When trying to grow your business, keeping costs down are a major focus. A full HR department or dedicated HR staff can be too costly for a small or medium sized business to afford, but do-it-yourself HR management can be time-consuming; and costly in a different kind of way. If a mistake is made in HR management, it can lead to costly fines, penalties or lawsuits for the employer.
HR Outsourcing through a Professional Employer Organization (PEO) is one way that business owners can relieve themselves from administrative burden and improve the growth of their business. Statistics show that small businesses who work with a PEO grow 7% to 9% faster than businesses who don’t. Below are five ways HR outsourcing helps your small business grow.
- No More Time-Consuming and Confusing Paperwork
When new employees are being on-boarded, it usually means filling out lots of forms and other miscellaneous paperwork. When you outsource this HR responsibility to a provider that can incorporate a Human Resources Information System (HRIS) into your workplace, the endless forms are a thing of the past. The HRIS system automates and streamlines a lot of HR processes including on-boarding, time and attendance and time off requests, allowing you to focus more time on growing your business and less time on shuffling paper.
- HR Expertise
A growing business needs expert support in areas of employee relations and management. It’s not a matter of if an HR problem will arise that you cannot handle on your own – it’s a matter of when. Most internal human resources personnel are generalists and may not have the expertise that a human resource firm can offer in the face of a complicated HR issue. A PEO provider can partner your business with a dedicated HR representative who can understand your business’s unique needs and offer creative solutions and expert advice.
- A Dedicated Partner to Your Business
A dedicated HR partner is a valuable asset to a business. They take time to learn the “ins” and “outs” so that they can help implement policies and procedures to keep your employees safe and productive and develop a company handbook that will outline simple HR solutions for everyday workplace interactions. Your HR partner will also be available when you need them; by phone, email, or in person, depending on your level of service.
- Payroll and Deductions Made Easy
Calculating benefits deductions and payroll taxes can be difficult, and a mistake in this area can result in fines, penalties or worse. An HR outsourcing firm handles this for you, along with the associated administration of employee record keeping and reporting and W-2 forms as well. All of this is typically automated through the HRIS system, with the provider ensuring everything is compliant.
- Access to Better Benefits
Employee turnover is costly, but having quality benefits is a great way to help increase retention. Outsourcing firms, like Emplicity, offer solutions that include benefits administration. Your company will gain access to large-group platform benefits that allow you to remain competitive as an employer without the headaches of paperwork and keeping up on government regulations.
Have an HR Question?
If you have any questions about this article or HR Outsourcing & PEO in general, let us know:
Since 1995, Emplicity has provided a smarter, more secure, and integrated platform of employer services to its 300 business clients and their 8,500 employees. As a Professional Employer Organization, or PEO, the California-based HR outsourcing firm simplifies the compliance, administration, and support businesses need in the areas of employee benefits, payroll, and human resources technology.
NOTICE: Emplicity provides HR advice and recommendations. Information provided by Emplicity is not intended as a substitute for employment law counsel. At no time will Emplicity have the authority or right to make decisions on behalf of its clients.