HR Outsourcing Services: Why They Are the Right Choice for Many Small Businesses

Many companies are nervous to outsource human resources because human resources often deal with issues very close to the office. If someone was having a problem at work, human resources would need to be there to take action. However, although it may be wise to have one human resources person in-house, this profession does much more than simply listen to employees’ problems. These professionals know that their job consists of maintaining files and records, dealing with legal matters, and employee payroll/tax filing and benefits. In the end, most of these tasks can be conquered through HR outsourcing services.

Businesses that take advantage of HR outsourcing services receive many benefits that others sacrifice by trying to hire and create a new HR staff. Unfortunately, many companies are scared of HR outsourcing services for a few different reasons:

  • Doubt: HR outsourcing isn’t widely discussed, and on the surface outsourcing something so important does seem risky. This causes doubt amongst many.
  • Control: It’s hard to feel in control when matters involving your company are not in the office and you do not know what decisions are being made at all times.
  • Employee Opinions: Being that HR is there for the employees, it could make employees unhappy to see that the department there for them isn’t even in the office.

These are the most common excuses that people use when they decide against HR outsourcing services, but most rely solely on doubt. When you really look at some of the benefits that HR outsourcing services can offer, you will find that this is the best option for many small businesses, and these doubts are just that—doubts and not facts.

HR Outsourcing Services That Will Help Your Company Run Smoothly

For those who are unfamiliar, HR outsourcing services refers to hiring a third party to take care of your companies HR needs. When you outsource any aspect of business, the agency that provides you services generally works with other companies providing the same services. In other words, that company will be a company comprised almost entirely of HR professionals.

Consider below some of the benefits to HR outsourcing:

1. Effectiveness – Hiring an HR outsourcing company means that your HR professionals will be able to help each other and focus on strictly HR. An in-house HR professional generally has to work either alone or with one other person and juggle different office tasks. By outsourcing HR, you know you are getting a group of professionals.

2. Cost – It is much more cost effective to outsource HR services. With in-house professionals, you need to provide office supplies and a space as well as pay a usually-hefty salary.  Hiring an outsourcing company usually allows a company flexibility when it comes to payment based on the needs of the company. As a whole, it is usually less expensive than hiring in-house.

3. Risk – The risk of finding yourself in some sort of lawsuit is actually lessened with HR outsourcing services. Most outsourcing companies have someone dedicated to watching any changes in workplace regulations or federal and state employment laws. This can be a daunting tasks and it is easy to miss if you are the lone HR in-house representative. Working with an agency will make sure you don’t get in trouble because something changed and you were unaware.

It is also worth noting that you must find a good HR outsourcing company in order to earn these benefits. Some agencies do take advantage of being far away, so it is up to the company manager to meet face to face with these different companies, discuss the services the company can offer, and talk with those who have used the company in the past. If this can all be done correctly, HR outsourcing services can be a great option.

Have you ever working with HR outsourcing services? What was your experience? Please let us know in the comments!

Amanda DiSilvestro is a writer on topics ranging from social media to business promotional items. She writes for an online resource that gives advice to small businesses and entrepreneurs for the leading business directory,

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One Response to "HR Outsourcing Services: Why They Are the Right Choice for Many Small Businesses"

  1. Trinet says:

    For my small business, I’ve found that utilizing a HR outsourcing company is beneficial. For many reasons, such as keeping up with files and records, legal matters, and employee payroll and tax filing as well as employee benefits. One that I’ve found to be a good HR outsourcing company:

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