Among companies looking to cut costs without compromising efficiency, outsourced human resources has become one of the most common options. According to research by the Society for Human Resource Management, OSR can cut at least 25% of your HR budget, without substantial reductions in quality.

While an operation will always require some in-house HR functions, many of the commonplace HR tasks can be effectively outsourced with very little impact to your productivity. In this article, we’ll discuss the benefits of outsourcing aspects of your HR, and which functions can be easily moved out-of-house.

Why Outsource Human Resources?

In the right circumstances, outsourcing HR functions can be highly beneficial for companies of all sizes. Beyond the immediate cost savings, you’ll see other benefits as well:

1 – Refocusing your internal HR tasks

In short, by moving many of the procedural and bureaucratic functions off-site, that frees up your own team to focus on the needs of your business and workers. This can lead to substantial morale boosts across your operation, and fewer incidents stemming from HR disputes.

2 – Low-cost HR expansion

If your administrative team is at or near capacity, and feeling overworked, outsourcing HR functions makes a lot of sense. It allows you to have a larger HR team at your disposal, while avoiding many of the costs associated with hiring and compensating new in-house employees.

3 – Having specialists on-call

Should a tricky legal or compliance issue arise, or you feel legally vulnerable, you may not have sufficient talent in-house to tackle the challenge. Professional HR outsource firms specialize in having expert talent who are capable of protecting your operation.

4 – Streamlined workflows

Outsourced HR firms typically have robust electronic infrastructures which are often more efficient, or offer more features, than what a company may have in-house. This can boost employee morale, by seeing faster resolutions to their issues such as payroll questions.

5 – Improved benefits

Most outsourced human resources firms also have ties to major benefit providers, such as insurance companies. In many cases, this can give you access to improved benefits which you would not be able to obtain on your own. When worker retention is a challenge, being able to offer superior benefits will help keep your workers happy.

How Can Outsourced Human Resources Help You?

I. Compensation and Benefits

Probably the most common sourced HR service is payroll, compensation, and benefits. Payroll calculations and deductions can be difficult and time-consuming. Likewise, managing your employees’ health and insurance and other benefits, while maintaining legal compliance, requires significant time and manpower.

Dealing with employee questions and disputes can also be a significant drag on your administrative team’s productivity.

Outsourced HR services are capable of handling these services on your behalf, quickly and efficiently. Their experts will be able to handle complicated cases, and significantly reduce the chances of payroll/benefits disputes or legal actions.

II. Legal Compliance

The maze of legal regulations covering employment and compensation only become more complicated every year. Does your HR responsible staff have the time, energy, and resources to keep up with changes in regulation and maintain your compliance?

For many companies, this is the biggest reason to outsource their bureaucratic HR functions. A company which specializes in HR services will be in a superior position to ensure your operation is always operating within the law. In turn, this can prevent worker’s comp lawsuits, Equal Employment Opportunity (EEO) disputes, IRS audits, and more.

Hiring outsourced human resources experts is an insurance policy that prevents disruptive and expensive legal issues before they can become a problem.

III. Handbook/Policy Creation and Maintenance

When an outsourced HR company already has access to the most up-to-date information on legal requirements and compliance, it only makes sense to allow them to set your policies. An outsourced HR provider can produce a handbook which is fully compliant with the law, and will also have the tools at their disposal to keep that handbook properly updated across years to come.

This will further reduce your legal liability, and ensure that your employee policies are always compliant. Employees will also have faster access to HR experts, should they ever have questions about their rights and responsibilities.

Are Outsourced Human Resources Services Right For You?

A growing number of companies are discovering that outsourced human resources simply make sense. It takes difficult and time-consuming bureaucratic services and shifts them off-site to specialists who are better able to provide those services. You see cut costs, improved process flows, and – in many cases – improved internal morale.

From small to large-sized businesses, there’s an outsourced human resources solution that will fit your needs. GO Admin Solutions offers affordable outsourced human resource services for small-to-medium sized businesses looking to excel! Please contact us to learn more about how we help business-owners like you create a solid foundation for your operations.