As a small business owner, you have probably heard many times that you need to work on your business instead of in your business.
Working in your business means day-to-day operations. That is work an operations employee should handle. You need to work on your business, which means taking proactive steps to grow your business, yielding greater results.
One area of small business that bogs people down is HR administration. This is an "in your business" that can be outsourced. Outsourcing this work allows you and your HR team to work "on your business" and focus on growth and revenue. Even from a purely economic standpoint, outsourcing mundane HR tasks makes sense. Read on to find out why.
The Problem with In-House HR Administration
Keeping up with the ever-changing labor laws and regulations is a challenge for any employee. These areas of HR can quickly cause financial hardship for your company if not completed with absolute accuracy every single time.
Your in-house HR team will also need to deal with vendors, background screening, drug testing, payroll information, benefits administration, and countless other administrative burdens.
The Answer is HR Outsourcing
By shifting these mundane HR tasks to a Professional Employer Organization, you can allocate your in-house HR team's time to more productive activities. They can help you work on your business by providing a better onboarding and cultural experience for your employees. This is a great way for your business to attract and retain top talent in your industry. When you work with a trusted PEO, you can have the peace of mind you need that your business is in expert hands.
Many employees say they value a great benefits package above all else when determining whether they want to take a job with a company. This is also true of existing employees debating whether to stay.
Partnering with a PEO allows you the chance to give your employees what they want. Through your PEO, you can offer a stellar benefits package that can help attract and retain top talent in your industry. Partnering with a PEO allows you to offer these healthcare benefits to your employees at an affordable cost to you.
Economics of HR Outsourcing
When you manage your benefits, payroll, workers' compensation, and other HR administrative tasks, you are wasting over 3.5% of gross wages.
When you outsource these mundane HR administrative tasks, your business can grow faster than you imagined. In fact, businesses that partner with a PEO see an average ROI of 27.2%. It makes economic and strategic sense to partner with a trusted PEO who can keep your business compliant while offering your team great benefits at an affordable cost to you.
Focus on Your Business
Culture and employee experience matters. Focusing on these things is working on your business.
When you shift administrative burdens to a PEO, you can stop worrying about whether your business is compliant. You have an expert team of HR professionals working to ensure you stay compliant and avoid fines. That peace of mind gives you the opportunity to focus on your core business of keeping your employees happy and engaged. That also gives you the time you need to take your business to the next level.
Shawna is the Strategic Sales Director. Shawna has over 15 years of experience as a sales director, business leader, and strategic advisor in the PEO industry. She specializes in sharing with business owners her extensive knowledge of positive corporate culture building and strategic growth initiatives that drive business success across a wide variety of industries.