HR Outsourcing And Its Role In The Success Of Small Businesses

For many small businesses, keeping cost down isn't an option, it's a must-have. One way small businesses are doing this is through outsourcing. Especially for areas of their business that aren't revenue drivers. One example of this is HR (Human Resources). HR doesn't provide any direct revenue to the business, and it isn't a core competency. That makes it a great candidate for outsourcing.

HR Outsourcing allows businesses to scale into an HR department. Running an HR department from day one can be a big drag on earnings for a small business. There's a lot of administration that goes into running an HR department. Employees within the HR department aren't contributing directly to revenue. By removing the entire HR department over to a company who specializes in HR, a business can realize immediate benefits in reduced overhead (both in cost and time).

There are different types of HR outsourcing providers - some offer bundled packages, which can be costly and offer services that may not be needed. Others allow businesses to choose and pay for specific areas they'd like to outsource. Pay structures range from a flat monthly fee to a percentage of employee salary.

When choosing an HR provider, allowing your employees to have web access to their payroll information is important. Not all providers have this ability. If web access isn't provided, employees usually have to call the provider. Not the best experience. In addition to web access, you may want to provide mobile access to employees. Providers offering web access will usually offer mobile access as well.

What can you outsource to an HR provider? The cloud has made a lot of outsourcing possible and brought pricing of HR outsourcing services down. The list is long but below are a few popular areas that small businesses are outsourcing: 

  • Payroll
  • Taxes
  • Benefits
  • Recruiting 
  • Training
  • Performance Reviews
  • Access Payroll Info Through Website
  • Chat

Let's go over some of the items in the above list. Companies have been outsourcing payroll for a number of years now. It's the same for taxes. Often taxes are done through an accountant. If you don't want to use two different services, you may be able to save by finding a provider who does payroll and taxes.

Benefits management related to 401(k) administration and health insurance are commonly outsourced. There are HR providers who specialize in those two services only. Both are complex topics. Finding a competent provider will be critical in setting up the right 401(k) plan for your company and offering healthcare insurance at an affordable price.

Chat is an important feature because of its convenience. You may not want to wait on the phone for an HR rep. Companies offering chat provide an alternative to phone hold. Also, chats are logged and can be emailed to the customer upon request for later review.

How HR Outsourcing Relate To VoIP, UCaaS, And CCaaS

Many of the companies that you'll outsource HR functions to have call centers. These call centers utilize VoIP, UCaaS, and CCaaS to run their operations. Of the three mentioned, UCaaS and CCaaS are the most popular.

Let's look at an example of how that works with an HR provider. The functionality is similar to any call center utilizing cloud communications technologies. When one of your employees calls the HR number to talk about their 401(k), the call is routed to an available rep who specializes in 401(k) services. The HR provider may offer several services so getting to the right rep is critical. The integrated CRM pops up the employee's details for the rep to view. There is also integration with the back office 401(k) plan software. The rep can see the same 401(k) information the employee is viewing through the HR provider's website.

For recruiting and training services, HR reps can use video, which is part of the call center's unified communications services. Using video for recruiting and training provides for a much better experience than telephone only. These services are usually done in person. Companies want to retain a similar quality and feel as an in-person interview.

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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