The Human Resources department has been bombarded with new work over the past few years. New laws are being passed at both the federal and state level, and managing human resources is more complex than ever. Consequences for mistakes can be severe, and even a very small startup business can find that HR responsibilities are increasing to the point that doing all HR in-house is impractical.
Another challenge faced by small businesses is competition for top talent. When a small business can’t offer appealing employee benefits, they have a much harder time recruiting the people who will help their business thrive. The bottom line is that business managers and HR professionals have a lot on their plates these days, and may or may not have the help they need in-house.
Risks Small Businesses Face with Piecemeal HR Practices
Businesses may tackle HR challenges by cobbling together services from individual practitioners: a payroll company, a business lawyer, or perhaps a recruiting specialist. This may work in the short term, but it’s not a streamlined solution. Furthermore, it can be expensive, and with new requirements frequently being imposed, new specialists may have to be consulted. Over time, this approach is far from ideal. Fortunately, businesses have other options for meeting HR challenges head-on without going broke and without compromising regulation compliance.
How Outsourcing HR Streamlines Business Administration
The professional employer organization (PEO) has been proven as a valued ally for small and medium businesses that simply don’t have the in-house expertise to manage HR functions in an efficient, streamlined manner. Additionally, PEOs, by providing HR services for a range of clients, have access to benefits packages on behalf of client companies that allow small businesses to make competitive offers to talent they want to hire. PEOs make it their business to stay on top of new and changing state, federal, and tax regulations so client businesses can be confident they’re in compliance, even if they must deal with issues like COBRA, workers’ compensation, or collective bargaining agreements.
Should You Outsource All HR Functions?
Some small businesses find it easier to outsource all their HR functions to a PEO. Others are able to take care of basic HR processes in-house, and outsource those functions that are impractical to handle on their own. PEOs generally offer a range of services, so that businesses can build a partnership based on their needs. PEOs offer services like payroll administration, administration of benefits packages, workers’ compensation administration, onboarding services for new hires, and even recruiting services for companies that need help finding the personnel they need.
Finding the Outsourcing Solution That Works for You
Not all PEOs are the same, so it’s critical that business owners and managers research PEOs carefully before signing with one. This can be a complex task, since individual business needs vary considerably. PEO brokers and consultants work with individual businesses and help them determine which HR functions would benefit from being outsourced, which PEOs offer services they need, which PEOs have excellent track records, and how PEOs charge for their services. This can take the drudgery out of locating the right PEO and help businesses be confident they are taking a positive step in streamlining HR functions.
Outsourcing one or more HR functions is becoming more common as businesses come to understand the many regulations they must follow and the serious consequences that come from neglecting procedures or making mistakes. SourceOne Partners has over 50 years of combined experience in the payroll and PEO industries and helps small businesses determine which HR functions would be better if outsourced and which PEOs provide a good fit for businesses.
Contact SourceOne Partners to Learn More About Outsourcing Your HR Department
SourceOne Partners also offers cost-benefit analyses and can show businesses exactly how PEO costs are calculated – a process that can be confusing. To learn more about how SourceOne Partners can help your small or medium business evaluate your HR outsourcing options, call 561-674-0748, or contact us online.