For organizations looking to free up time, save money, and streamline their processes, HR outsourcing can be an excellent choice. Putting your HR functions in the hands of a professional organization means your workforce will be able to focus on what’s most important to your company. That way, you can rest easier knowing that all of the risk-management aspects of HR are getting the attention they need.
However, not every aspect of HR is suited to be handled by an outside company. Sometimes face-to-face interactions and intimate knowledge of your team members are critical to the success of your human resources department. In those instances, you will want an internal liaison to take the reins.
Let’s look at when you should outsource HR, how it can help your company thrive, and why you should still maintain an in-house HR liaison.
The Benefits of Choosing to Outsource HR
Here are just a few major reasons you should consider outsourcing your HR functions to a professional human resources organization.
It Will Save Your Business Time
Having an HR department that runs like a well-oiled machine is crucial to the success of any organization. HR requires the effective management of everything from payroll and taxes to compliance and benefits administration—and more.
Performing all of those tasks while also trying to run a successful business can be overwhelming. When you outsource HR functions, you take those responsibilities off your plate and place them in trusted hands, which means you can focus on achieving your company’s goals.
It Will Help You Economize
As your business continues to grow, your HR team will need to grow along with it. At a certain point, the cost of managing all of your HR functions can become significant—especially for a department that does not generate any revenue. Choosing to outsource HR can help to reduce those costs significantly. That includes everything from training costs to payroll costs to the cost of employee acquisition and more.
It Will Ensure Compliance
Risk management is an important issue for all growing businesses. As your business grows, it becomes increasingly more complex. It can be hard to stay on top of the constantly changing regulations that companies must follow. Ensuring that your organization remains compliant with all laws, rules, and regulations—local, state, and federal—can eventually become overwhelming. Outsourcing your HR functions is one of the best ways to ensure that this tremendous task gets the attention it requires.
How an Outsourced HR Department Can Help Your Company Thrive
As your need for a larger and more complex HR department grows, it can be increasingly difficult to focus on your organizational goals. You will have less time to focus on your company’s growth, whether because you spend more time hiring HR professionals, more resources developing your HR team, or more energy putting out fires.
When you outsource HR functions for your business, you can focus solely on what your company needs to thrive and grow.
Why You Still Need an Internal Liaison
Although outsourcing HR can help your company in various ways, it’s still important to maintain an in-house HR liaison to bridge the two organizations. An outside company can be great for managing tasks like payroll, taxes, and benefits, but when it comes to the more interpersonal aspects of HR, you will want someone who knows your staff more intimately.
An in-house HR employee who knows your workforce personally is better suited to accomplish specific HR tasks. That includes any face-to-face interactions and the organizing of social events, team-building exercises, and office initiatives designed to develop culture. In other words, leave the more technical stuff to the HR partner and keep the more personal things in the office.
What to Look for in an Internal Liaison
A great internal HR liaison will be a people person, not a people pleaser. Remember, your HR liaison will have to play diplomat between departments and between employees. For those purposes, they will need a bit of objectivity.
Beyond having strong social skills, they should also have excellent organizational skills, good time management, and remain up to speed with all of the various functions of HR. To some extent, they should know what HR tasks you’re outsourcing.
How to Find the Right HR Partner
Countless organizations offer HR services, but not every one of them will be the perfect one for your business. You need to seek out a partner that is in tune with your specific industry and knows the current compliance issues relevant to your company.
It’s also important to inquire with any potential partners about the specific services they provide, as not all third-party HR partners offer what your organization needs. If you find a partner who checks all of your boxes—and they are within your budget—then you’ve likely found a terrific match.
Looking for the Perfect HR Partner?
Asset HR can help! We offer comprehensive professional HR services with a human touch. Contact us online or call our offices today to learn more.