Choosing Which HR Functions to Outsource

Outsourcing certain HR duties benefits both small and mid-sized companies. But how do you determine which tasks to outsource? 

Understand Your Current HR Capabilities

First things first - understand what your HR team currently handles. This likely includes:

• Onboarding and offboarding
• Policy creation and revision
• Handbook drafting
• HR compliance
• Payroll taxes
• Benefits administration

Many small or single person HR departments have trouble keeping up with compliance and regulation. This is no fault of their own — HR is a complex and constantly evolving area of business. 

But compliance issues can be a source of pain for businesses. In fact, not only can the business get in trouble for violations, so can the individual. Keeping up with compliance changes requires attention at the federal, state, and local levels. Not only will a PEO give you insight into proposed and recently enacted changes, but your PEO will also help you address internal changes and modify policies to ensure your business is compliant. 

They can also handle administrative burdens including processing payroll and benefits administration. HR software that PEOs bring to the table can make onboarding easier.

Determine what the capacity of your HR team is, what they can handle, and how a PEO can best increase the efficiency of your existing team.

Know Your HR Priorities

Next, determine your priorities for both your HR team and your business as a whole. You may look at items like:

• Revenue growth
• Expanding into a new market
• Reducing turnover
• Creating a strong company culture
• Attracting and retaining top talent in your industry
• Offering higher-quality benefits

Even if you have a great team of HR employees who manage their workload well, a PEO can free up your HR team to help with some of your other priorities that they simply have not had time to get to yet. 

Your specific priorities will vary from another company. That's why it is important that you do this exercise to determine your unique priorities. Once you make that determination, you can better understand how the right PEO can help fill your gaps.

Use Outsourcing to Achieve Your Priorities

Outsourcing some HR tasks to a PEO provides many advantages, including:

• Answering complex benefits questions
• Attracting top talent
• Manage your company's benefits
• Reduce turnover through hiring right the first time

For example, medical benefits are some of the most important ways to attract and retain employees. PEOs enable access to affordable Fortune 500-level benefits packages. No matter where your priorities lie, the right PEO can add value to your company. It all depends on what you need accomplished first.

Seek Out Positive ROI Opportunities

With the right HR outsourcing, you can achieve a positive ROI while relieving your HR team of administrative burdens.

Because you offer a great benefits package with best-in-class healthcare, you can attract the best talent in your industry while saving money. They, in turn, invest in your company by being more efficient and loyal employees. This lowers costs related to turnover and hiring.

Fill the Gap with a PEO

Partnering with the right PEO gives your HR team the chance to shift their focus to help grow your company, engage your employees, and create a better and more exciting company culture. This all comes with a positive ROI thanks to savings from lowered costs for benefits, workers comp, and turnover.

Partnering with a PEO can be the right move to achieve your priorities and engage your employees.