Few things are more critical to a company than its employees. When your team member’s needs are taken care of, it not only improves employee morale but also promotes a healthy company culture, boosts retention rates, increases productivity, and so much more.
But not every business has the bandwidth to balance all their human capital needs in-house. It’s why so many companies opt to outsource their HR tasks to outside vendors and consultants. Read on to learn why your growing business will ultimately stand to benefit from outsourcing your human capital needs.
What is outsourced HR?
Third-party HR firms and consultants oversee every aspect of human capital management for your growing small business, including hiring, benefits, payroll, leadership development, employee handbook creation, workforce planning, and more.
Why should your company outsource HR?
While it might seem counterintuitive to let a third-party vendor step in to handle something as interpersonal as HR, outsourcing human resources doesn’t have to jeopardize the human touch of your business.
HR management is an incredibly multifaceted and complex job. Small businesses usually have one individual who processes payroll and assumes the role of HR manager, despite not having received formal training or education in the field.
Outsourced HR companies oversee these critical administrative and human capital tasks with expert knowledge and efficiency — like running accurate payroll or administering benefits — so you can stay focused on your people and growing your business.
Who should outsource their HR?
There is no perfect time to outsource your company’s human capital needs, but here are a few glaring indicators your company will benefit from outsourcing HR sooner rather than later:
• Your company prioritizes a disproportionate amount of time and resources on HR over other critical business needs and processes.
• Your company lacks the financial capital to onboard new employees and cover benefits for a dedicated in-house HR manager.
• Your company’s HR functions are spread unevenly among employees across various departments.
• Your company does not currently have enough in-house HR staff to balance hiring tasks with employee management.
Benefits of HR outsourcing
Outsourcing your company’s core HR functions offers numerous benefits to your organization and employees, including:
• Cost efficiency. While you’ll pay to outsource your HR tasks, your yearly HR outsourcing overheard will come nowhere close to the average in-house HR employee salary.
• Competitive benefit premiums. HR firms have strong relationships with benefits providers. So if your HR firm is attempting to secure a benefits package for your team, they have more staying power to negotiate lower plan rates than your organization.
• Time savings. Partnering with a third-party HR provider will afford your business and employees more time to dedicate to personal, interdepartmental and company-wide goals, boosting your productivity and efficiency as a result.
The bottom line
Whether you’re looking to pass off all of your HR needs or you just need assistance in a few key areas — AssetHR is here to help.
Human Capital Planning is a lot for one person to undertake. We get it. After all, humans and capital are pretty much two of the most challenging things to manage. As a business owner, CFO, or HR head, you know that the balance between humans and capital makes your job feel more like you’re running a family than a business.
That’s where we come in.
Our family business is human capital management — built on putting relationships above everything else. In fact, we only add new accounts when we are 100% sure that we have the time and people to provide the extraordinary service we demand of ourselves.
When you outsource your workday human capital management services to AssetHR, you get a personal, human touch backed by cutting-edge, state-of-the-art capital management technology.
Reach out to us today and one of our human capital management experts will get back to you right away.