Any business with more than one employee starts to develop HR needs, and the bigger the company the more HR related work is generated. This involves a wide range of tasks including hiring (and firing), managing payroll and taxes, training, creating work rosters and managing vacation requests, dealing with sickness and absences, and much more besides.
This is a wide range of tasks for one person to deal with, so for a thriving business with one owner outsourcing some or all HR tasks makes good business sense. However, it’s not uncommon for larger companies to choose the same route rather than maintain a dedicated in-house HR section. Here we look at the key reasons why outsourcing your HR department is a really worthwhile thing to do.
Benefit 1 – It cuts costs
Outsourcing your HR department reduces cost in several ways. When there is no need to provide office space to house HR staff then smaller, and cheaper, premises can help cut expenses dramatically. The same benefit applies to fast-growing companies, which can avoid having to relocate to larger premises by outsourcing this aspect of the business.
Another key cost cutter comes from the savings on HR staff costs. Outsourcing means you can target particular workers and harness their specific skills as and when you need them, rather than having to pay a regular salary to the same specialists who may then be generally under-utilized on a day to day basis. Businesses which are largely seasonal also benefit greatly from the opportunity to pick up the pace with HR during busy periods in the year, and then drop to a maintenance level when the quiet season arrives.
Benefit 2 – It increases efficiency
The most efficient way for a business to operate is for all members of staff to do what they are really good at, but in a smaller company it’s not uncommon for HR tasks to be undertaken by random workers or managers. This has a two-fold negative effect, as in most cases the person trying to cope with HR on top of their own workload is not properly qualified or knowledgeable enough to do it properly, and they are also compromising the time they can actually spend on the things they do which add value to the business.
If you’re interested in outsourcing this department of your business then head over to https://www.makaihr.com/. They’ll give you help and advice on doing so and make sure you find a solution that suits your business’s needs.
Benefit 3 – It reduces risks
There’s no room to make mistakes when it comes to employment and labor laws, and as these are subject to change on both a federal and state level, keeping up with things could almost become a full-time job in itself! Rather than exposing a business to the risk of costly mistakes, or even lawsuits, it makes sense to outsource HR to experts who are working exclusively in that field.
These three reasons outline the main benefits to a company of outsourcing their HR department work to trusted experts and specialists, and they are just as pertinent to a start-up company with a handful of employees as they are to those with a national profile and a four-figure workforce.