TSP • @myTSPnet
In businesses with limited personnel, human resource tasks and roles may not always get the time and resources needed to be effective. When your company is stretched too thin in this area, you can lose out on attracting top talent or staying compliant with regulatory issues. The benefits of outsourcing human resources include addressing these concerns along with many other advantages.
RECOGNIZING THE BENEFITS OF OUTSOURCING HUMAN RESOURCES
HR outsourcing means turning to an experienced third-party provider for key HR functions. The solutions a partner provides can help your business with top talent recruiting and development, payroll and benefits administration, legislative compliance, and more. Small and mid-sized businesses benefit from access to a scalable HR solution and expert guidance from an HR professional.
- FREES UP TIME AND RESOURCES
Nearly 45% of small business owners spend at least one day a week on administrative HR paperwork functions. Think of all the things you could accomplish without these demands on your time. Outsourcing key HR functions gives you and your team more time to focus on other high-value tasks, like closing contracts or meeting with clients.
- ALLOWS YOU TO FOCUS ON PRODUCTIVITY
Outsourcing of any kind allows those within the organization to do what they do best by clearing the desk of menial or redundant tasks that take time away from profit-generating activities. Within the HR department, leaders and team members can focus on solutions that have a higher rate of return for the company, such as employee incentive programs or more in-depth training for struggling employees.
- IMPROVES REGULATORY COMPLIANCE
The laws and regulations concerning labor and employment change frequently, making it difficult for small and mid-sized businesses to stay up to date and compliant. As one of the benefits of outsourcing human resources, staying in compliance can save your business thousands of dollars and expensive legal action.
Noncompliance concerns with IT security and data breaches can cost hundreds of thousands of dollars in fines, along with additional costs from lawsuits, mandatory reporting procedures and fallout reputation management. HR outsourcing leaves compliance concerns to an HR partner with secure IT infrastructures and platforms to keep your data secure. They also have the most current information on regulatory requirements.
- ENHANCES RECRUITING EFFORTS
Handing HR activities in house can jeopardize your ability to attract and recruit top-level talent in your industry. Small business owners are competing with much larger organizations that dominate the field and have the benefit of brand recognition. Outsourcing makes recruitment more effective and cost-efficient thanks to the relationships and networking connections your HR provider already has in place.
HR agencies have access to jobseekers with a variety of educational and experience backgrounds who are actively seeking work suited to their abilities. The recruiters within an HR agency look at the job requirements and culture of your organization and make a custom match to the most talented candidates in their pool. Matching up skills to interests is vital to creating a long-term employment relationship.
- SAVES MONEY ON IN-HOUSE HR EFFORTS THAT ARE LESS EFFECTIVE
Another of the benefits of outsourcing human resources is the cost savings it brings. Every company wants to lower its operational costs to boost profit margins, and 64% of companies say saving money is a leading motivator to explore outsourcing options. Trying to handle all your HR needs in house could have you spending money on efforts that are only marginally productive when compared to the option of outsourcing.
When compared to the price of in-house HR administration, outsourcing costs can actually save your company between 20% to 30% each year. Lower expenses improve your bottom line and make it possible to divert money in the budget to hire more skilled talent for your sales and marketing teams or wherever else you need it.
- REDUCES TURNOVER RATES AND LOST PRODUCTIVITY
High turnover rates affect your company’s productivity and morale, and both can have a devastating impact on your company’s growth and financial health. When employees don’t feel fulfilled or are working in jobs or roles that don’t suit their skill level or interests, it can lead to dissatisfaction and lower productivity rates.
Outsourcing your recruiting and hiring to an HR specialist helps ensure you are making the right connections between talent and open positions. Your HR partner will also deliver a complete onboarding experience, clearly communicating the company policies, salary, benefits and other key information needed to get a new recruit started successfully. This can greatly reduce your turnover rates.
- PROVIDES A SCALABLE SOLUTION TO YOUR STAFFING NEEDS
Small and mid-size businesses often experience fluctuations in demand, making it difficult to accurately forecast labor expenses or needs. Outsourcing your HR needs presents a scalable solution for adding employees as needed to meet your business needs. You can work with the partner for part-time or temporary hires, helping you avoid overstaffing your business when demand slows down.
When you need to fill a labor shortage, one of the benefits of outsourcing human resources is a quick turnaround time for new employees. Rather than the time-consuming processes of combing through thousands of resumes, connecting with candidates and screening or interviewing prospects, your HR partner already has the connections with ideal candidates already screened and ready to work.
- OFFERS A COMPETITIVE EDGE IN THE MARKET
Outsourcing HR tasks allows you to compete more effectively in the market. Being able to attract the best talent in the industry will give your company an edge over the competition with regard to worker skill and performance. By reducing your operating costs, you have more money to spend on marketing, product development or other profit-generating ventures.
TAKE ADVANTAGE OF THE BENEFITS OF OUTSOURCING HUMAN RESOURCES
Take your business to the next level by reducing turnover, recruiting highly skilled talent and saving money on the administrative tasks of human resources. These are just some of the benefits of outsourcing your human resources functions to TSP. As your provider partner, we focus our efforts on advancing your business objectives, helping ensure your long-term business success. Contact us today for more information on our creative workforce solutions.