For many business owners, managing the cost of having employees, and the challenges that come with being an employer, can be overwhelming. Think of all the time spent on dealing with employee issues. For employers who don’t have a dedicated human resources department, this time can take away from productivity and growing the business. Here are five ways an HR services company can help your business grow.
#1 Outsourcing HR Frees up Time
Having the right employees in the right positions is key to office efficiency. For example, if you hire an office manager who’s great at customer service and managing the books, and then expect them to be an expert in HR, you may find the person is spending too much time trying to learn the unknown. Having team members set aside their essential duties to manage tasks in which they do not excel is a waste of valuable time. An HR services company has teams of HR professionals to relieve you and your staff of many of the burdens associated with being an employer.
#2 HR Services Companies Reduce Risk
Because state, local and federal laws and regulations are constantly changing, it’s important to be able to rely on someone to stay up-to-date and understand all the complexities of employment law. Just one employee lawsuit for non-compliance with certain regulations could be enough to put a small company out of business. An HR services company has a team of experts to guide you in resolving issues as they arise. These companies also provide employee benefit administration for compliance in that arena.
#3 Outsourcing HR Helps Recruit Better Talent
One of the main responsibilities of HR is recruiting and hiring new employees. Conducting interviews to find the right candidate, and then performing background checks can be time consuming and tedious. Some HR services companies handle the recruiting and hiring process from start to finish, while others provide guidance and advice to their clients and help with tips and tools for creating job descriptions. An accurate job description is vital to attracting the most qualified candidates and setting appropriate expectations.
#4 HR Services Companies Reduce the Cost of Labor
HR services companies have certified experts to help with tasks like:
- Reviewing Payroll
- Administering Benefit Packages
- Covering Employees with Workers’ Compensation Insurance
- Providing HR Support
These professionals help employers reduce the cost of maintaining employees because they know how to identify areas where policies and procedures can be improved and costs can be cut without reducing the value you provide to your employees. Even for a relatively small business, this can translate to savings of thousands of dollars per year.
#5 HR Services Companies Can Help You Retain Employees
Employees need strong HR support just as often as employers do. When HR is too overwhelmed to address an employee concern, or can’t find an appropriate solution, employees can become frustrated. This can increase turnover as employees leave to find a company that can better accommodate their needs. HR Services companies have the time, resources and knowledge to help get to the bottom of employee issues or challenges.
HR services companies also provide employee benefits like medical, dental, vision, life insurance, disability insurance, supplemental insurances and retirement savings. In some cases, partnering with an HR Services company is the only way a small employer can afford to offer benefits to employees.
When you have someone managing the essential tasks of being an employer, you have peace of mind and more time to focus on growing your business. One option for outsourcing HR is partnering with a Professional Employer Organization (PEO). A PEO provides access to an experienced team of professionals in HR, benefits, payroll, insurance and other aspects of employment.
Advantages for Employees
- Delivers on-time and accurate payroll
- Processes claims efficiently and responsively
- Provides online access to payroll information, benefits, personnel data, vacation and sick time accrual
FrankCrum, a Clearwater-based PEO, provides long-term HR solutions for employers of all sizes. Our customer service is second to none, and with us, you’ll receive more than just a call center with a dedicated Payroll Coordinator and Manager, Client Account Manager and Benefits Account Manager.
To learn more about how FrankCrum can benefit both employers and employees, call 1-800-277-1620.