Traditionally, businesses manage organizations by allocating each management function to a specialized department. Thus, you will have a financial manager, a sales manager, a Human Resources manager, and so on. However, for many smaller organizations, having specialist in each of these positions proves impossible. Is HR outsourcing the solution?
When smaller businesses lack a qualified HR professional, they still need to perform all the many tasks involved in taking care of staff needs to meeting regulatory compliance requirements. As a result, they allocate these tasks to managers and clerks with other priorities. Just understanding their new duties takes time, and it is all too easy to omit important details.
In many instances, these managers and staff members end up with more questions than answers. Managers become frustrated, and without correct handling of HR matters, your staff becomes frustrated and demotivated. Business owners may find themselves exploring the idea of creating a dedicated HR department only to find that the cost to the business would be much too high.
Focusing on Core Strengths Thanks to HR Outsourcing
In most businesses, HR is very much a support function. That is to say, it does not directly add to your value creation process. However, without HR experts to support you, you will not be able to engage in value creation at all. Nevertheless, when managers who have value-adding tasks to oversee get an HR workload, they can no longer give core tasks their undivided attention. This cuts into the bottom line, affecting overall profitability.
Outsourcing HR to a PEO makes a great deal of sense in this scenario. It is like having an HR Department full of specialized employees at a fraction of the cost of an in-house HR department. Meanwhile, managers and staff are able to focus on their core tasks allowing them to optimize operational performance.
This factor alone provides a convincing argument in favor of outsourcing to a PEO, but it is by no means the only benefit of HR outsourcing.
A PEO Helps You to Attract and Retain the Best People
When outsourcing HR to a PEO, you make your organization a much more attractive career prospect for existing and prospective staff. Firstly, a PEO carries out all the necessary HR tasks efficiently and accurately. Secondly, and this is a big advantage, you can offer better benefits to employees. For example, if you are a small to medium enterprise providing some form of healthcare insurance as a benefit, you do not have much bargaining power with your provider. HR Outsourcing makes a lot of sense here.
However, as a Professional Employer Organization, your PEO is handling HR matters for a large number of people. That means more bargaining power and better deals. You could offer better benefits than you do at present and it would cost you less than it currently does. Being able to provide good benefits helps you to attract the best candidates for vacant positions. It also means that employees are less likely to move on in search of greener pastures.
HR Outsourcing Helps You with Regulatory Compliance
If you have been doing your own HR on the side while trying to run your business at the same time, you will know that there is a lot of paperwork to do. Then there are things that an employer can and cannot do according to employment law. Moreover, it is all too easy to fall afoul of a law even when you have the best intentions.
Your PEO is well versed with employment law. It will be there to take care of all the red tape on your behalf. PEOs take care of things like workers’ compensation after accidents. In addition, when you need a little extra advice, you have help and support on tap. These benefits add up to risk reduction, and reduced risk is something every business wants. Avoid potentially costly mistakes by making use of experienced professionals to ensure compliance. These are big benefits to HR Outsourcing.
HR Outsourcing Benefits in a Nutshell
To sum up, having a PEO on your side confers a number of benefits:
- Offer better health and retirement benefits
- Free up time to focus on your core strengths
- Get professional HR administration services
- Your PEO handles workers’ compensation
- Get and retain the best staff
- Be certain of regulatory compliance
- Get access to professionally compiled employee handbooks and other documents
- Have access to professional recruitment services
- HR professionals to give you advice on day to day issues
With all these benefits, you may be eager to do some HR Outsourcing and choose a PEO for your business. Which one will be the best fit, offer you the most relevant services, and give you the best cost savings? In addition, will they be your best choice a year, two years, three years down the line? That is where EasyPEO enters the picture.
Once we know your needs, we can match you up with the PEO organization that will suit your requirements best. Moreover, if you are already working with a PEO, we can help you evaluate your current service provider to see whether there is a better deal available. What’s more, EasyPEO does not simply make a recommendation and hand you off to that PEO. We assist in the interviewing and onboarding process. We also perform regular audits of your business to ensure that the PEO you are will is still the best fit for your business. You may upstaff, downsize, or open up additional offices/divisions. Your company’s needs are going to change, as is the marketplace. EasyPEO is with you through your entire journey.