At Tenkey, we understand that running a small business can be tough, especially in the beginning. Many business owners find themselves wearing multiple hats, from CFO to CEO and everything in between, including human resources. While this may be necessary at first, it’s not sustainable.
As your business grows and you hire more employees, you may find yourself in need of a more robust HR department to avoid potential problems. Instead of staffing HR internally, many businesses have turned to a growing and effective trend: outsourcing the department. Outsourcing your HR department can help you avoid or resolve a variety of issues, including the following five.
1. Outsourcing Reduces Costs
According to some sources, outsourcing can help cut HR costs by 20% to 30%. The average HR manager earns more that $75,000 a year, and that’s not including benefits. A small or medium sized business could be spending hundreds of thousands of dollars on HR, depending on the staff size.
When you outsource the department, you spend far less on salaries, reduce the costs of employee benefits, and reduce the costs of hiring and training. Hiring an expert HR team can also help you avoid expensive penalties for non-compliance with employment laws and regulations, as well as spend less time worrying about it and more time increasing profits.
2. Outsourcing HR Can Free You Up to Focus on Core Business Processes
One of the many reasons business owners are outsourcing a number of positions these days is to maximize their time management. Besides the fact that being stretched too thin can lead to mistakes and poor physical and mental health, it also prevents you from focusing on what’s most important: your core business processes. Whether you are a doctor wanting to focus on provided top-notch medical care or a mechanic focused on fixing and maintaining vehicles, outsourcing HR allows you to do what you do best and not get bogged down by logistics.
3. Outsourcing HR Can Mitigate Legal Risks
An inexperienced HR manager or department may be more likely to make mistakes, but hiring an experienced manager may also be too costly. Outsourcing HR functions serves as a nice middle ground. You get all the experience for a fraction of the price.
This ultimately helps mitigate your legal risks as a business owner, whether it be a worker’s rights compliance issue or something even more serious. At the end of the day, putting your trust in people who are more familiar with employment law and HR practices can give you peace of mind.
4. Outsourcing HR Can Improve the Hiring Process
Our team has the skill and experience to develop an efficient hiring process for your business that attracts top talent. From the initial job description to the actual interviews, hiring outside HR professionals helps streamline the process. Once we bring an employee on board, we can also implement training procedures that allow them to assimilate quickly and hit the ground running.
The money you save by outsourcing HR can also be used to attract qualified candidates searching for a job that not only pays well but offers ample benefits too. In other words, outsourcing HR allows you to match or exceed the benefits packages of your competitors, ensuring you do not lose top talent due to such issues.
5. A Third Party Can Improve Overall Employee Happiness
Better benefits don’t just attract better employees; they keep them happier in the long-term as well. Employees that know their company cares enough about them to provide excellent wages and comprehensive benefits also tend to be more productive and loyal. They feel appreciated, and in turn, your business flourishes. It is a win-win all the way around, and it all starts with a good Human Resources department.
Call Now to Learn More About Our HR Services
Find out how our HR services can help take your business to the next level! Call 971-220-6416 or contact us at Hello@tenkeyllc.com today!
