Should You Outsource HR for Small Business?

As your business grows you're going to need to delegate and outsource certain tasks to maintain your trajectory. In some cases, it might make sense to outsource entire departments, like HR.

Your human resources staff is responsible for creating an excellent company culture while fostering company loyalty, among many other tasks. But, having a competitive HR staff can provide difficult for some companies. 

However, by implementing HR outsourcing you can cut costs while retaining a high-performing and useful HR staff. But, is it the right move for your business?

Learn what HR outsourcing is, the benefits it can bring your business, along with the types of software required to effectively make this transition.

What is HR Outsourcing?

Do you really need an internal HR staff? Or can you outsource most of your HR tasks to a third-party provider?

A solid HR department will help to ensure your employees get paid on time, your maintain business compliance, employees are hired and brought on the right way, and that your current employees remain satisfied with their jobs.

Still, it's not necessary to accomplish all of these tasks in-house. You can effectively outsource a wide range of HR tasks, which will allow you to reduce the size of your team and free up your staff for more valuable strategic tasks.

For example, the HR tasks highlighted below can effectively be outsourced:

  • Employee payroll services
  • Healthcare benefits and 401k services
  • Employee training programs (can be done online)
  • Compliance and monitoring

There are multiple options for HR outsourcing, but the most common approach involves deciding which non-essential tasks you can outsource to different providers and finding the best provider to fill that need. In some cases, you might be able to find a firm that can handle all of your required HR tasks. 

The Benefits of HR Outsourcing

HR outsourcing can help to cut costs, while streamlining your organization. By outsourcing the right tasks you can greatly reduce the size of your HR staff and reinvest these savings into other departments.

Here are the most common benefits you'll receive when you outsource HR for small business:

1. Cost Savings

By outsourcing the bulk of HR tasks you can minimize the number of HR staff you require, along with training, and office space. Outsourcing costs are generally much cheaper than maintaining a staff of full-time employees.

2. Built-in Compliance

If you're using a third-party communications provider you might be concerned with compliance. Especially where sensitive customer and employee data is concerned. However, most third-party providers offer fully compliant solutions. This will accelerate compliance on your end by reducing the number of compliance-related tasks. 

3. Achieve Higher Levels of Productivity

Maintaining a productive workforce is incredibly important. By outsourcing non-essential HR tasks you can rely on the software and services provided by a high-quality provider. This will free up hours spent doing paperwork, and tasks that can be handled by software and third-party teams. 

At the core, the goal of HR outsourcing is to streamline your company-wide workflows and help to cut costs. By learning how to outsource HR for small business the right way you can do just that. Instead of a massive HR team, you can get by with just one or two employees. 

Software Required for HR Outsourcing

The biggest software requirement for outsourcing your small business HR is going to be communication software. Chances are the vendors you're using for HR tasks will have their own software and processes for accomplishing certain tasks. But, you'll need to be able to effectively communicate with your outsourced providers.

One of the easiest ways to do this is through unified communication software. This will help to unify all internal and external company communication no matter if it's through phones, email, live chat, messaging, text, video and more. 

With a centralized communication hub, you'll be able to readily communicate with any third-party HR service providers. With an integrated solution, it will seem as if your HR department is still in-house. 

The main deciding factor in whether or not you should outsource HR depends on if you need your staff to have face-to-face interactions with employees. This aspect of the job will be very difficult, if not impossible, to outsource. However, you can still outsource certain HR tasks which will free up your team to focus on more valuable tasks. Plus, you can cut costs and reduce the overall size of your department. 

Your business has enough on its plate. Outsource what makes sense for your business, choose a world-class SaaS technology solution and focus on what's important: your clients. Call 1-866-879-8647 or fill out an online form to request a no-obligation quote from an 8x8 product specialist.

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