What is HR Outsourcing? Which HR services can I outsource? Why would a company outsource its HR?
Outsourcing human resources are when a company contracts out projects or services to a third party who specializes in Human Resources. When a company wants human resource outsourcing (or HRO), they are contracting another company to take on certain aspects of the human resources functions of their business. Those duties can include things like onboarding, handbook development, compliance support, employee training, terminations, benefits, salary analysis, and much more. This may seem like a lot already, but it’s only a brief overview of the types of services and HR requirements that a business can outsource. Companies may look into human resources outsourcing for a variety of reasons. Maybe they only have ten employees and don’t yet need someone in the Human Resources role 40 hours a week. Or perhaps the budget doesn’t allow for hiring an internal HR Director. In other cases, they may have an HR person who is newer in their role, and they can benefit from having a seasoned HR Director on speed dial to help them. Or maybe their motivation is to save money. No savings are small savings when it comes to your business. Simply stated, outsourced HR is cheaper than hiring an internal HR employee. An internal HR Director’s salary can be costly, and outsourcing that position is on average 1/3 of the cost. Whether your motive is savings or size restrictions, HR outsourcing can be beneficial for your business by not only saving you money but also saving you time. There are only so many hours in a day. Outsourcing HR services can give you back valuable time to focus on your business and yourself. One of the best parts of outsourcing your HR is the different types of savings your business can experience.
Can your business outsource its HR services?
Outsourcing your HR doesn’t have to be challenging to your business. It’s important to know if you can outsource your HR in the first place. The short answer is yes! Many HR functions can be outsourced to another firm or service provider. Large and small businesses alike may benefit from outsourced hr services. While some things need to be done in-house –such as performance reviews – many of the bigger ticket items that are most associated with the company’s exposure to litigation can be outsourced to HR consulting firms. It’s actually quite common to have a third party complete projects such as updating the handbook, training employees, and receiving updated documents like labor posters and I-9s. What’s great about hr outsourcing is that you can usually customize the type of partnership you want with this third-party service. Just because you are outsourcing hr doesn’t mean you are losing control. You are still the owner of your business and have the final say in all decision-making. You also don’t have to outsource all of the HR functions if you don’t want to. For example, some people outsource just the written programs and policies, others will outsource just the employee training piece, while others will outsource the bulk of the HR functions. The best part – this is all up to you!
Should I hire my own employee to handle my HR? Well, not always. Let’s see how outsourcing HR makes great business sense.
Outsourcing your HR makes good financial and business sense. An HR outsourcing firm can bring in experts that will help reduce your liability at a fraction of the cost. For example, an internal HR Director can run anywhere from $80-$120,000 a year plus benefits. Outsourcing many of those duties can help ensure you’re receiving the same high-level support without having to sustain that large salary on your payroll. This works great for companies that need HR but doesn’t yet have the budget for a full-time person. This can also be a good solution for a company that doesn’t have enough internal support. Maybe you have a fantastic HR person, but there’s only one of them, and you’ve got 100 employees. While that person is great at their job, they simply don’t have the hours in the day needed to keep up with the demands of the team, ever-changing labor laws, and the training and technology needed to support each function of HR. Human Resource management can be a lot for one person to handle. Outsourced HR can take some of that load off their plate so that nothing is slipping through the cracks. Working with an outsourced HR model offers an additional level of support and review for administration and compliance-based tasks that may get overlooked. How a company handles HR can be a huge area of exposure if it’s not done correctly, so delegating this crucial yet sensitive piece of the business to an expert can dramatically lower the company’s liability. Outsourced HR support can help provide you with the necessary foresight and range of experience to help you avoid unforeseeable issues. Human Resources services of this kind often come with professionals who are equipped with the latest software and technology to support your needs and save you the high cost of implementing new programs. They are often well versed in the most up-to-date labor laws and have frequently worked with similar industries or businesses, giving them great experience and insight to possible needs and exposure. Outsourcing your HR can give your business the added layer of insurance and security that only an expert can provide.
How do other outsourced HR service providers compare to Bizhaven? Why should I focus on having HR support for my small business?
You may be wondering how Bizhaven sets itself apart from the rest or how other service providers compare to the offerings Bizhaven provides. Bizhaven’s solution for outsourcing HR & Safety doesn’t come out of a box ready to plug and play. We pride ourselves on being able to quickly identify your challenges and where there might be a liability within the company. We then design custom, unique strategies and services to address your business’s pain points, always keeping top of mind your need for minimal disruption. Bizhaven offers a proactive HR outsourcing solution that keeps you up-to-date with both state and federal law by partnering you with highly-trained HR and Safety professionals who do the work for you. Our business partners come on-site, consult, train, and provide you with the appropriate tools and services to effectively run your business and better protect yourself. Unlike other PEO (professional employer organization) service providers, the Bizhaven team allows you to retain full control of decision-making when it comes to your business. There are no complicated “co-employment” scenarios, and you still get to call the shots every step of the way. Your dedicated HR and Safety Business Partners learn your goals and custom-create training material to suit your business and needs. Your Business Partners will accommodate your schedule and plan for the future by proactively developing the training schedule and content and then rolling it out to your employees for you. Whether that’s at the office, virtually, or even at the job site, we work with you to determine the best plan of action with minimal disruption. Whether you’re a small business or you have locations across the nation, our team is here to support you with practical and thorough HR and safety services and support. Each of our consultants has an advanced degree in their field or are highly-decorated with specialized certifications that extend their education and have at least seven years of experience actually working in that field. Combined, our consultants have over 30+ years of hands-on problem-solving expertise behind them. Bizhaven partners with top-notch employment attorneys to ensure that you are getting the best and most relevant information for taking the right steps in protecting your business. The best HR outsourcing comes from those who can think proactively and can offer thoughtful management and training guidance to your employees. From employee benefits and total compensation analysis to compliance assessments and hands-on training, the Bizhaven team can back your business with the support it needs to succeed.