Human Resources is an industry that has evolved at an incredibly rapid pace due to technology. For certain organizations, HR outsourcing can ultimately be more cost-effective than having an internal HR department. HR outsourcing solutions can help increase an organization’s overall efficiency, improve employee relations and provide HR compliance.
What Are HR Outsourcing Solutions?
In essence, HR outsourcing solutions are designed to give organizations the option of delegating HR-related tasks (payroll, training, recruiting, benefits administration, etc.) to a team of human resources professionals. Some HR outsourcing companies that specifically assist small businesses are known as Professional Employer Organizations (PEOs). One study conducted by economists Dan McMurrer and Laurie Bassi showed small businesses that utilize PEOs for HR services grow 7 to 9% quicker and are 50% less likely to see their business fail.
Improving Efficiency With HR Outsourcing Solutions
The simple action of outsourcing HR functions to another company can help an organization allocate more time and resources to other objectives, such as increasing profit margins or reaching a new network of potential clients. Ultimately, most companies today (regardless of their industry or purpose) seek to generate value, both tangible and abstract, and to optimize their use of time and resources devoted to achieving their goals. In other words: in today’s increasingly quick-paced and globalized world, efficiency has become a key priority for many organizations.
Assistance With Employee Performance Appraisals
An employee performance appraisal is a process that managers use to evaluate an employee’s job performance via both oral and written questions. The results of this process are used to determine whether promotions and pay increases are appropriate. According to Officevibe, a website on employee engagement, 96% of employees say they like to regularly receive feedback from their superiors.
This process can also often helps to gain a fresh, outside perspective. The simple act of enlisting the assistance of another professional (or group of professionals) to evaluate an employee can allow an organization to identify issues that previously went undetected (because too much focus was placed on one particular characteristic of that worker or his/her duties or department, for example).
Better Job Development Methods
The phrase “job development” refers to the constant contact between prospective employers that results in interview opportunities that may not have existed under certain circumstances. An HR outsourcing organization can help your business ensure that its interview process is tailored for each vacant position in such a way that the best candidates are hired for each role. In the end, every organization seeks to optimize value.
Enhancing Employee Review Workflow
Similarly to employee performance appraisals, performance review workflows can be improved significantly thanks to HR outsourcing. This can be especially true given what studies reveal about how employees of certain age groups respond to feedback on their performance. According to LinkedIn, 80% of millennial workers say they prefer to be recognized on the spot for their achievements rather than be formally evaluated.
Improving Employee Relations
Though conflicts between employees are virtually inevitable in many industries, HR outsourcing can efficiently handle these disagreements. The company hired to assist your organization has HR executives with years of experience handling complaints in such a capacity.
Guidance During Strategic Planning
An outside perspective is extremely advantageous during an organization’s strategic planning phase in any project. An HR outsourcing team offers guidance on tactics that may yield great returns based on their own experiences with similar endeavors.
Remaining HR Compliant
HR compliance refers to the verification that all of an organization’s employees are adhering to state and federal laws that dictate how workers should be treated. These laws dictate what types of documents and information must be collected from new hires, proper ways for tracking time off, and other essential information. If an organization is ever found to not be HR-compliant, it may be fined or penalized in other ways.
Learn More About HR Outsourcing With BenefitCorp
Speak to the professionals at BenefitCorp to learn more about the advantages of HR outsourcing solutions. Since our founding in 1995, we have strived to provide individuals and companies with top-tier PEO, insurance, and retirement plan consulting solutions.
BenefitCorp is committed to offering HR solutions that can optimize HR compliance, strategic planning, and employee relations, among other things. No matter what your organization’s size and financial situation are, our team of consultants will work tirelessly to resolve your unique needs. Call BenefitCorp today at (972) 737-7875 or contact us online for more information about our services.