When you think about partnerships that can lead to your company’s growth, you may be picturing SEO experts, sales teams and customer acquisition strategists. But the reality is that HR outsourcing companies can also help your business grow.
Your team is one of the most integral drivers of your business’ growth, and to keep your staff engaged, productive and happy, you must deliver comprehensive onboarding, benefits, payroll and recruiting programs. If you fall short in these areas, your entire company could suffer. And if you run afoul of labor laws, your existence could be at risk. However, if you spend too much time on these tasks, you could be taking time away from responsibilities that could allow your business to hit its goals.
That’s where outsourcing comes in. These firms can take over your HR functions, from payroll processing and benefit plan management to recruiting, training and much more, leaving you to focus on growing the company. One example of this method is through PEO services.
Save Money, Boost Efficiency
To maintain compliance with labor/payroll laws and to ensure that staff members remain satisfied, some entrepreneurs hire full-time HR managers. However, that can be costly for small businesses. The average salary for an HR manager is $116,720, according to data from the U.S. Bureau of Labor Statistics, and that just includes one person’s pay.
On top of that, you’ll probably hire payroll processing team members, you’ll buy HR/benefits/payroll software, security programs to ensure employee data remains protected, office equipment for the HR staff and more. This can all add up to more than $250,000 annually — costs that you may not be able to afford as a burgeoning company.
Outsourcing your HR function can save you a considerable amount of money. The outsourced firm will typically either charge you a flat rate, or bill you based on a percentage of employee salaries, with the average monthly cost ranging from $45 to $1,500 a month, according to an estimate from Inc. Therefore, even on the higher end of that range, you’re looking at about $18,000 a year in outsourcing costs, versus a quarter of a million to keep the HR function in-house. You save money that can go to other parts of your business and spur growth, while also staying on the right side of labor/employment laws and keeping your team happy.
Productive Staffers Prompt Growth
One of the most important reasons to have a skilled HR team on your side is because it can lead to happier and more productive employees. Why is this so essential? Because unhappy employees tend to go look for other jobs, and it can cost your company twice the staffer’s salary to replace them, according to data from Gallup.
Instead of having to look for new staff members, your best bet is to retain the employees you already have on board. One way to do that is to offer them benefits that make them happy, ensure that their in-office relationships are going well, and keep them up to date on the latest offerings and regulations. Productive employees get more done, which means that your business grows faster if you keep your team happy.
Outsourced HR companies can not only keep your team happy, but they can also provide you with data-driven insights that allow you to gauge employee performance and satisfaction. You’ll be able to make swifter decisions on things like promotions, raises, bonuses and other factors with this information at your fingertips.
Maintain Top Technology
Part of your business’ growth is surely being powered by technological programs and insights, from sales platforms to marketing hubs. Why not use the same tech tools to run your HR and payroll departments, so you can stay on the cutting edge of the industry?
Doing this isn’t necessarily going to cost you anything extra, since outsourced HR services provide these tools for you. You can have access to a dedicated employee portal, top-notch payroll processing software and a human resources information system (HRIS) that can simplify business processes for both you and your employees. These systems are usually baked into an outsource firm’s offerings without requiring you to buy the tech or keep the programs updated.
Dedicate Your Time to Essential Tasks
Once you find the right outsourcing team that feels like a good fit for your organization, it’s time to allow them to focus on your HR, payroll, recruiting and onboarding management while you turn your attention back to growth strategies. Working with an HR outsourcing company is likely to give you the chance to focus on growth-generating tasks while ensuring that your team is covered, not just in terms of labor laws and regulations, but also in their overall happiness at work. Eventually, you may find that your partnership with an HR outsourcing service ends up being one of your most productive and lucrative decisions.