5 Reasons to Outsource Your HR in 2022

5 Reasons to Outsource Your HR in 2022

The workforce is experiencing rapid change. Many people have become used to working from home and come to expect it. Others have discovered that they are not, after all, in the right career. Turnover has been exceptionally high as people look for "better," by whatever definition that is. Many companies are fighting to keep staff. 

Through what lies ahead, you need a stable HR partner who can help you navigate all of these changes and ensure that your company doesn’t fall victim to the Great Resignation. 

Here are five key reasons to outsource HR in 2022. 

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Competitive Benefits 

Labor, right now, is very much a seller's market. To attract and retain the top talent, you need to become and stay competitive; you need to offer high-quality benefits. Affording benefits is a challenge for smaller businesses that lack large companies' buying power, but you simply cannot afford not to offer them.  

Partnering with a PEO gives you access to their master benefits plan, allowing you to share in economies of scale and benefit from their experience negotiating coverage and rates. It makes it easier for you to afford decent retirement benefits for your employees. This reduces the risk of employees leaving to get better benefits because of a life change, such as the arrival of a child. 

Robust HRIS 

Many small companies don't have any kind of decent human resource information system (HRIS). Good HRIS software can be expensive, and it takes a lot of time and effort to learn to use effectively.  

However, if some or all of your workforce is remote, having a robust HRIS system becomes far more critical. An outsourcing partner will already have enterprise-grade HRIS software that they know how to use, giving you the full benefit of the system without high costs or a steep learning curve. 

Compliance Across State Lines 

More and more companies are finding they have remote workers in multiple states. Limiting where your remote workers can live may result in some of them leaving for an employer who has no such restriction. 

You need somebody on your side who can help ensure that you comply with the labor laws in every state where you have workers. As most small companies can't afford a full-time compliance officer with this kind of experience, partnering with a PEO is the best way to achieve this. They can help you avoid fines and lawsuits and handle most of the complicated paperwork for you. 


As your business grows, your HR solution needs to grow with it. The solutions that worked well with five employees are not going to serve 50. Compliance needs also change as you become covered by more regulations. 

If you try to do your HR in-house, you will eventually need to enlarge your team, which is expensive. Outsourcing allows you to acquire resources as you need them, and thus you can put off hiring another full-time person until you truly need to. 

Keep in mind that some HR solutions, such as hiring a payroll processor, do not scale well. A comprehensive solution is always better. 


Ensuring that employees always get the answers they need can also be a challenge. By outsourcing benefits administration, you ensure that your employees get a quick response to their simple questions. You can then dedicate your time to the more complex ones. 

This also means that your HR outsourcing partner is always there to answer your questions. You should be able to call them at any time to get the information you need. For this reason, it's often good to choose a local partner who is in the same time zone and is familiar with your area and industry. 

Outsourcing HR is a key way to stay abreast of the industry challenges. It helps you gain competitive benefits and access to robust HRIS systems and the knowledge of how to use them. You can also handle changing labor laws across multiple states without having to hire a full-time compliance officer. Your HR solutions need to be responsive and scalable. 

All of this means that you need a dedicated local PEO. A PEO can work with you to put together the right HR solution for the needs of your business. To find out more about how Executive HR can help you, check out our blog or call us today. 

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