FedEx has over 300,000 employees, and they’re still growing!
By operating an airtight human resources operation, FedEx can stay efficient and in compliance. If you have big aspirations for your company too, then you’ll need a strong HR team. However, you don’t have to do everything in-house.
An outsourced HR team can do a lot more than you might think. They can help you avoid wasting capital, maximize growth opportunities, and so much more.
Is outsourcing HR the right move for your company? Read on to find out!
What Happens When HR Falls Behind?
By outsourcing HR, you’ll be able to avoid some of the biggest hurdles in the business world. For instance, when HR falls behind, the company’s culture will suffer immediately. Poor company culture means that employees don’t have a sense of purpose or loyalty.
Without any guidance, business protocols are thrown aside, and customers are left unsatisfied. Not to mention all of the safety offenses that can take place when the HR department isn’t in full force.
Next, when the HR department falls behind, you can miss out on revenue opportunities. Instead of promptly providing your clients with what they need, your company will be struggling to keep up.
When do you think of UPS? What comes to mind? Do you consider how large the corporation has grown? Perhaps, you find it impressive how UPS can satisfy so many customers with so many safe, on-time deliveries. UPS is another testament to what a strong HR department can help do for you.
They’re able to operate efficiently because they have a solid operational organization. Being meticulously organized is one of the things the HR department can help you with.
Whereas, letting HR duties fall behind leads to operational nightmares. You won’t meet quality standards, and accidents can happen! Plus, your company will start to feel the effects financially as well.
Inefficiently run businesses might be able to squeak by for a while. However, eventually, the disorganization catches up to them. Whether it’s through an accident at the workplace, or something else, it always catches up.
To avoid all of the nightmares that a neglected HR department can lead to, stay on top of your company’s HR needs. Working together with the third party, you can ensure that all HR responsibilities are outsourced correctly.
Improve Overall Productivity
Now that you know what happens when you don’t have an efficient HR department let’s talk about the benefits of operating a superb one! For starters, you’ll be able to start focusing on the right things.
Instead of worrying about cutting checks, you can put your energies towards growing the company. Start looking for new markets that could use your product or service.
Begin exploring possible partnership opportunities and intending investment meetings.
When you’re not stuck handling all of the menial business tasks that the HR department can do, you can help your company thrive. Before you know it, you’ll have more time in the mornings than you know what to do with.
Along with stress-free mornings, get ready to usher in worry-free evenings. When you have a reputable HR department handling things, it’s like a weight is lifted off your shoulders.
As a business owner, all sorts of responsibilities are always being handed to you. Having the ability to relieve yourself of those burdens can be a real game-changer. Your employees will probably notice right away that you seem like a different person.
Instead of constantly running scenarios in your head of fixing problems, you’ll know you have a trusted HR team handling things. Now, you can stop wasting your time on minor things.
What Outsourced HR Departments Do
So far, we’ve been expressing how beneficial outsourcing HR can be for your company. But what exactly will the outsourced HR department do? Great question!
One of the biggest responsibilities your HR department will handle is keeping up with compliance procedures. HR compliance involves establishing policies and procedures for your workplace.
The idea here is to use work practices that coincide with your state labor laws and regulation. The long-term plans should also take into account the company’s mission and resources.
When a company doesn’t keep up with compliance, several penalties can take place. The penalties can range from monetary to losing necessary business licenses.
For instance, you have to follow all federal, local, and state employment laws as an employer. If at any time you’re suspected of not complying, you could experience an audit. An enforcing agency will complete the audit and possibly issue fines if they cite any compliance issues.
Next, your HR department will work with your legal team to help your company comply with wage and hour requirements. Together, they’ll address any potential pay issues or problems that could arise from the clockwork.
For example, employees have to record every single hour that they work for your company. This includes any work that the employee performs outside of regular working schedules.
Even if the work wasn’t requested, the responsibility is still to report an accurate time card. If a business doesn’t carefully document all of the time employees work, they could face a world of legal complications.
Perfect Payroll Solution
Do you dread doing payroll? Then we have some great news. When you outsource your HR department, you can also request that they handle your payroll responsibilities. If you already have a payroll department in place, they can work alongside the HR team of your choosing.
What are some of the payroll services and HR outsourcing firms can help with? First, they’ll be able to assist your company with payroll setup. That includes getting new employees in your system and all set to receive their first paycheck.
Next, you’ll be able to hand over the tax filing responsibilities as well. Printing, filing, and sending out w2’s and w-4s will no longer be something you worry about. Instead, you’ll have a trusted HR team to handle everything for you.
They’ll also be taking care of all the payroll cycles. Whether your company works weekly, bi-weekly, semi-monthly, it doesn’t matter.
An experienced HR team will be able to process whatever payroll cycle your company uses. This includes calculating sick leave, vacation, and every employee paid time off.
When an employee needs employment verification before onboarding, your HR department can help with that too. They’ll be able to verify the employment histories of both current and past employees.
Next, modern HR departments will be comfortable working with online payroll submission. In other words, say goodbye to paper taxes and hello to digital convenience.
By automating the standard deductions and using an online platform. As the business owner, you’ll have access to the integrated time clock system as well. That means you can get real-time reporting about your employee’s activities.
Develop Long Term HR Strategies
Moving on, your HR department will be able to help develop long-term strategies for your company. The exact needs of your business are unique, so you’ll have to customize the design to fit your needs.
For example, business owners will need to decide between a single source vs a BPO HR strategy. If you don’t know what these two strategies pertain to, don’t worry. We’ll provide you with a brief overview, and your HR team can give recommendations as to which one will best suit your company.
Let’s start with the BPO. BPO stands for business process outsourcing arrangements. A BPO is the best strategy for employers looking to contract specific business tests. For instance, you could set up a BPO to contract payroll to a third-party provider.
Single source outsourcing, is when business owners outsource multiple responsibilities. Instead of contracting out one task, they’ll be finding a third party who can solve all of their burdensome administrative duties.
The single supplier HR professional will cover the entire employee life cycle. They begin with recruiting and continue with time and labor supervision. This includes handling payroll, managing employees’ paperwork, and taking care of benefits administration.
We suggest going with a single-source outsourcing solution since it’s more comprehensive. Instead of keeping track of multiple contracts with various third parties, you’ll have a one-Stop shop, like https://finvisor.com/.
PEO vs. HRO HR Company
Moving on, you’ll also hear the terms PEO and HRO as you begin searching for a third-party team. A PEO is a third party that operates as a type of co-employer. They’ll technically be the ones hiring the employees, and it’ll be their name listed on the record.
The co-employment approach is simply a way to share your administrative responsibilities. You’ll still maintain complete control over Business development decisions and employee functions. However, the PEO will be able to handle negotiating insurance claims and tackling legal notifications.
What is an HRO? An HRO is a customized agreement policy. As the business owner, you’ll be able to handpick precisely what responsibilities you want the third-party team to take care of.
Will you be asking HR to handle employee benefits management? Do you want the HRO team to create employee handbooks? Think of your HRO HR team as on-call support, ready to help at a moment’s notice.
Take a moment now to decide whether your company would benefit most from a PEO or ho plan. Next, start searching for a provider by researching the trade association list.
You’ll need to look for third-party teams that are familiar with your particular industry. Once you find a potential company, reach out to set up an initial consultation.
Let the vendor know precisely what you’re looking for. The more specific you can be, the better. Even if the third party you contact isn’t able to accommodate, they might be able to refer you to a sister company who can.
Excellent Employee Retention and Safety
Next, let’s dive into exactly how outsourcing your HR team can help with onboarding new employees.
It’s easy to let small things slip through the crack in the middle of all the onboarding paperwork. Not getting an employee’s tax info, or forgetting to scan a license, are common mistakes. Unfortunately, the smallest onboarding mistake can lead to complications down the road.
Thankfully, a third-party HR department will be able to help you avoid trouble. They can attract the top talent, bringing only the best candidates to your team.
By finding the best new hires, you’ll be able to reduce the expensive cost of turnovers. Before you know it, your company’s productivity will be skyrocketing!
Better Employee Benefits
Last but not least, outsourcing HR means better employee benefits. You’ll be able to stay up to date with all of the latest workers’ rights while also keeping your employees happy.
HR professionals will know how to seek out the best employee programs. This includes recognition programs and setting up workers comp. They’ll also be providing employees with health insurance opportunities. Comprehensive dental, vision, and health plans are easy for HR teams to find.
What type of employee recognition programs could help your company? There are so many! Compensation isn’t the only thing that gets employees motivated.
An experienced HR company will know how to get to the heart of what your employees want. Modern appreciation programs are also finding ways for coworkers to express their gratitude for each other! One of the ways your HR team can do this is by creating a space in the online portal for positive feedback.
Explore Outsourcing HR
Do you need any more reasons to start outsourcing HR today? Building a productive company, keeping up with labor regulations, and handing over payroll… it almost seems too good to be true. But when you find the right HR team to work with your company, the sky’s the limit.
Since there’s a lot of options out there, you’ll want to start your search today. Begin looking for a reputable company, and set up an initial consultation. For more tips like these, see what the rest of the site has to offer.