Small and medium-sized business owners have to do it all. From hiring and employee discipline to budgeting and marketing, your job never ends, and it covers every nook and cranny of the business.
You need to monitor every moving piece of your company so it keeps flowing as you plan. That doesn't mean you have to do everything, though. Outsourcing some of your business functions can be scary, but with the right partner, you can trust that they will get the job done right and in alignment with your goals. Outsourcing HR to a Professional Employer Organization (PEO) is one of the best moves you can make.
What are the benefits of outsourcing HR?
Companies that partner with a PEO see an ROI of 27.2%over businesses that choose to keep HR entirely in-house. This ability to get the help and support you need while also being a cost-effective option may be exactly what your company needs.
Beyond your cost-effectiveness, however, you can also gain a competitive advantage. A PEO is a specialized HR outsourcing company that can support you with all your HR needs, including negotiating at scale to get you and your employees high-quality and cost-effective benefits.
10 Clues It's Time to Outsource HR
Deciding if and when it's the right time to outsource your company's HR isn't always easy. Look at the following ten clues to help you decide.
1. Getting - and Staying - Compliant
Small and mid-sized businesses face countless regulations. Federal, state, and local employment laws can stymie growth and hinder progress. But failing to follow those laws can be even worse, resulting in costly fines and employee lawsuits.
To help you avoid those mistakes, a PEO will stay up-to-date on all relevant employment laws and help your company make adjustments as necessary. Without a trusted guide, your company risks steep government penalties.
2. Attracting the Right Employees
Your company has to hire exceptional employees to help you achieve your goals. Trying to do that alone can be extremely difficult.
With a PEO, your company can get the hiring support you need. Your HR outsourcing partner can help you craft attention-grabbing job descriptions and review applicants so you only meet with the best of the best, saving you time and effort.
3. Training and Educating Your Current Employees
Onboarding should include training new hires on your company processes and their individual roles. But it shouldn't end there.
Your company needs regular training sessions for all team members. Not only are some trainings required by employment laws, but safety training can help keep your employees safe at work while also reducing your workers' compensation costs.
4. Developing Employee Policies
Part of running a business includes making sure your team knows how to work and how to act. Company policies help with this goal, but they are time-consuming and tedious to create.
An HR outsourcing partner can help you create policies that accurately reflect your company values and help your employees succeed. A PEO will also help you ensure your policies are compliant with employment laws.
5. Dealing with Risk and Liability
Every business faces potential risks. Depending on your industry, you may face workers' compensation risks or you may deal with unemployment claims.
A PEO will help you reduce both of these risks, among others. Your trusted advisor understands the risks your business faces and will help you proactively attack those risks to help you avoid difficulties in the future.
6. Managing Payroll
Payroll takes time, and it can be tedious. It's also crucial that your payroll is correct every time because employees will start looking for a new job after just one missed or incorrect paycheck. To help you make sure your payroll is right every time, your PEO will handle your payroll for you.
Becoming the employer of record, your PEO handles all payroll-related tasks, including tax remittance, taking that burden off your shoulders.
7. Administering Benefits
Because a PEO is the employer of record for your employees, they can also administer your company's benefits on your behalf. If you're struggling to find cost-effective benefits and have no idea where you'll find the time to administer those benefits, a PEO might be right for you.
8. Improving Efficiency and Performance
You have enough to do without worrying about how to handle employee performance issues. Especially because these issues can become contentious, letting a PEO help can ease your burden.
Through effective performance reporting, you gain insight into where your team has gaps and how to handle individual performance issues. Your PEO can provide you with templates and guidance on how to discuss employee issues and get your team back on track.
9. Saving Time
You probably don't have enough time as it is. Any tasks that you can get off your plate and transfer to someone you can trust will go a long way to helping your business succeed.
With a PEO, all of the time-consuming HR duties you have been doing on your own are now gone. Instead of dealing with the minutiae of it all, you simply oversee and direct your PEO.
10. Cutting Costs
As a small business owner, you're always looking for ways to cut costs. You can easily cut costs, but it's not always a good idea. Effective cost-cutting is more challenging.
Your PEO can help you reduce costs by taking on complex HR tasks. But they can also help by adding best-in-class benefits to your company, giving you a competitive edge and helping you attract and retain top talent.
A PEO may be the Solution Your Business Needs
If you find yourself constantly out of time and pulled in too many directions at once, it's time to look for a suitable solution. With a PEO, not only can you give yourself more time to focus on your core business needs, but you can also give your employees the benefits they seek, at costs both you and your employees can afford. Find out more about how Execustaff HR can give you the support you need.