Proper employee management is necessary to improve the daily experiences of those you depend on to execute your daily business tasks. However, Human Resources is often seen as a burden to small businesses. Most small businesses are too small to need an in-house human resources department, while others are unable to afford a full-time Human Resources employee. In both these cases outsourcing Human Resources is advantageous. 

Human Resources

HR is the department within an organization responsible for tasks such as:
 

• Recruitment and Hiring

• Training and Development

• Employer-Employee Relations

• Maintain Company Culture

• Manage Employee Benefits

• Creating a Safe Work Environment

• Handle Disciplinary Actions

A high-performing human resource team is one of the most critical aspects of running a successful business. So, you should have a fully equipped team to handle these duties. That said, there are times when it makes more sense to outsource some or all your HR activities to experts. 

What is HR Outsourcing?

Human resource outsourcing is a contractual agreement between an organization and an external party. The organization transfers the responsibility and management of certain HR functions to the external party. Essentially, it is the act of subcontracting the HR roles to a third-party provider.

4 Reasons Small Business Owners Benefit from HR Outsourcing

1. Saving Money

Outsourcing HR allows companies to trim costs while still focusing on their core business and responsibilities. The estimated savings of outsourcing HR is 20 to 30 percent compared to having an in-hour HR department.  

2. Mitigating Legal Risks

Many small business owners do not recognize the legal responsibilities that come with an in-house HR department. By outsourcing this function, you can trust the HR consultant to focus on rules and regulation changes, ensuring that your company minimizes exposure to legal risks associated with employment law and HR practices.

3. It allows your Team to Focus on the Business
 

With the needs of HR taken care of, your team members can focus on their responsibilities and what they do best. Outsourcing HR allows business owners to spend more time and effort on the business, with the confidence that HR matters are handled correctly.

4. Your Compliance Could Improve

There are very specific laws and regulations that companies need to follow in the space of Human Resources. These laws and regulations not only vary at the state level, but they also vary due to the nature of the business and/or industry. Failing to comply with the laws can have serious and costly repercussions. By outsourcing HR, you have the peace of mind that your HR consultant is constantly ensuring that your company remains compliant.

For more on human resource outsourcing, visit Big Picture Results at our Vista, California office. Call (619) 940-7599 to schedule an appointment today.