Human resources plays an important role in the daily operations of any business. As a business owner, you could be handling these tasks - payroll, benefits, and training employees. Have you ever felt overwhelmed by the number of hats you’re wearing at once to keep your business running? If so, HR outsourcing might be your new best friend.
What Is HR Outsourcing?
HR outsourcing is the practice in which a third-party organization handles some or all of a business’ internal HR responsibilities. Whether you need assistance with one aspect of your business, such as payroll, or you need assistance with a variety of different departments of your business, HR outsourcing can help. Any company that chooses to outsource its HR department may have the opportunity to enjoy the following benefits:
- Save money
- Improve benefits
- Lower hiring costs
- Ensure compliance
Before we continue to get into the benefits of outsourcing your HR functions, learn more here about the different outsourcing options available to you.
Functions HR Processing Provides Small Businesses
Payroll processing
Managing payroll and tax filings can be one of the most time-consuming and challenging tasks for a small business owner. Your payroll process should be one of your first priorities as you don’t want to upset your employees by paying them late or incorrectly. Although you may think outsourcing your payroll may be more expensive than doing it in-house, in the long run, there are a variety of benefits. On average, small and mid-sized companies spend $2,000 per employee per year to handle payroll. Outsourcing payroll to a PEO like GMS will guarantee compliance with local laws and ensure that your employees are paid appropriately.
The access to HR tools and resources allows businesses to enjoy the following benefits when they outsource payroll to GMS:
- Payroll processing
- Payroll software
- Payroll tax management
- Employee self service
According to the National Small Business Association, 30% of small business owners spend more than six hours each week on payroll tax administration alone. Stop holding yourself back from what you do best, growing your business, and outsource your payroll.
Employee benefits
Providing your employees with benefits like health insurance and a retirement plan will give your company a competitive advantage in your recruiting efforts. You want to keep and attract quality employees so you can continue to grow your business.
You can offer your employees the following through a PEO:
- Master health plan
- 401(k) or profit sharing
- Life insurance
- Dental
- Vision
- Disability
- Supplemental insurance
Outsourcing your employee benefits will save you time, money, simplify employee management, and allow you to spend less time worrying about benefits packages and more time growing your business. At GMS, we offer flexibility, control of premiums, access to data and networks, and overall options that you can’t find anywhere else.
Risk management
As a small business owner, you might find yourself struggling to stay ahead of the risks associated with workers’ compensation and workplace hazards. You’ll need to comply with more rules than just benefits and tax laws. When it comes to workers’ compensation, you should focus on limiting injuries in the workplace and the rising costs of workers’ compensation insurance.
Any U.S. employer must take responsibility for dealing with the consequences of workplace injuries. Every workplace injury results in a workers’ compensation claim for the employer, increasing their insurance rates. According to the U.S. Bureau of Labor Statistics employers spend an average of $0.45 per hour worked for workers’ compensation.
To avoid workplace conflicts, and worst-case scenarios, or lawsuits, you can outsource your risk management efforts to an HR expert like GMS. From cost containment to loss prevention, we do it all. Protect your employees and your business by outsourcing your risk management functions today.
Human resources
Managing HR can be quite challenging and may often be intimidating. When you outsource your HR functions like performance management, recruiting, and training, it allows you to spend more time focusing on growing your business, and less time on human resource management. Should you choose to outsource your HR to a PEO like GMS, you will gain assistance and expertise in the following areas:
- Employee performance management
- Employee recruiting and training services
- Human resource audit
- Human resources information system (HRIS)
- Learning management
- Unemployment claims management
If you choose to outsource your HR functions, the HR partner of choice will assist in determining your performance goals and disciplinary routes for poor performance. Annual reviews, salary negotiations, and other performance-related conversations are always going to be a vital part of your business operations. It’s difficult to run a small business without much support, which is why more employers have turned to an HR outsourcing business.
Outsource Your HR Functions Today!
GMS is here to assist with any aspect of your business you need assistance with. From payroll tax management to hiring and recruiting employees for your business, we have experts in every area. We understand you may have questions about the transition process and where to begin. Contact us to learn more!