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What Are Some Benefits To Outsourcing Your HR Department?

What Are Some Benefits To Outsourcing Your HR Department?

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Is your Human Resources (HR) department overwhelmed with compliance issues and complex programs? Are you, the business owner, taking time away from running your business to deal with payroll issues or other HR issues, when you should be working for your clients? Are any of your valued employees stuck doing the same? If you answered yes to any of those questions, you owe it to yourself to explore the possibilities of outsourcing your HR department.

There are several benefits to outsourcing your HR department. Your exact benefits depend on how large or small your company is, and whether you outsource just one or two HR processes, or you decide to go all in and outsource the whole department, and participate in a Professional Employer Organization (PEO). Many smaller companies find handing over all HR processes to a PEO really frees them up to grow their business instead of worrying about filling out forms for the IRS.

General Benefits of HR Outsourcing

  • Cost Savings
  • Reduce the Number of HR Staff and Related Expenses
  • Allow Existing HR Staff to Focus on Strategy Rather than “Grunt Work”
  • More Time to Devote to Your Customers / Work-Life Balance
  • Improve State and Federal Compliance
  • Streamline HR Processes
  • Gain HR Services You Don’t Currently Have or Provide

Unless you are a large corporation with a large HR department with decades of expertise, your organization can save time and money with HR outsourcing.  When you partner with Einstein HR, you get more time to focus on your core business. We do what we do best and you do what you do best. It’s partnership at its finest.

Freedom to Tackle Other Business Needs

Even if you have a Human Resources department, outsourcing certain HR functions allows your HR personnel to focus on core issues like recruiting, hiring, and handling day-to-day employee issues.

To be clear, even when you partner with a PEO like Einstein HR in a co-employment agreement, you maintain control of your employees – you do the hiring and firing, performance reviews, day to day guidance, etc. We handle the Payroll, Tax Compliance, Social Security, Unemployment, Workers Compensation, Garnishment of Wages, Employee Benefits and more. We become the employer of record as far as W2’s, issuing payroll checks, ensuring compliance with tax laws and regulations, etc.

The Society for Human Resources Management (SHRM) notes that the most common HR functions that businesses large and small turn over to a PEO or outsourced HR administrator are:

  1. Background checks
  2. Employee assistance and counseling services (EAPs)
  3. Flexible spending account administration
  4. Health care benefits administration
  5. COBRA administration
  6. Temporary staffing
  7. Pension benefits administration
  8. Retirement benefits administration
  9. Employee relocation
  10. Payroll administration

What Does Hiring a PEO Cost?

Your actual cost depends on the pricing strategy of the PEO, and how large or small your organization is. Outsourcing your HR processes to a PEO will generally save you more money than what it costs you to pay them.

This is because you save more than just the wages of HR staff. You save in:

  • Benefits administration costs
  • Health insurance costs
  • Unemployment costs

One of the greatest benefits of hiring a PEO is risk management.  You could see reduced workers compensation costs, payroll errors, unemployment costs, fines for non-compliance, and more. You may also have access to additional services you don’t currently have, including:

Of course, before outsourcing your HR department, you’ll want to meet / get quotes from several PEOs. Find out what other local organizations they work with, and check their references, just like you would do for any major expenditure. How long have they been in the HR business? After getting quotes and asking any questions you may have, decide who will best meet your HR needs, and who you would like to form a partnership with.

If leaving the headache of payroll, employment compliance, and dealing with Workman’s Compensation to someone else to handle sounds attractive to you, fill out the contact form or call us at 770-962-1700 to get a FREE quote! Einstein HR provides a full line of HR services to small and medium-sized organizations throughout the greater Atlanta metro area. If you have an HR issue, chances are that we’ve run into it before and have proven solutions to help you resolve it. Get in touch with us today!

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