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10 Things to Know About HR Outsourcing

Outsourcing your business' Human Resource responsibilities can be a smart decision. But as with anything in life or business, the more you know about it the better.

Written By: Editorial Staff

Outsourcing your business' Human Resource responsibilities can be a smart decision. But as with anything in life or business, the more you know about it the better. Here are ten things you should know about third party HR outsourcing and what it can mean to your business.

1. Outsourcing your HR needs is gaining popularity fast

Although HR got a late start behind bookkeeping, customer support and other popular outsourced tasks, more and more companies are turning to third-party HR providers as a way to ease the administrative burden of day-to-day human resources responsibilities.

2. You'll get HR support only when it's needed

Many small to medium sized companies need their Human Resources department only from time to time. The solution is to outsource your HR needs to an expert third party when (and only when) you need something done.

3. You won't have to pay a salaried employee

Why pay a full-time HR person a big salary for 12 months a year, when you can bring in an outsourced HR professional on a per project basis. The resulting savings can be huge - as you knock a salary (and the accompanying benefits and training costs) off the books.

4. Human Resource experts make sure your business stays compliant

When you outsource your HR needs to a third party, they will make sure that all your payroll taxes and other vital, sensitive transactions are all kept compliant with the laws of the state and the Federal Government.

5. HR companies can handle payroll for you

Ask any small business owner about payroll and they'll immediately start rubbing their head. Nobody likes to do payroll. When you outsource your HR, you get a helping hand to crunch all the numbers, calculate the taxes and even write the checks.

6. HR companies can take over general administrative work

Chances are, you've got taxes to file or benefits programs to administer. An HR company can take the paperwork off your plate for these, and other time-intensive projects, that you just don't have the bandwidth to work on yourself.

7. HR companies can help you recruit new talent

One of the most valuable services an HR company can provide is recruiting and hiring top talent for your organization. A good HR firm will work in concert with you to identify and locate the job candidates you are seeking.

8. HR companies come in all shapes and sizes

While there are many outstanding HR providers that do it all, many have specific areas of expertise, including taxes, executive-level/C-Suite hiring and more! Determine what HR services you need most before contacting an outsourcing provider.

9. Outsourcing your HR lets you focus on what you do best

A Human Resources company can handle so much paperwork for you that you will be able to focus on growing your business without the headaches of taxes, payroll, or hiring.

10. HR companies give you all the advantages that bigger companies enjoy

Whether it's having your own recruiting expert or enjoying better insurance rates as part of a larger network, HR companies help you play with the "big boys" while still maintaining costs.


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