As a business owner, as your company scales, having the right HR capabilities in place can make a huge difference in the organization and functionality of how things work. One of the biggest challenges is maximizing your operating budget the right way. Although human resource management functions are needed, the thought of outsourcing can be overwhelming because of the perceived cost.
The truth is outsourcing HR managed services can actually assist in reducing overhead. And if you are already using an outsourced HR model, it may be time to look at your budget to see if any changes are needed.
What Does Outsourcing Your HR Mean?
This is when a business hires a third-party provider to handle HR management tasks. A personal HR representative is assigned to your organization to navigate your needs. With an outsourced HR team, you’ll have more legal protection from professionals who know what to do, what to look for, and how to handle specific situations.
You’ll also have a wider resource of services to offer your employees and beef up your current HR
processes. You may have several tasks and don’t have adequate manpower. Outsourcing gives you the advantage.
Why Now?
If you’re working on adjusting your annual budget, evaluating your HR systems and how it relates to your budget can help find cost savings.
If your business is struggling in this area, it’s time to outsource your HR processes or make some changes. Evaluate the following:
- Are you spending a disproportionate amount of time on HR tasks compared to other areas of your business?
- Are your HR functions spread among employees from other departments?
- Do you have enough in-house HR staff to properly balance hiring tasks with employee management? Did your HR Staff go to school for HR, or did you simply give them the title?
- Do you have HR compliance systems set in place?
If any of these are lacking, you may need HR Managed Services. Here are some examples of what an HR Managed service provider does:
HR Audit
What are we currently doing and not doing as a business that might get our organization in trouble?
HR Compliance
Your policies and procedures need defining to make sure your work practices are in line with the law, your employees know what they can and can’t do, and everyone is properly trained.
Recruitment & Job Descriptions
Recruiting the right people takes time and money. You must also have accurate job descriptions in place to make sure you are recruiting the right talent and are offering pay commensurate with qualifications and experience.
Employee Onboarding
Not having a comprehensive employee onboarding process in place adds chaos and non-compliance. HR Managed services develop programs that make this process seamless.
Performance Management
Giving employees feedback on their performance more than once a year helps build morale. Having a process in place to do this effectively cuts down on risks and keeps everyone on the right track about roles and expectations.
Termination
Terminating employees is never easy. There must be a solid termination policy in place or this can result in lawsuits for favoritism, discrimination, or worse. There should be a defined practice on the steps the company uses that lead to termination. Additionally, these infractions should be spelled out in a handbook that employees can refer to.
Training & Coaching
Employees can’t excel if they don’t have the training to do their jobs effectively. An HR Managed services provider can assist in developing training programs that address every area of the company, including onboarding and department-specific policies.
While there are costs involved with outsourcing HR functions, your business will save money in the long run when compared to hiring a dedicated HR employee or full-time team. Set your business up to succeed the right way. Our team of HR professionals has the education, training, and expertise to provide comprehensive solutions and services.
Originally published 11/2/21 - Updated 8/3/23
