As owners of small and medium sized businesses, we know that our human resources are our biggest asset and our largest expense. We constantly recruit, retain, manage, and grow our workforce. That cycle not only comes with a cost, but also a risk if we don’t have the systems and processes in place to handle the mounting complexities. As new workforce legislation, such as the Affordable Care Act, take effect, staying on top of policies and procedures will become even more important for HR compliance.
I ran across an article recently from Forbes suggesting that startup organizations benefit from HR Outsourcing. The article states, “Your in-house startup team needs to focus on developing your products and service, creating partnerships, and earning revenue. Your internal resources should be focused on your core competencies.” While the article speaks to startups, I feel it directly correlates to SMBs as well. Many SMBs don’t have a full-time employee to research new compliance rules and manage HR processes so the burden often falls to the owner. Unfortunately, when a SMB owner spends his/her time on HR tasks, revenue-driven activities become secondary, ultimately affecting the bottom line. In addition, the administrative burden can be heavy, details are easily overlooked, and costly mistakes are possible as a result of continual regulatory and workforce changes.
Companies that outsource their HR functions actually free up time to concentrate on their core competencies, improve compliance/minimize risk, reduce costs, and improve recruitment. In most cases, when you can streamline processes to improve your bottom line, maintain employee satisfaction, and redirect your focus back to revenue-generating activities, you’ve made a sound decision. Now, more than ever, is the time to consider HR Outsourcing! If you would like to discuss the pros and cons of HR Outsourcing as they relate to your business, contact us for a free consultation.