How HR Outsourcing Is A Competitive Business Advantage
HR Outsourcing Benefits Can Strategically Make A Difference
There are many companies that are looking at reducing their expenses and improving their efficiency to remain competitive. One way to evolve into a leaner management is to consider moving expense areas that are not the core of the business. For example, managing human resources is necessary, but typically not the core business offering. HR outsourcing has many benefits, including reducing employee-related expenses and minimizing employment risk.
Especially in a competitive economic environment, the opportunity to look for ways to assure best practices for human resources while reducing overhead expense can make a company strategically have the advantage.
Reduce Employment Expenses And Employment Risk While Having Best In Class Services
The cost of labor and employment expense amounts to a large operating expense for most businesses. The expenses of managing and being in compliance with payroll and tax overhead is only part of the operating expenses. Health insurance premiums, workers’ compensation insurance, recruiting fees, payroll processing, and human resources legal fees all must be managed as well.
Human Resources Outsourcing is growing as a popular option for companies to manage their hr. the benefits of outsourcing human resources are numerous, particularly for charter schools, startup ventures and for mid sized businesses.
The way a human resources company can reduce costs is by offering a team of human resource professionals who understand human resource best practices and who act as your human resource department handing employment concerns.
Some of the benefits of outsourcing HR include savings in Worker’s Compensation insurance premiums, reduced cost of group benefits including health insurance costs, reduce expense for employment practices liability insurance, reduced employee litigation and consequent legal fees. Some of the benefits of outsourced human resources also includes improvement to employee morale, greater job satisfaction, better match between worker skills and position, and improved HR infrastructure and systems.
Minimized Employment Risk Is Huge In A Litigious Economic Environment
During difficult economic periods there are increased risk of employment related lawsuits. Knowledge of changes to complex HR laws may be difficult as an employer to monitor and stay on top of. If you outsource to an HR Outsourcing firm you have the benefit of HR experts.
With so many changes on the State level and Federal level to employment laws, there is a greater need to be aware of changes to Human Resource and labor related legislation.
A Human Resources company should be able to provide:
- Assures updated policy manual is in place
- Updates forms, postings and required HR documentation
- Assures compliance for payroll regulations
- Trains managers regarding appropriate termination procedures
- Audits and assures compliance for employment files and records
- Implements OSHA compliant safety plans
- Handles employee complaints or grievances
- Audits human resources practices and policies on an ongoing basis
What are your concerns with your HR policies. Do you feel your organization does a great job staying on top of Human Resources initiatives and legislative changes? What resources do you use to assure compliance.
HR Knowledge is a provider of integrated HR, payroll and benefits services. Our offices are located in the Boston, MA metro area and we service companies throughout the United States.