10 Myths Busted About Outsourcing Your HR

Posted by Derek Carlstrom on October 28, 2019 at 10:18 AM

10 Myths Busted About Outsourcing Your HR

Have you thought about outsourcing your HR functions but are unsure because of outdated or inaccurate information? Human resources has a lot of moving parts, and handling it with efficiency is critical. Before making any decisions based on what you’ve heard, here’s a list of 10 myths about outsourced HR. Have you heard any of these?

“I will lose control of my business.”

This is not true. Not only will you have total control, but you will call all the shots. With outsourced human resources, you gain more control because your processes will run smoother, you’ll work smarter, have better technology and be more compliant. When you decide to outsource your HR, you are partnering with experts who will help and guide you so you can focus on growing the business.

“My business is not big enough to need outsourced HR.”

Outsourced HR providers can liberate time and provide skilled resources and best-in-class technology. The unique offerings of a Professional Organization (PEO) can assist your smaller organization in attracting and retaining talent. This will help your business effectively compete with larger employers.

“Outsourcing my HR will compromise my company’s security.”

Your outsourcing company should take protecting your customers as seriously as you do and guard all proprietary and private information with proper security protocols. It’s essential to look for an outsourcing company with at least three layers of security and established procedures for handling sensitive information.

“Outsourcing my human resources is too expensive.”

Outsourcing HR is usually less expensive than trying to hire part-time employees or look for contractors to take on these tasks. Regardless of your company’s size, you will actually save money.

“You can’t fire or hire employees if you outsource your human resources.”

Again, you are in total control – even when you outsource your human resources functions. You are the one who has to work with the employees, so you will be the one doing the hiring and firing.

“My employees won’t like the change.”

Generally, employees are pretty excited when companies make the switch. They will have more features, better technology and more choices. These are positive benefits that get them on board. And … they may save money, too.

“Outsourcing my human resources will affect my company culture.”

The burden of many administrative tasks is reduced, which provides more time and energy that can be geared toward enhancing the company’s culture. Outsourced HR can actually enhance your culture by taking on all the administrative tasks that limited growth of the company culture. Now, there will be time for a deliberate focus on improving the culture.

“Setting everything up is going to take forever and be very complicated.”

When you work with the RIGHT partner, you will find your processes and systems more efficient while the workload is lessened for those who were overwhelmed in these tasks.

“My office admins/managers can do the work the outsourced HR professional could do.”

The HR laws and best practices are ever-changing. It is essential to always be up to date on the latest standards. An outsourced HR company provides up-to-date certifications and trainings that your office managers and administrators probably don't have the time to take or the extra budget to be re-certifying themselves constantly. By outsourcing your HR, you can be confident that you are working with a well-informed partner to keep you on track with your HR practices.

“I don’t want to have to fire my HR employee(s) because we hired an outsourced HR company.”

Generally, a PEO is able to provide internal staff (including HR staff) with the tools that will make things far more productive while gaining access to the support they need.

By working with a reputable outsourced human resources company, your functions and processes will become easier – not harder. Hopefully, you’ve been able to realize the value of outsourcing your human resources tasks and can put some myths you’ve heard to rest.

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Topics: Outsourcing HR / PEO

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Here, you'll find educational resources, best practices, and business tips created for business owners and leaders. We cover topics including human resources management, PEO, compliance, risk management, staffing, and more. Learn more about Questco here.

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