Business Best Practices, Human Resources

Things to Know Before You Outsource HR in 2019

Jan 21, 2019

74% of companies are upgrading their HR technology in the next 3 years.

In my experience there is a big misconception about outsourcing payroll, staffing and other HR functions. To name a few…people are afraid of losing their job, companies are worried about the cost, companies don’t see a need as they feel they are too small. It’s time to change the way you see outsourcing HR because doing so can save you, your employees, and your company BIG – time, money, and a lot of undue frustration (optimization). It’s time to be proactive when it comes to managing the foundation of our business– our people.

Benefits of Outsourcing HR

Misconception #1: “I am a small business. I don’t see the need.”

With the ever changing world, compliance is more important now than it ever has been. Look back to just 10 years ago and what compliance meant then versus now. How is a business owner, or even a small HR team, supposed to be an expert on all the ever changing laws, including things like ACA, employee wages, tax law, or even data encryption when transferring personally identifiable information (people data)?  Today, the technology used for HR management will keep your people data secure at all points, accessible on-the-go, and accurate during cross-department communication. Having a team of certified HR professionals at your back will keep you in-the-know so you can be confident about compliance and focus on the reason you opened your business to begin with– it’s your passion!

Misconception #2: “We can’t afford to outsource.”

To impact your bottom line and reduce your overall labor cost. Now, a lot of people say to me, how? How can you do that? The answer is actually very simple. Human Resource functions are non-revenue generating. They are a tactical aspect of the business that “just have to be done”, in other words, they don’t make the company money. (or do they?) In fact they cost the company money. So if you can offload certain aspects of HR, it frees up time for your HR department to focus on more strategic revenue generating aspects of the business & planning for the future. The Human Resource department should be one of the most strategic departments of a company. It is in charge of the company’s biggest asset– yep you guessed it, employees!

Misconception #3: “If we outsource, my job will be gone.”

HR consultants & service teams aren’t in the business of taking peoples’ jobs rather we strive to make working peoples’ lives better. Keeping your HR processes simplified and streamlined will ensure you & your team can give focus & dedication to your key business. Instead of spending your time caught up in paperwork, correcting mistakes, reworking processes you will find you get to spend more time with people, doing more meaningful work, and get to enjoy a more desirable work-life balance. You & your team will be less stressed & more engaged with each other and the work you’re doing, leading to increased productivity and company growth. When you outsource HR services, your job won’t disappear it will just get better. Now, does that sound all that bad?

Are you being proactive in 2019? Mitigating risk starts with optimizing your internal processes.

There is no company too small or too big to start outsourcing HR. By outsourcing some or all of your HR processes –from recruitment to retirement — it will open up so many more avenues for your company. You will not only reduce your labor costs but will also increase your team’s productivity and your return on investment at the same time.

The most expensive words in business are “I have always done it this way.” If that is your mind set, or what your team is accustomed to, I would challenge you to think about what you just read. Outsourcing HR and implementing HR technology will take your business to the next level. You just have to be willing to think differently.

Businesses have identified that their HR processes, while not directly revenue generating, can have a MAJOR impact on their bottom line. 88% of HR employees say employee engagement is now a strategic priority for their company. 74% of businesses will increase investment in HR technology in the next 3 years.

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