Businesses have a number of good reasons to hire third parties to administrate aspects of their human resources department. Within the general field of human resources, the development of human resources outsourcing professionals is growing. Businesses are recognizing that they can streamline some of their operations and enjoy various advantages by taking part of what an internal HR team used to do and assigning it to a third-party service provider.
The Cost of a Salary or a Seat
One reason that businesses do outsource human resources is related to something very basic, which is the actual cost of hiring a full-time employee. Many of these large costs, such as health insurance coverage, worker’s compensation insurance, payroll costs and the cost of other benefits, tend to be a significant part of a company’s balance sheet. What outsourcing companies can do is locate workers in other third-party groups that are aggregated to provide more efficient costs. A single HR third-party service might have thousands of workers signed up in one group plan in order to “regionalize” these costs and help individual clients offset them.
Workplace Compliance
Another compelling reason for outsourcing HR relates to the challenges and liabilities of the everyday workplace. Smaller companies or even moderately sized companies can find that their HR offices are struggling with all of the oversight and auditing, as well as training and other activities, that support a fully compliant workplace. Whenever there is a threat of some kind of violation of existing laws and regulations, it can lead to serious issues for an enterprise. Third-party HR services provide expert staffers that can handle the task of maintaining compliance with rules set by OSHA and other workplace regulators. This can help to save a business from various kinds of liability, whether it is related to workplace discrimination, improper safety protocols, or any other element of a managed business process.
A Distributed Workforce
Apart from the specific practice of outsourcing HR, there’s a larger trend within the business world to distribute a workforce across many different areas, rather than collecting all of the company’s employees in a single local headquarters. Allowing for distributed workforce models can save businesses even more money, while allowing them to attract better talent. This is another aspect of how outsourcing HR can help any kind of company in nearly any sort of industry. Issues involved in choosing the best configuration for a distributed or remote workforce include:
- management and tracking of employee hours for payroll and overall administration
- tools for remote training and management of particular front-line or customer-facing roles
- interface management and optimization
- allowing for HR research to screen potential employees
- providing a secure environment for remote work
C-suite managers or other top staffers should think about all of these considerations when evaluating a move toward a third party HR service. Rather than staying with what’s traditional, businesses are quickly renovating their internal structures to stay competitive, and HR outsourcing is a major part of that process.
For more on how HR outsourcing can help a business, and to handle all of the issues around maintaining a compliant and capable HR department, call Integrity Network Insurance Group at 512-989-6006. We are ready to help you with the Round Rock HR Outsourcing your business needs.