TPC Blog

Human Resources is a vital component of any well-run business. While many businesses, especially those on the smaller side or those who have recently opened, are more apt to attempt their own version of HR without the help of outsourcing, other business owners, those with more experience and longevity in their field, can see the benefit of outsourcing their HR responsibilities.

If you are currently attempting to handle the role yourself and find yourself overwhelmed, you are not alone. Many find the duties of this all-important position group arduous. Thankfully, you don’t have to go it alone. When you outsource this valuable position to HR experts, you will derive many benefits. 

Who Are The Experts?

Before looking at why it’s wise to outsource your HR, it’s first important to understand that HR professionals possess a deep understanding of countless processes and regulations, many of which have severe consequences if they are performed incorrectly. For businesses in the beginning stages of their existence, it’s easy to underestimate the immense scope of responsibilities that are handled by these professionals and attempt to handle them in-house. We urge you to reconsider and contemplate the following five reasons you should outsource your HR functions:

1. Mitigate Legal Risks

Did you know one singular lawsuit is enough to sink your business? That’s right. If you have one problem with labor law or some employee compliance issue, you could be facing the termination of the business you just got off the ground. It’s just super easy not to know every single tax, labor, and employment law on the books. After all, as a business owner in a totally unrelated field, why would you know this information? Thankfully, HR professionals are experts. Therefore, when you outsource HR to a professional, you know you are mitigating your legal risks and protecting your hard work from the real risk of a lawsuit. 

2. Outsourcing Gives You The Ability To Offer More Services

Another benefit of outsourcing your HR is that you can sometimes offer more services and perks when you do this instead of handling it yourself. Services like direct deposit for paychecks and other similar features. Additionally, external providers will have their own software to manage employees’ time and attendance, compliance documentation platforms, payroll platforms, and more, which can make life easier for everyone. 

3. It Can Make Your Employees Happier

Employees want and deserve excellent benefits and HR services. When you outsource your HR to an expert, they are given the benefits and services they deserve. This will often make them happier overall and can even lead to a healthier employee retention rate. In addition, when your management team has an HR partner to help build your culture, your company will thrive long-term. 

4. Outsourcing Gives You The Ability To Focus On Other Responsibilities 

Your number one focus as a business owner should be running and operating a successful business. If you are spending hours trying to stay on top of HR responsibilities, the “running the business” aspect can get lost in the shuffle. Therefore, when you outsource, you are given the opportunity to concentrate more on what is important to running your business: the day-to-day operations. 

5. You Will Save Money

While you will have to pay for HR outsourcing, you will likely save money overall when you compare the cost of outsourcing to hiring an HR practitioner to work for you full-time. Therefore, outsourcing your HR services can actually save your business money in the long run. 

Set your business up for success by outsourcing your HR. Our team of HR professionals has years of expert experience and would love to help you find the best solutions and services for your business’s needs.

Originally published 7/7/21 - Updated 12/7/23