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HR Outsourcing Tips

If you run a small business, you may not have the resources to keep a full-time HR administrator on your staff. However, you still need certain human resources functions – like payroll and benefits – to be fulfilled regularly.  If you compare HR outsourcing with other options, you will find several benefits.

Instead of assigning another staff member to perform these tasks or taking them all on yourself, you can hire an outside firm to perform them on your behalf. That way, you only have HR when you need HR – and those functions are fulfilled by an experienced HR professional instead of someone unfamiliar with the role.

According to a Hewitt survey, “82 percent of responding companies indicated they have achieved the expected benefits from outsourcing.” HR management firms are well versed with current federal regulations, helping you stay compliant. Many HR companies offer payroll services in addition to the general administrative work normally associated with HR.  

Various types of HR services can also help you find and recruit better employees; they often have the resources and time  to find talented job candidates with the skill sets you are looking for.

HR Outsourcing Roles

Your HR provider can be involved in your business in a number of different ways. From HR strategist to PEO’s – find out which is best for your business in our Buyer’s Guide. Once decided, be sure to consider:

  • Your Needs: What kind of HRO solution will work best for your company? Do you need a completely outsourced solution, or just someone who can handle your payroll paperwork every month?
  • Lines of Communication: Be honest with your HR company about what you need and what you’re looking for so that they can best help you fulfill your business goals.
  • Monitor Work: Simply outsourcing your HR and forgetting about it isn’t enough. You need to keep any eye on how your HR service is doing. Are they hiring the right candidates? Are they successfully fulfilling the HR needs of your employees?

Questions to Ask Potential HR Companies

  • What size businesses do you work with (small businesses, medium, large corporations)?
  • Do you offer any payroll services?
  • What types of recruiting services do you offer?
  • What is your per project rate? What other costs are involved?
  • What industries have you worked in?

Make sure to compare your human resources service’s fees to what you would pay a normal full-salaried employee - complete with any benefits you might offer - to best assess whether HR outsourcing is a good option for you.

If you’re considering HR outsourcing, be sure to check out our quality, hand-picked vendors for payroll services  and PEO and employee leasing.