There are many reasons more small to mid-size companies are outsourcing their human resources and personnel management functions. Human resources used to be a small part of operating a business, but has become much more involved thanks to complex federal regulations, the growing importance of employee benefits in recruiting and retaining good employees and increasing employer liability.
Employers are finding that they no longer have the resources or internal expertise to handle the multitude and magnitude of issues surrounding their workforce. Between recruitment, onboarding, employee benefits, payroll and training, companies find it particularly challenging just to perform all of the functions, let alone perform them well enough to mitigate the risk of noncompliance.
Keeping up with federal regulations can be a full-time job. According to a recent article, “financial executives found 46% of employers were outsourcing or looking to outsource reporting and other regulatory requirements of the Affordable Care Act, 40% for American with Disabilities Act directives and 39% for Family Medical Leave mandates.”
Once a company decides that Outsourcing HR is the best choice, they should look for the following things when hiring an outsourcing vendor:
Experience working with similar employers (size, industry, range of services)
Demonstrated competence administering the constantly changing regulatory requirements.
Ability to adapt to your company’s unique plan and management policy.
Proven ability to keep your company’s HR costs as low as possible, while still accomplishing your goals and maintaining compliance.
We have been helping companies with the HR needs for over 30 years. Please contact us so we can help you.