Why Should You Outsource?
What Is Outsourcing?
When you outsource, you pay a consultant to manage specific responsibilities instead of paying fulltime employees to do the work. If you have hired companies to manage payroll, accounting, computer repair or legal work, you are already outsourcing. The more specialized the work, the more outsourcing becomes a prudent choice.
Will I Save Money with Outsourcing?
Outsourced HR is almost always less expensive than an equivalent employee model. When you compare costs of outsourcing with an in-house HR effort, be sure to add in the HR manager’s salary, workers’ compensation, holiday and sick time pay, workspace, insurance costs, payroll taxes and pension, as well as recruitment, training and support.
Why Does Outsourcing Work for HR?
Human resource management and legal compliance have become very complicated and require ongoing training and a high level of expertise for good results. An outsourced consultant can update resources regularly and, because an outsourcer works for many clients, it also has experience and best practices proven through use in other companies.
Why Does Outsourcing Help with Objectivity?
Outsourcing the HR function creates decision making that is independent of employee factions and loyalties. It is one of the best ways to ensure confidential, fair treatment for employees and to make decisions in the best interests of the employer.
Does Outsourcing Reduce Employer Risk?
Yes. In smaller companies, it is often an office manager, if not the business owner, who completes the HR tasks despite having little or no HR training. Sometimes, important HR work is left undone due to lack of time or interest. This creates enormous financial and legal risk that is eliminated through use of a competent consultant.
How Does HR Outsourcing Promote Growth?
HR errors, regulatory fines, disciplinary problems and legal responses drain financial resources and management time from the business. HR outsourcing allows owners and executives to focus on what they do best – building their businesses!
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