HR is the backbone of any business. From hiring to firing and everything in-between, it’s what makes a company run smoothly.
But sometimes, you might find yourself asking: what HR services can be outsourced? The answer isn’t always clear-cut!
You need to consider two things to determine whether an HR task should be outsourced: cost and complexity.
Does the cost outweigh the benefits? Is the task too complex for your team members with limited experience? If both cases are in the affirmative, outsourcing may be a good solution.
Read on for more information about which HR tasks you should outsource and why.
Background Screening
No question hiring the right person for a particular job is essential for your company’s success. But so is protecting your company from potential lawsuits. Background screening can help you do that!
However, there are factors to consider before outsourcing background checks. For instance, if you need a lot of information on potential candidates, it may make more sense to conduct your screening in-house.
However, if you don’t need such an in-depth report on every candidate, then outsourcing may be a more cost-effective solution.
Interview Process
The interview process is another essential part of the hiring process, but it can also be time-consuming. In particular, for small and medium-sized businesses, it may make more sense to outsource your job interviews.
You have to consider the types of candidates you’re looking for when outsourcing this function. If you need top-tier workers, conduct your interviews. However, if you are looking for any warm body willing to accept the position, outsourcing may be more logical.
HR Policy Creation and Implementation
The creation of policies for your company is a complex task. You need to ensure that your employees are trained in the proper procedures. Fortunately, outsourcing can allow you to focus on other areas while still ensuring that all staff members are compliant.
However, consider the cost when determining whether to outsource these tasks. Creating and implementing policies requires so much administrative work. If not careful, you may find yourself spending a lot of money.
Payroll Services
Being involved in payroll can be time-consuming and fraught with legal issues. And for this reason, many small businesses choose to outsource this task.
Outsourcing payroll services will allow you to focus more on other important aspects of your company. You don’t need to spend all your time ensuring that human resources policies are being followed.
However, outsourcing isn’t always the best choice for smaller companies that only have a few employees. Because payroll software is improving, it may make sense to handle in-house.
You can also determine whether to hire a HR service provider by weighing the pros and cons associated with each option. For instance, if wages fluctuate based on performance levels, it may be best to create in-house policies. However, if you’re looking for someone to pay off fixed amounts, then outsource this task.
Wage and Hour Compliance
Federal wage and hour laws are complex and can sometimes lead to incorrect wage deductions and overtime pay. This is why many employers choose to outsource their wage compliance processes.
Although outsourcing will likely cost more than handling it in-house, it can reduce the number of potential violations. It will also ensure that all staff members are paid fairly and on time.
Paid Leave Management
Employers are required by law to provide employees with paid leave time. But, many of them struggle with determining whether they should outsource these tasks.
On the one hand, it can be time-consuming if you’re a small employer and need someone else to handle your employee scheduling.
However, there are also legal issues associated with offering paid leave.
You may find that outsourcing some management tasks will provide your business with added legal protection. It will also ensure that employees receive paid time off whenever they are eligible.
Employee Benefits Administration
Employee Benefits Administration may include anything from tracking benefits enrollment to facilitating health plans. This can be incredibly complicated, which is why many companies choose to outsource this task.
Unfortunately, outsourcing benefits administration can sometimes lead you into murky legal waters. There are many laws in place regarding insurance and retirement funds. So, you must do your research before hiring a third party to handle human resource support.
Workplace Safety Programs
Workplace safety has legal and financial benefits. However, it can also be time-consuming if handled in-house. For instance, employers must employ staff who will ensure that all employees have appropriate safety certifications and training.
The best way to handle these tasks is unclear since many small businesses cannot afford the necessary training. In that case, it may be beneficial for employers to outsource these services. Allowing a HR support team to handle their facility’s safety programs on a full-time basis can even provide you with added legal protection whenever an accident occurs.
Retirement Planning
Retirement planning is another aspect of employee benefits that can be incredibly difficult for small businesses to manage in-house. As a result, many employers choose to outsource this task.
Although outsourcing your retirement plans will cost more than handling these tasks yourself, it may help you save time and money over the long run. You won’t consistently have to struggle with managing the needs of employees who are near or past retirement age.
Outsource These Key HR services
Outsourcing HR services is a great way to save time and energy when managing your employees. However, before doing anything, always speak with an expert contractor specializing in these tasks since many laws govern this field.
Eventually, you may decide that outsourcing a particular task is the best option for your business. However, it’s vital to remember that hiring HR support will lead to added fees.
For more helpful tips and tricks, visit our business section.
