Many businesses are already working with one of several types of outsourced HR solutions: payroll processors, Administrative Services Only (ASO) providers, or Professional Employer Organizations (PEOs). But are you using the right outsourced HR solution for your needs?
It's important to evaluate whether your current solution is giving you the most benefits and delivering on your expectations. Below are five questions that will determine whether you are getting the most out of your HR outsourcing.
An outsourced HR solution should be able to demonstrate a positive ROI. Thanks to your partnership with an outsourced HR provider, you can avoid the cost of hiring additional employees and instead lean on your partnership to help the existing workload.
The cost and quality of benefits should alter significantly since you'll be able to access your HR partner's plan instead of having to build one without any economies of scale.
With the relief of the administrative burden, your internal team will be able to focus on tasks that help to build a better company and handle the immediate needs of your clients and internal employees. This relief increases productivity which translates directly to growing your bottom line.
Outsourced HR solutions are structured to give your employees access to top quality benefits plans that your company and your employees might otherwise not have been able to afford.
The benefits your company offers has a substantial impact on your employees. Top talent in your industry usually has a good idea of what benefit options are out there. If your company isn't providing them, top talent may choose to look for employment elsewhere.
Your company should offer access to vision, dental, and health insurance plans that will more adequately fill the needs of your employees.
It's easy enough for an outsourced HR provider to process payroll, but that still leaves work for the HR team. The ideal outsourced HR solution will remit taxes on your behalf. This simple step will free up your team's time to focus on internal processes, rather than leaving them bogged down during tax time. If your outsourced HR providers isn't remitting taxes on your behalf, you may need a better, more effective solution to fill that role for your business.
Best-in-class outsourced HR solutions bring with them not only a highly qualified team who can take over many of those critical management tasks, but also top of the line HR management software. This software consolidates your tech stack, putting more solutions in an easy-to-use location.
Top-of-the-line software also makes the information your employees need more easily accessible. Beyond being mobile-friendly, the software should include streamlined reporting tools to free up time and energy for your management team.
When you outsource your HR needs, you should know what expenses to look for each billing cycle. Unfortunately, some outsourced HR solutions will nickel and dime your business in unforeseen ways.
Your outsourced HR solution's billing processes should be straightforward. You should always know what you are expected to pay as each billing cycle comes around, and also which services are included in those charges.
In the end, a Professional Employer Organization is the only outsourced HR solution that provides all of these advantages. If you're not working with a PEO, it may be time to make a change. If you're already partnered with a PEO, find out whether their offerings are best-in-class or subpar by downloading the "Grade Your PEO" scorecard.