All this talk about HR outsourcing and how much it can benefit your business, but how does it work? What does HR outsourcing entail? HR outsourcing seems complicated, but breaking it down into its components makes it easier to understand.
In the simplest terms, HR outsourcing is when a business contracts a third party to handle all of the business’s HR needs. In other words, you are getting another company to take care of your HR duties for you. There are many pros to outsourcing, and there are many different ways outsourcing gets accomplished. Hiring a third party to handle HR may sound expensive, but a quality professional employer organization (PEO) like NetPEO can work with any budget and provide excellent service. Outsourcing is shown to help you save money through streamlining your HR and reducing waste of time and resources.
If you need to outsource your HR, consider NetPEO. We are industry leaders with decades of experience. We carry the skill to work with any business in any industry, no matter how small. Our adaptability allows us to understand your business’ needs and give you top quality HR services to fit any budget. NetPEO cares about its clients and the businesses we help. Call us at (678) 376-1212 for a free quote.
How HR Outsourcing Works
HR outsourcing is based on the needs of your company. You can choose to keep some things internal while outsourcing the rest. This flexibility will make each case different, but usually, HR outsourcing entails the following:
- Compliance with laws and regulations
- Payroll
- Assistance with employee management
HR duties and legal compliance go hand-in-hand. There are many laws and regulations to follow. Not following these rules set in place can often lead to punishment such as fines and penalties. Each industry and business type needs to follow different sets of rules set before them by the federal, state, and local governments. Instead of resorting to Nolo, HR outsourcing aims to take care of these things for you. Making sure that all the criteria and standards are met can be extremely difficult. Outsourcing helps eliminate legal grey areas and helps your business comply with the law.
Payroll is one thing in business that can take up a lot of your time and energy. Payroll is a part of HR outsourcing. Finding yourself stuck for hours on end every month doing payroll is wasteful for your business. Instead of hiring new employees and investing in hours of training, outsourcing can provide a more economical choice that completes payroll accurately and efficiently. Payroll mistakes can also be detrimental as errors, and accidental non-compliance can lead to penalties and other infractions.
Employee management is more than just firing and disciplining employees. Many things entail employee management that is important to running a good business.
- Creating employee handbooks compliant with Department of Labor (DOL) guidelines
- Recruiting new employees
- Handling employee benefits
If you need help with the items listed above, then you should seek out a PEO for assistance. Outsourcing HR through a PEO will provide you with assistance in onboarding and interviewing new candidates and provide comprehensive clerical and administrative management of employee benefits.
Things HR Can’t Outsource
HR outsourcing is versatile, but there are some things that you cannot outsource. They are:
- Company culture
- Conflict resolution
- Emotional support
Company culture is essential. Keeping your employees motivated and happy means providing them with a fair, fun, and compassionate work environment. Culture needs to be created internally with employees and upper management together. Outsourcing HR to do this is impossible as it would not be genuine and meaningful camaraderie in the workplace. When you outsource HR, you are outsourcing mainly the logistical side of things. Do not use HR outsourcing as a means to neglect the more emotional side.
Conflict resolution and emotional support should be done in-house. Technically, outsourced HR could provide these things, but it would feel disingenuous and lack the actual empathy needed to handle these situations. Conflict resolution and emotional support are things best done in person or face-to-face. Being there for your employees in their times of need is critical. Monitoring their performance and ensuring they are at their best is something only a manager present can do. HR outsourcing is excellent and saves you money, but it cannot help your employees when there are hard times within the business.
Let HR Outsourcing Lend You a Hand
HR outsourcing saves you time and money. Hiring and training new employees can be costly, sometimes costing thousands of dollars. Not only that but getting benefits for new and existing employees is a costly endeavor as well. Outsourced HR through a PEO streamlines HR processes and can get you cheaper rates for benefits, lower onboarding costs for new hires, accurate record-keeping and data entry, and reduced spending on salaries. There is no need to hire an entire HR department when you can outsource its duties instead and save money.
If you find that your business is struggling to manage its HR duties efficiently, it may be time to outsource some or all of its duties. We are incredibly flexible and work with all business sizes in any industry. Do not let yourself drown in an administrative bog. We can handle all the grunt work for your business’s HR. Let us take that weight off of your shoulders.
With decades of experience and high client satisfaction, we are dedicated to assisting businesses with their HR needs. NetPEO takes pride in its high client retention rate and our mission to be consistently excellent in everything we do. Call us today at (678) 376-1212 and talk to one of our representatives today.
