Outsourcing your Human Resources functions can greatly increase your return on investment. However, many aspirational medium and small business owners analyze the structure of some of the most successful companies and attempt to replicate it hoping for the same results. However, small or medium businesses should be doing the opposite.
Analyzing the structure of a Fortune 500 company, it doesn’t take long to notice the large number of business functions that land underneath its umbrella. A company of this size would have departments in marketing, business analytics, finance, human resources, legal, and more, all provided in-house. With multiple moving parts, it’s easy to equate success with the “all-in-one” structure of a company, when in reality it has much more to do with size. However, what these small and medium businesses don’t realize is that they could be saving up to 70% from outsourcing various tasks and responsibilities, especially those related to human resources.
Whether you’re a medium or small business, it’s important to focus on what makes your business the most money: Human Resources. While many businesses view HR as non-essential or something that doesn’t directly impact their bottom line, the reality is quite the opposite. When considering the idea that every employee has a direct impact on profitability, your approach to acquiring, training, paying, and administering benefits to those employees becomes a reflection of your success. In addition, as businesses choose to outsource over in-house management, they are able to focus on accomplishing the mission of the business, not filling out paperwork.
Outsourcing HR to a PEO company allows you to reallocate the responsibility, management, and work load of various tasks, giving you the freedom to complete tasks that focus on maintaining and growing your business. Some of these services may include:
- Benefit Administration
- Compliance Services
- Employee Retention
- Employee Health Insurance
- Payroll
- Risk Management
- Tax Services
- Time and Attendance
- Workers Compensation
- And more!
Outsourcing services like these allow for your employees to focus on important functions that in turn can exponentially increase productivity and efficiency, opening a door to expansion. Ready to see how outsourcing could help improve your productivity and therefore add to your bottom line? Start a conversation with one of our experts today to find a solution to best fit your needs.