Why You Should Consider Outsourcing Your Human Resources
Your business’s most vital assets are your employees. Hiring highly-qualified talent is the key to increasing your business’s performance. At the same time, hiring employees can create a ton of new headaches and growing pains that can deter any business owner from going down that route. Outsourcing your human resources can help you achieve your growth goals while removing any of the headaches.
We help all our clients with the hiring and human resources needs. We understand how taking this step can save you money, protect you and allow you to focus on growing your business. HR outsourcing provides incredible benefits to business owners and we are going to look at them here. We will look at how you can save money, increase efficiency and reduce liabilities by working with a HR nearshoring firm like Bosque de Talentos.
Save Your Business More Money
The most obvious reason to consider human resources outsourcing is the savings it can bring your business. Outsourcing HR can help you reduce your costs in many different ways. HR overhead costs are a burden for many businesses and eat away at your margin. Working with HR services provider can lead to cost savings in these areas:
- Eliminate salaries of hiring human resources professionals in house
- Eliminate the cost of benefits including insurance, retirement, etc.
- Reduce the costs for hiring and training your employees by finding pre-qualified talent
- Eliminate the risk of penalties from federal, state and local regulators
- Increase the time you focus on revenue generating activities and reduce time spent on non-revenue generating activities like human resources.
The experience that a professional employer organization (PEO) or human resources outsourcing brings to the table can also benefit you in other ways. They may be able to provide you insight to new benefit strategies, other compliance issues and deductions that can save you more money. Working with a HR consulting or outsourcing company will benefit your business’s bottom – and top – line revenue.
Focus on Your Core Competencies
Working with an outsourced human resources company allows you to remove almost any role that is not integral to your business model. This means you can hire a team of HR specialists outside your business to make sure all your HR processes are as efficient as possible. It also means that you can help avoid time-consuming and costly mistakes that many small and medium sized businesses make when it comes to human resources.
Surveys have indicated that about 81% of small business owners handle human resources themselves. More than 30% of those business owners had no idea if they were doing things correctly either. You need specialized knowledge in the HR field to ensure every aspect is properly handled. Learning and implementing every aspect takes time away from improving the processes that make you money.
We believe focusing on your core competencies is what every business owner should do. Outsourcing your HR will remove any paperwork or other obstacle that distracts you from your core business processes.
Improve Compliance & Risk Management
Small and even medium sized businesses can struggle to maintain compliance with all applicable federal, state and local employment laws. Laws are constantly changing around hiring, insurance and benefits – and staying on top of the ball is a challenge. Using an outsourced HR company can help you to maintain full regulatory compliance and reduce your business’s liabilities.
HR outsourcing can help you maneuver through all the intricacies of labor laws, and keep up-to-date with coming changes that could impact your business. Failure to comply with regulations can lead to serious financial consequences that could sink your business. Minimizing your risk by outsourcing HR can eliminate your liabilities to fines, employee lawsuits and employee benefits – allowing you to stress less and focus on growth more.
Nearshoring to a qualified service provider can also protect you against any regulatory issues in foreign labor markets. It is possible to hire all of your employees through nearshoring companies – virtually eliminating any business risk in the United States and providing you with the flexibility to grow your business.
Increase Your Business’s Efficiency
Outsourcing your Human Resources functions can help your business run efficiently. Companies providing human resources outsourcing have the capabilities and technologies to handles these processes that are outside your core areas. Having your payroll, taxes, accounting and even employee onboarding handled by HR professionals can make processes seamless.
This means that you or your business managers will need to spend less time on paperwork and other tasks – allowing them to focus on their core responsibilities and processes more. There are many different tasks that HR most handle on a short-term and long-term basis which are just too time consuming and expensive to do in house. Outsourcing HR tasks to an experienced provider can help you continue to run your business lean.
Do you rely on an accountant or bookkeeper to provide you financial services? Working with an outsourced HR company is nearly identical in that they provide the services you need without you spending anytime on it.
Is Outsourcing Your Human Resources Right for You?
Human resources outsourcing can be a good option for small and medium-sized business owners. Focusing on your main product or service offering is the best way to guarantee that your business will achieve your goals. Eliminating processes or outsourcing them to capable agencies or specialists facilitates this and can provide you significant cost savings.
It is more possible than ever to run businesses lean with minimal hiring of employees. Nearshoring and outsourcing your human resources are two ways that you can continue to run lean. Our experience working with clients shows that it is possible to achieve 7-figure profits without doing any direct hiring for your business. Outsourcing in HR is one of the largest business trends in the 21st century, and we expect it to continue to grow in popularity as services and providers continue to improve.