More and more companies and business are starting to outsource their human resources, and for good reasons. Instead of having an HR department internally many companies are contracting out this department. This is becoming a growing trend, and what was once thought as unusual is becoming the norm.
Below are five reasons why outsourcing HR is a good idea.
-“In recent years FMLA, ADA and now Obamacare have made compliance a series of flaming hoops to jump through” (job science). With this said, it is easier, more efficient, and safer to outsource to do all of the HR work. Formally, internal HR had a handful of individuals working within the company. Now, by outsourcing HR it is a call center type job where dozens and even hundreds of calls can be answered per day. Thus, increasing productivity.
-Outsourcing minimizes cost, and increases productivity. The biggest part here is saving money, surprising right? What company wouldn’t seize the opportunity to pinch pennies if they could. Outsourcing HR is an amazing way to cut down on costs.
-Outsourcing HR to focus on strategy. Companies can really spread themselves thin when they are focusing on all of the administrative tasks. By outsourcing HR, businesses can focus more on strategy and planning for their business.
-Compliance, compliance, compliance. In this day and age, so many people will jump at the opportunity to sue a company or individual. Therefore, it has never been more important to adhere to compliance and regulations. It is very challenging to to stay in compliance, so by outsourcing HR, risk is minimized because requirements are met and understood by HR employees.
-Last but not least outsourcing HR improves accuracy and results. By having a call center or office with people trained on the exact same thing there exists fluidity within HR. Most companies already have too much on their plate, so a lot of the time the administrative dealings can fall to the wayside. By outsourcing, the job is given to individuals who only deal with the HR side of things, therefore, improving accuracy and consistency.
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