3 Unknown Benefits of Human Resources Outsourcing | CPEhr

There are many reasons that companies choose to outsource their HR functions rather than maintaining a standard HR software program in-house. HR outsourcing ? especially for small businesses with limited administrative personnel ? can reduce your business?s payroll costs while saving time you can put towards other tasks.

However, outsourcing your HR comes with several more advantages than just making payroll simpler. It allows you to offer better and more extensive benefits packages to your employees. It also provides stability and continuity of processes in the event of high employee turnover or managerial upheaval. Lastly, outsourcing enables you to pick and choose which HR processes to outsource and keep in-house, providing you with more the same control and flexibility you might have with a standard HR program, and much more.

1. Health Insurance and Employee Benefits

When you outsource your employee benefits management to an HR firm, you can provide your employees with better compensation and benefits packages than if you were to manage it all on your own.

Your business may have only 10 employees, but your HR firm services hundreds or even thousands of workers. Therefore, it can negotiate for lower group rates and offer lower premiums than your small business can.

• With better health insurance and other benefits, your employees are healthier and more productive.
• When you are able to compensation package that is comparable to those offered by larger companies, your business can remain competitive in the quest for the best employees on the market.
• When it comes to workers? compensation and employee liability insurance, your HR outsourcing firm finds it easier to stay in compliance with laws and regulations as they are updated or changed. Again, because of the size of the HR firm, it can negotiate for lower rates and premiums and passes those savings on to your business.

2. Continuity and Security

When you manage payroll and HR tasks within your business, one or two individuals may be in charge of the entire process ? and they may be the only ones in the company who understand how that process works.

This puts your business at a severe disadvantage. Should those employees leave without training a replacement, you could end up scrambling to learn and operate your payroll system on the fly the day that payroll is due ? and making costly mistakes in the meantime.

• When you outsource your HR functions, you could replace some of your company?s payroll staff without experiencing any disruption in payroll or benefits allocation.
• With your employee information managed and stored offsite by an HR firm with access to the best security and training, you don?t have to worry about sensitive personnel information falling into the wrong hands. If you?re forced to fire a disgruntled employee, you can rest assured that they?aren?t?leaving with a list of everyone?s social security numbers.

3. Flexibility and Control

HR operations encompass a wide variety of tasks and processes: payroll, benefits, attendance, recruitment, and hiring all fall under the purview of HR administrators. It is entirely your prerogative which of these functions you outsource to an HR firm.

You can outsource payroll while keeping recruitment in-house, or vice-versa. You can farm these tasks out to several different specialized companies, or hire one firm to manage them all.

• This flexibility enables you to maintain or relinquish control of tasks in whatever manner best fits your company.
• You can save money by comparing the costs and values of the wide range of outsourcing choices available to you.

Along with letting you cut costs while accessing professional HR expertise, HR firms can help fill a need in your business ? for better security, better benefits, or better management of myriad processes and tasks.

Guest post: Megan Webb-Morgan is a web content writer for ResourceNation. She writes about small business, focusing on topics such as business sales.

Source: http://www.cpehr.com/blog/3-unknown-benefits-of-human-resources-outsourcing.html

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