Too busy to deal with it? Outsource it!
Business leaders and owners have a lot on their plate these days. You may never have considered an excellent resource that could free up your time and save money – HR outsourcing. Simply put, HR outsourcing is when a company engages a human resources consulting firm to perform its human resources functions. Companies can outsource all or just a portion of its HR responsibilities, or use a consulting firm to manage a few pertinent or challenging short-term HR tasks.
The Benefits of HR Outsourcing
HR responsibilities are much more complex than they were even just a few decades ago. Gone are the days when HR’s sole purpose was to hire, fire and manage payroll. HR is now tasked with federal and state legal compliance, benefits administration, professional development, succession planning, management training, performance management, employee relations, and the list goes on. These tasks require a considerable amount of personnel time and company money. For many companies, outsourcing their HR to an outside company frees up internal personnel, allowing leadership to focus more on the business and less on HR administration.
Specifically, HR outsourcing can reap these benefits for your company:
- Offers HR expertise that can help your company develop a complete HR strategy, including competitive employee retention and benefits packages that align with your business goals, values and mission.
- Ensures your business is up-to-date on HR compliance obligations, many of which require your company to prepare reports, distribute information and meet deadlines.
- Ensures that your team has access to the latest HRIS software, complete with a readily available HR expert to assist as needed. Current HRIS software can streamline HR processes and reduce costs.
- Provides data analytics that will help your company refine its HR processes, from improving performance management and employee satisfaction, to streamlining employment termination.
HR outsourcing allows your company to get the best HR services available without making a significant investment in building or expanding your HR department.
What HR Services Can be Outsourced?
Just about anything an HR department performs can be outsourced. You can hire out the entire HR function, or only those responsibilities that make sense for your business. A few of the many HR functions included in a comprehensive HR outsourcing solution include:
Recruiting – Outsourcing the recruiting function allows your company to use advanced online and cloud-based technologies combined with successful HR practices to recruit the absolute best candidates. You can outsource the process from beginning to end. From the development of recruiting strategies, to candidate sourcing, screening, skills assessment, reporting, interview and selection assistance, activity metrics and on-boarding.
Benefits administration – An HR consulting firm can also help your company manage employee benefits. HR consultants can create a competitive benefits package and manage all aspects of it, from enrollment and administration to reporting.
Performance management – Effectively managing employee performance is critical to your company’s success. An HR consulting firm can help your company build a performance management system from the ground up that includes effective evaluation tools and processes along with training to ensure your supervisors and employees know how to use the system. A good HR consulting firm will ensure your performance management system aligns with your company’s culture.
Projects – HR consulting firms can also provide project-specific assistance, such as developing job descriptions, updating an employee handbook or developing strategies to improve employee morale.
Audits – An HR audit is an excellent way to take an in-depth look at your HR function to identify weaknesses and/or areas that need improvement. An HR outsourcing firm can conduct an HR audit that examines legal compliance, HR processes such as recruiting and on-boarding and whether HR is using best practices for your industry. During an HR audit, an HR consultant reviews, among other items, personnel files, employee handbooks, job postings and applications, job descriptions, performance appraisals, disciplinary documents, compensation systems and data security.
Management training – HR outsourcing may include developing and providing opportunities for professional development. An HR outsourcing firm can assess your employees’ career development goals and help you implement training programs to help employees achieve them.
Executive coaching – You can invest in your leaderships’ growth and development through executing coaching whereby leaders learn a variety of skills and competencies to make them better leaders. This coaching can range from a focus on lifestyle goals such as how to stay healthy and balanced, to improving communication or project management skills.
Contact Smart HR for More Information
Now that your eyes are open to the benefits of HR outsourcing, you should consider whether your company could benefit from such an arrangement. Smart HR consultants offer expertise on any and every aspect of HR. Whether you need on-going HR support or assistance with a specific project, we are here to help. Call today!