Outsourcing Human Resources: A Guide to HR Services

Whether it’s a small business or a large organization, human resources are fundamental to all companies. Outsourcing HR services can have a positive impact on a business. Benefits include staying compliant, work efficiency, and reduced costs. Here is a guide to the HR services you can outsource as a business.

Internal HR

HR may not directly generate any revenue, but it is a fundamental part of a company. A fully-fledged HR department can be a costly affair. According to the U.S. Bureau of Labor Statistics, hiring a human resources specialist could cost you around $61,920 per year, while the annual salary for an HR manager is $116,720, on average. If costs are not an issue, there are a few benefits to employing an in-house team. You can keep track and monitor HR on a daily basis and communicate with your team whenever you want. You can also be assured that your HR department will have a sole focus on the company’s needs.

External HR

With high salaries and a lack of resources, it can be unrealistic for small businesses to employ a full HR department. However, some companies still prefer to have a small, in-house HR team and choose to outsource specific functions to a third-party provider despite the costs. A small team of HR employees may not be able to cover all the HR services your business requires. Outsourcing certain services can relieve in-house staff from an exhaustive workload and enable them to focus on specific HR functions and produce quality work in these areas.

Small businesses with a growing workforce require more HR personnel. HR services cover many aspects of a business and require skilled experts with industry know-how. G&A Partners are one of the HR consulting firms Minneapolis companies prefer. They provide personalized HR solutions to help businesses manage their HR needs. Outsourcing your HR to a third party can help develop your workplace and grow your company. It can also free up your team’s time so that they can streamline their existing processes and strategies.

Commonly Outsourced Services

Payroll Services

Payroll is a common service outsourced by small businesses. It involves calculating the time worked by employees, accurately allocating wages, extracting taxes from each individual, and complying with regulations in relation to payroll-related laws. A growing workforce can benefit from an HR consultant. HR outsourcing agencies utilize sophisticated technology to keep track of all aspects of payroll. This particular service requires a large amount of paperwork and takes a lot of time and concentration. Outsourcing this service can free up your time so that you can work on other aspects of your business.

Employee Relations

To keep an organization running smoothly, a positive and safe environment built with trust needs to be in place. By creating and maintaining positive employee relations, workers are more engaged, and their level of job satisfaction is higher. It is up to HR to maintain a good relationship between employees and the organization. HR is also responsible for dealing with any grievances and complaints employees may have and resolving disputes. Outsourcing this to a third party enables you, or your existing HR team, to take a step back from the day-to-day challenges of employee relations. External providers specializing in employee relations can address issues quickly and create a conflict-free work environment.

Recruitment and Staffing

The HR department is responsible for recruitment. This includes advertising the job role to attract the right people, collecting resumes, selecting potential candidates, scheduling interviews, and hiring suitable employees. Recruitment and staffing are important steps to a successful business. Outsourcing this service means that your new recruit will be selected by a highly qualified HR expert with quality resources. Employing an HR specialist will ensure you have the best chance to employ a valuable team member who fits the bill. Employee computer monitoring software is too essential to track employee working status.

Compliance

With so many aspects of running a business, it can be difficult to keep up to date with regulations and legislation in employment. If you happen to be caught unaware by an unexpected law change, you could run the risk of accidental non-compliance, which could lead to financial penalties. External HR providers are experts in their field, meaning that they are up to date with law changes and legal requirements. In addition, HR consultants know exactly what steps to take to ensure your business is compliant and can implement requirements efficiently and effectively.

Training

HR is responsible for training employees; this can include sexual harassment training, health and safety, and specific, departmental training. It is up to HR to ensure all employees receive adequate training in the workplace. Companies made up of a diverse workforce with varying needs can benefit from outsourcing their training needs. An in-house team will be unlikely to cover all aspects of training. External providers can help your business with large-scale roll-outs, one-off training, and specific training which requires a high level of expertise.

Other HR Services

Onboarding

Onboarding describes the process of introducing a new employee to a company and ensuring they settle in well. The process involves integrating new recruits into a company and ensuring they understand their new job role and what is required of them. Depending on the company, this process can last from a couple of weeks to a couple of years.

Healthcare Benefits

HR is responsible for handling employee benefits, such as health insurance and healthcare plans. Tasks include enrollment, renewals, audits, and employee benefit terminations.

Compensation

The HR department is responsible for handling any employee compensation claims which may arise at work. HR are required to keep on top of the medical care available for employees, the treatment of sick and injured employees, and policy renewals.

Employee Screening, Background Checks, and Testing

HR personnel is in charge of performing background checks and screening potential candidates for a job role. HR needs to ensure the candidate’s profile ticks all the boxes for the position they are going for. This could include physical checks and drug screening. In addition, once an applicant makes it through the initial interview process, it is up to HR to test applicants to ensure they have the necessary skills for the role they are applying for.