5 Benefits of HR Outsourcing

Outsourcing either some or all of the human resources functions within your business can make good sense. HR outsourcing is sometimes confused with offshoring, but that’s not what it entails. It simply means moving aspects like payroll administration, benefits management, employee relations, to a third party. Here are five benefits of HR outsourcing for companies.

1. Payroll Administration without the Hassle

Usually, payroll services fall under the HR banner with someone on-staff to handle the requirements. However, with human resources outsourcing, it’s possible to simplify things by using an outside company to perform this service for you. Companies are responsible for remaining compliant with all relevant state and federal regulations, dealing with the IRS, and so forth. This can be a drain on the resources of the company whose attention is better spent on growing the business. Human resources outsourcing from a company like G&A Partners ensures that all employees are paid correctly, the right financial information and disclosures are reported, and that nothing gets missed.

2. Workers’ Compensation Claim Management

When a workers’ compensation claim is received, smaller businesses struggle to know how to handle it. Because each case is different, they are often ill-equipped to manage the situation well due to inexperience. Managing claims, keeping accurate records, performing audits, and staying on top of the situation when employees have become sick or injured is a lot to juggle. Through outsourcing to a specialist that is well versed in these matters, they can take the correct steps and ensure all the i’s are dotted and the t’s are crossed.

3. Keep Energy and Focus on Business Growth

Fast-growing businesses suffer numerous growing pains along the way. When you need to vet and take on new employees at a rapid pace to match the growth curve, it’s distracting. By removing many of the time-consuming parts of recruitment and HR policy management, your energy and focus can remain firmly on managing the expansion. While expansion is generally a good thing, when managed poorly, blunders can cause a company to come unstuck. However, by avoiding being as distracted by the increasing administration involved, this becomes less likely.

4. Standardized Applicant Proficiency Testing

Depending on the job application, it may be possible to have applicants complete a proficiency test. These types of tests are specific to the type of work they’ll be performing. For example, a junior programmer applicant could complete coding tasks and answer a general knowledge quiz on questions that programmers should immediately know. Similarly, a typing test can confirm both typing speed and accuracy. These can be organized by an outside firm too.

5. Applicant Screening

New applicants can be screened for unseen issues like financial risks, and other potential concerns. Background checks can also be performed by a third party to get an impartial report. Furthermore, it becomes more difficult to accuse a business of bias when a third party is performing such reviews. Also, the various tests, checks, and even health physicals are performed by outside parties. This tends to make them more comfortable for applicants who worry about privacy concerns.

HR outsourcing is a useful option for companies not wanting or needing all human resource functions to remain in-house.