As a small or mid-sized business leader, you may find it hard to keep up with the latest employment laws, trends, and related matters. You’re not alone. Recent research has shown that less than a third of small companies have even a single employee dedicated solely to HR. Yet, whether or not you can afford this luxury, it’s your responsibility to manage this critical function effectively and efficiently.
What’s the Best Outsourcing Solution?
In many cases, the answer lies in outsourcing. The Society for Human Resource Management (SHRM) reports that more than half of all HR professionals have taken advantage of outsourced HR. Here are some of the leading reasons why:
Costs, including payroll and tax processing and workers’ compensation, unemployment, and group health insurance, can drastically affect your profitability. And if something goes wrong, the result can be a potentially devastating fine, penalty, or litigation.
Do the math. How many hours do you spend on HR work? Labor costs account for one of the largest operating expenses in any business. Beyond payroll and tax overhead, consider the expenses related to insurance premiums, recruiting fees, pay processing, and legal costs. Outsourcing helps you spend less time on paperwork and more time dedicated to improving the effectiveness of your workforce.
Businesses face myriad risks, including workers’ compensation claims and employee misclassification and litigation. Excessive or mismanaged claims and lawsuits can result in lost time and money – and potential hits to employee morale that may be equally or more costly. Outsourcing helps ensure that you stay compliant with laws and regulations and protect your business assets.
Benefit from enhanced security. Even with long-time trusted employees, there may be a risk of identity theft, embezzlement, or tampering with company files. And, there’s an inherent risk when using in-house software: How safe and secure is data on your company server or network? Your outsource partner can spot and alert any signs of problems and offer a safe haven for confidential data.
You’re the best at what you – and your business – does. That doesn’t make you an expert in payroll, taxes, or HR. And that’s okay. By outsourcing, you have access to a team of specialists who stay current and can administer all aspects of your personnel management needs – from continually changing regulations to benefits, deductions, workers’ comp, and data security.
Areas of expertise that come with outsourcing include complete payroll processing, direct deposit, FICA, FUTA and SUTA payment and filings, new hire reporting and immigration verification, tax lien processing, garnishments, HRIS and employee file management, and employment and wage verifications.
Want to know more about Outsourcing your HR functions?
As a professional employer organization (PEO), Lyons HR functions like an off-site HR department for small to mid-sized businesses. Our state-of-the-art technology and expert services work together to manage your HR tasks efficiently, so you can concentrate on business growth. Contact us today to learn more.