TPC Blog

With the New Year comes the perfect opportunity to evaluate your annual budget and your company goals for the year. After all, it's a time of year when we all tend to look back at what we have done well the previous year and come up with ways we can improve other elements into the next.

This means the New Year is an ideal time to implement a fresh start in the HR department and consider how your HR department could serve your employees and company more effectively or if outsourcing would be a better option. 

Reasons to Outsource Your HR

If you are wanting to get buy-in from your CEO and aren’t sure how to best go about it, the first strategy could be to point out the many benefits of outsourcing to them. Here’s just a few of the many reasons that make outsourcing HR beneficial are listed below: 

• Reduces Turnover: Many good HR outsourcing programs focus on helping companies to reduce their turnover margins and increase employee satisfaction. If this is something your business has struggled with in the past, it’s worth considering outsourcing. 
  
  
• Provides Professional Management of Employee Related Issues: Training and company policies are something that can be handled by an HR company who are professionals at doing just that, specializing in this particular aspect of running a successful business.
  
  
• Ensures You are Up-to-Date on Workers Rights, Labor Laws: Again, many laws are altered or changed slightly, which changes labor law or workers’ rights. Keeping on top of these ever-changing rules and regulations can be arduous. An HR company that does just that, though, will be on top of all these issues and ensure your company is up-to-date as well.
  
  
• Refocuses Efforts and Production: If nothing else, the one huge benefit of outsourcing HR is that it frees your team up to work on more revenue-producing tasks. HR is a complicated field, with many tax regulations and state law ordinances to know and adhere to, which can become time-consuming.

Positive HR Changes in Each Level of Your Company

As part of your conversation with your CEO that will hopefully lead them to buying-in on outsourcing your HR, it’s important to look at the advantages  such a change could bring about within your company:

Positive HR Changes for Employees:

• Gives a clear understanding of the role each employee plays. 
• Allows each employee to better understand performance metrics.
• Improves employee experience, leading to increased retainment.
• Increase engagement of each employee, leading to increased retainment.
• Provides structured development opportunities within the company.
• Gives employees an outlet to provide  feedback without penalty. 

Positive HR Changes for Managers 

• Creates a higher level of team productivity.
• Comes along with greater employee engagement between them and the managers.
• Helps managers better coordinate their teams more effectively. 

Positive HR Changes for C-Suite

• Allows for full engagement and visibility of goals.
• Is a powerful reporting agent.
• Gives better insight, which, in turn, allows for more positive strategic decision-making.

How to Guarantee Buy-In from Your CEO

Okay, maybe guarantee is too strong of a word, but at the very least when you keep the following points in mind when presenting to your CEO, you will increase the probability of them agreeing to or buying-in on your HR outsourcing idea:

• Frame the Need with Metrics: Your first step when presenting outsourcing as a possibility is to prove that there is a problem with the way it’s currently handled. Make your point by sharing data like how much time is spent hiring, the cost of each employee turnover and how much revenue is generated by each employee. This will provide an incentive, frame working the problem. 
• Communicate Clearly and Specifically: Don’t go into your CEO’s office without a good plan in place. Be prepared, even rehearse what you are planning to say. Outline the current problems related to the HR department and then be prepared to follow up with applicable solutions. Speaking of which…
• Suggest Your Solution: Finally, present your solution. You can either outsource your HR tasks in their entirety or partner with an agency that makes the process easier and maybe provides software as well. Either way, before you approach the CEO and outline the problem, make sure you are ready with the solution. 

Bottom Line: Don’t Give up, Put in the Effort

Implementing an HR system and making positive changes is very important. If done correctly, it will pay off immensely in the years to come. Contact us to learn more today about outsourcing your HR tasks.