time as payroll, particularly when a problem arises.
You’ll be thankful to be able to outsource your benefits administration. If you choose to partner with a PEO, you and your employees will be able to enjoy additional benefits. As the employer of record for your employees, the PEO will include your workers in their benefits package. This means access to better health insurance, new retirement options, and more. An added bonus is that a better benefits package is a great way to retain employees.
Legal Compliance
Are you familiar with the intricacies of the Fair Labor Standards Act (FLSA) or the specific requirements your business must meet under the Affordable Care Act? There is a wide range of federal, state, and local laws that your business must follow. A failure to follow these rules can cost your business thousands of dollars in fines and countless hours in legal battles.
If your HR functions are largely outsourced to a PEO partner, you’re must more likely to find yourself in compliance. The HR professionals at your PEO will be responsible for maintaining your business’s compliance, taking that pressure off you. Workers’ compensation claims can also be managed by your PEO, reducing your stress that much farther.
HR Functions That Can’t Be Outsourced
HR is about helping the people who work for you. The HR functions that can’t be outsourced are the ones that require person-to-person interaction. These might include:
- Conflict de-escalation/resolution
- Supporting employees through difficult times
- Listening to employee needs
- Deciding when it’s time to let an employee go
- Setting office culture
You want someone in-house who can deal with the human aspect of employee management. With HR outsourcing, that can leave you with more time to handle that yourself.
HR Outsourcing Can Lend a Hand
Your PEO partner may be able to assist with these functions, even if they’re still handled on your end. For example, conflict resolution should have a set method in place before a problem arises. Deciding what that is a question of office culture, but it can also be codified as well. Your PEO partner could help you add a section to an employee handbook about conflict resolution, so everyone has an idea of what to expect when a difficult situation arises.
What NetPEO Can Do to Help You Find Your Next PEO Partner
When you’re ready to outsource your HR functions, you’ll want to find a PEO that offers the services you need in a way that works for your company. Not all PEOs are the same, but there could be many that fit your business needs.
Finding the right one is easier when you have an expert on your side. Call (678) 376-1212 today to speak with a PEO broker for free about your business needs.
