5 Telling Indicators Showing Why It's Time to Outsource Your HR Needs

Tuesday, 11th Feb, 2020

 

The area of human resources continually evolves and is becoming increasingly more complex. Most companies struggle to find the right balance between efficiency and cost.

 

If you feel stretched thin managing employee hiring, administering a benefits package, ensuring compliance with federal, state, and local laws and regulations, in addition to handling payroll, you really need to start considering help.

 

But how do you really know when outsourcing can help your business save money and time through better processes?

 

Your firm may be ready to seek HR help when:

• 1. Your HR team's entire focus is solely administrative — When HR staff spends most of the week on tasks such as data input or forms processing, this may be a signal that it’s time to look at outsourcing. Limiting your team to predominately administrative work takes members' focus off strategic contributions.

 

• 2. Your HR system doesn't support mobility — with many firms allowing staff to work remotely or telecommute, mobility for key HR services such as time and attendance reporting is essential. Cloud-based solutions that support off-site access to the company database are becoming the norm. If your employees can't complete essential functions from their smartphones or tablets, your HR technology may need an update.
  
  
• 3. HR is becoming a cost center — Inefficient processes and excess administrative work can require additional resources to support HR without generating the appropriate results. Ideally, your HR team should function as a key strategic asset, not a liability. It may be time to ask yourself whether external expertise can help.
  
  
  
• 4. You're struggling to keep up with regulatory and statutory requirements — Businesses of any size may struggle with compliance. Your HR team needs to understand the current federal, state, and local laws and regulations that may affect your business. Your infrastructure must support data collection and reporting. Companies lacking in-house expertise may want to outsource their HR operations. Having HR Consultants available can help you comply with applicable laws and regulations to help protect you from costly penalties and fees.
  
  
  
• 5. You are losing your employees so easily: As recruiting has become more and more competitive, turnover has also increased as employees pursue new opportunities, taking their experience and skills with them. The reality is that, for most companies, HR is treated as an afterthought and is generally understaffed and over-tasked, which can lead to missing important things that should have been noticed and pegged early. This is where outsourcing can be one of your most powerful HR tools.
  
  

Awareness of your business's current situation can help you recognize the right time to support growth and operations by partnering with a third party. Companies seeking to improve their performance may reap rewards when they let experts manage compliance, employee benefits, and payroll processing.

 

Benefits of outsourcing HR

It's worth noting that the 2019 Paychex Pulse of HR Survey found that the five most-cited HR challenges were:

 

• - Keeping up with laws and regulations (38 percent);
• - Tracking employees' time (38 percent);
• - Complying with laws and regulations (35 percent);
• - Offering competitive benefits (33 percent); and
• - Retaining talent (31 percent).

 

Dedicated Human Capital Management firms can help your company with each of these areas. We are also be able to assist with retirement planning, executive development and coaching, compensation plan administration, risk management, and training programs. By shifting your focus from administrative tasks to strategic efforts for the company's mission, your HR team can make broader, more lasting contributions.

 

Reasons why you should outsource your HR include:

 

• 1.   Saving money by reducing operating expenses;
• 2.   Controlling risk and improving compliance;
• 3.   Gaining greater HR expertise;
• 4.   Streamlining HR functions;
• 5.   Obtaining services the organization couldn’t provide otherwise;
• 6.   Allowing the company to focus on its core business;
• 7.   Reducing HR administrative expenses;
• 8.   Improving service delivery;
• 9.   Allowing HR staff to focus more on strategy; and
• 10. Making up for the lack of in-house expertise.

 

Among the human resource functions, Ascentech as an outside HR administrator can handle in full or in part are:

• 1.   Background checks;
• 2.   Payroll processing;
• 3.   Workers' compensation;
• 4.   Employee assistance and counseling services;
• 5.   Health care benefits administration;
• 6.   Retirement benefits administration.

 

 

CONCLUSION

With so much at stake in the realm of Human Resources, it makes good business sense to outsource your HR in 2020.

 

When a great HR partner takes control, your business can become more sharply focused on the expertise and products you provide, all while saving time, money, and overall improving your organization.