Is your HR department overburdened with paperwork or overwhelmed trying to keep up with the latest legal and compliance requirements?
Is yours a small to midsized business that simply can’t justify the cost of a full-time HR staff on a year-round basis?
These are some of the leading reasons to consider outsourcing HR functions and in doing so, boost company productivity and growth. Since the 1970s, outsourcing has been an effective solution for an increasing number of companies. According to the Society for Human Resource Management (SHRM), the most common reason for businesses to outsource HR is to decrease labor and operating expenses. Other reasons include:
- Greater access to the specialized expertise provided by outsourcing partners.
- Better risk management and control over laws and regulations.
- Overall streamlining of business operations.
A Closer Look at the Benefits of Outsourcing
If you opt to outsource some or all of your HR functions, you can:
- Lower your costs: Additional industry research has shown that businesses with HR outsourcing grow 7 to 9 percent faster than those without it. They realize annual savings of 24 to 32 percent and have seen their HR administrative costs decrease by as much as $450 per employee.
- Negotiate better benefits package: Outsourcing not only saves you money, it also lowers the amount your employees need to spend on premiums, deductibles and other out-of-pocket expenses. And because they have group purchasing power, your outsourcing partner can empower you to offer benefits competitive with those offered by much larger employers.
- Manage your time more efficiently: If you don’t have to spend time on HR administrative tasks, you can devote it to strategic planning and running your business. With the right outsourcing agreement, you will still handle the most critical human capital and operational decisions. But, you can get rid of such “check the box” items as running payroll, cutting checks, reviewing and processing insurance claims, and navigating through benefits details.
- Access the latest knowledge and expertise: You started your business – or you’re involved at a high level – because you’re an expert in your chosen field and wanted to apply that knowledge to a product or service your customers need. Your plan was not to be caught up in dealing with routine but necessary HR administrative tasks. Your outsourcing partners are dedicated experts who have made it their life’s work to know the ins and outs of the HR industry.
Partner with a PEO Company in Nashville, TN!
If you’re considering outsourcing some or all of your HR functions, contact the Lyons HR team today. We’ll show you how to take advantage of all the benefits of outsourcing and set you up for long-term growth and advancement. Let’s talk about how we can work together to help your company succeed.