Small business owners are directly responsible for every aspect of their business, and ensuring they have the right team behind them is a critical component of success. One of the most important assets of a business is its people, and the field of human resources exists to ensure they are right for the job, ready to perform their best and can continue to serve as a valuable part of the business well into the future.
It is not surprising that so many companies outsource human resources given how important it is to an organization’s longevity and profitability.
Some businesses may have in-house human resources managers or teams, but their tasks are so complex that outside help is often needed. Other businesses fully outsource their entire human resources operations as they prefer to trust these important tasks to the most experienced and knowledgeable professionals possible.
Below are some of the top human resources functions that businesses should consider outsourcing.
Managing payroll is a very time-intensive part of a business with many opportunities to make mistakes. In addition, completing payroll correctly requires staying on top of and thoroughly understanding many constantly changing regulations. Failing to pay employees on time and in full can lead to dissatisfaction and turnover making this task highly essential.
Outsourced payroll processors can assist with paycheck distribution, payroll administration and direct deposits, along with documentation and reporting requirements such as preparing W2s and EEO-1 reports. They also offer tools that facilitate tracking data such as time off, attendance, unemployment claims and family and medical leave.
Human Resources Administration
Human resources responsibilities are not strictly transactional activities. HR also works to help an organization meet its strategic goals, particularly where its workforce is involved. Human resources consultants work to develop service plans and make recommendations related to procedures and policies, support new hires and assist with employee development.
They also offer online tools and resources that make HR administration easier and may include self-service portals that help employees manage benefits and other areas of interest on their own.
Effective recruitment requires significant knowledge of the latest market trends as well as current hiring laws. Outsourcing recruitment enables companies to access a higher-quality service that is provided by experts in the field, and it is typically more affordable than employing one or more staff to manage these functions in house.
Recruitment services may include tasks such as developing and carrying out application and interview procedures, collecting appropriate pools of talent, sorting through resumes to find suitable candidates, meeting with candidates to find the right fit for a role, conducting background screenings, and developing and implementing onboarding services.
Staying on top of the mandates, rules and regulations that govern doing business today can be overwhelming for small businesses. In addition to consuming a significant amount of time, ensuring full compliance is a major responsibility that many business owners are not prepared to manage independently.
By outsourcing compliance to human resources professionals, companies receive expert assistance in managing wage and hour disputes, company policies, workers compensation, employment law requirements, claims of harassment, safety programs and other areas of compliance.
Another area of business that many companies outsource to human resources professionals is benefits. This enables businesses to improve their benefits packages and provide a better and more comprehensive range of employee benefits and other services.
Moreover, there is a great degree of flexibility involved in outsourced benefit programs such as retirement benefits and insurance plans. An outsourcing company can administer all of the aspects involved in benefits plans, including enrollment, eligibility oversight, compliance, self-service tools and claims management.
Paying workers regularly and properly plays an important role in reducing turnover. Outsourced human resources professionals can help businesses to determine a competitive and fair compensation for every role in the organization and make suggestions regarding the best benefits to offer in order to attract new employees and retain top talent.
Ensuring that employees meet their established goals plays a crucial role in helping a business grow. Business owners often struggle to stay on top of performance management in the shuffle of the many other activities they must manage. Outsourced human resources professionals can provide employees with training and performance reviews to ensure everyone is working at the highest level possible.
Another area where an HR consulting firm can provide assistance is with drug testing. They can work with employees throughout the process, send samples to the lab for testing, and generate reports with the results. Should the results require termination or disciplinary action, they can handle these actions as well.
An important part of a productive business is happy and engaged employees. Outsourcing employee engagement can provide valuable insight into the aspects of the company culture that are working well and those where improvements can be made to ensure everyone feels their role is integral to the success of the business.
A third-party human resources expert can manage conflicts between employees and managers to navigate successful resolutions. They can serve as a mediator and modify company policies to better align them with employee concerns. They can also work to create a thorough and compliant employee handbook that organizes and explains the business’s policies and also outlines standards for work quality.
Outsourced human resources professionals can reduce the risks of worst-case scenarios in employee relations and discrimination matters. By entrusting risk management efforts to those with expertise in the field, companies can avoid workplace conflicts and reduce the likelihood of lawsuits.
Discuss Your Organization’s Needs with the Human Resources Consultants
Is your organization ready to outsource your human resources functions? Save time and money while ensuring compliance by capitalizing on the expertise of the human resources specialists at Business Benefits Group (BBG). Contact us to schedule your consultation today.