October 22, 2021 | By Esther Ellington
Tech companies today face countless regulations and employee demands. From federal oversight to extremely competitive benefits, tech companies have to stay on top of their employees' needs to keep them in their jobs.
It's estimated that about 40% of America's workforce will quit their jobs this year. That's a scary prospect as replacing that many positions could cost companies millions. If you're concerned about your employees staying put, that might be a sign your tech company needs HR outsourcing support. However, that is not the only signal that your company could benefit from HR outsourcing. Other signs include an HR tea stretched thin, non-competitive benefits, non-compliance fees, and questions about HR best practices.
Your internal HR employees may be stretched thin dealing with complex regulations and compliance concerns, filling out government paperwork, and handling payroll. While these are necessary tasks, they take time and energy away from building and maintaining your great company culture.
Without a strong company culture, you will not be as attractive to existing or potential employees. Today's workforce wants to be employed by a company that stands for something, and that shares their values. Putting effort into building an attractive and engaging company culture can reap massive rewards by setting your business apart from the competition.
Aside from salary, one of the most common reasons employees leave a company is a lack of benefits or stronger benefits at another company. You must have a best-in-class benefits package to attract and retain top talent in the tech industry.
When you partner with a comprehensive HR outsourcing solution like a Professional Employer Organization (PEO), you gain access to their master health plan, negotiated at scale by experts. You get access to Fortune 500 benefits at a cost small businesses like yours can afford, all by holding medical costs down.
Partnering with a PEO and joining their master health plan means you can offer your employees what they want — affordable and quality healthcare plans. But healthcare isn't all that a PEO offers. You also gain access to countless other cost-saving benefits, including workers' compensation, retirement plans, and many more. You can offer your employees a full suite of comprehensive benefits that may make the difference between your company and a competitor.
Employment laws and regulations are incredibly complex and confusing. Non-compliance can lead to fines, penalties, and employee lawsuits. Even worse, they can also damage your company's reputation forever.
If your business gets a reputation for breaking employment laws or for mishandling payroll, that can be nearly impossible to overcome. But constantly monitoring ever-changing federal, state, and local employment laws is also impossible to handle competently by just a single employee.
A PEO staffs HR experts who constantly monitor these complex regulations on your behalf. They keep their finger on the pulse of potential legislative changes so they can be prepared to guide you as you implement new policies to ensure compliance.
Sure, you could hire a new internal HR team member, but then you're trusting this complicated analysis to a single employee who may not have the knowledge or background necessary to properly guide you, all while managing other important HR tasks. Hiring a new internal HR employee will also cost your company substantial sums of money. However, with a PEO, you gain access to a team of HR experts at a fraction of the cost whose job is to keep updated on these employment laws and guide you through any necessary changes.
Knowing how to handle HR issues is not something you can pick up overnight. There are legal considerations to nearly every employment decision. Having the right guidance can make the difference between violating employment laws and having a stellar reputation in the industry.
HR outsourcing is a key component of building your tech business. When you remove the burden of complex and mundane tasks from your internal team, that frees them up to focus on building an attractive and engaging company culture that helps your business grow. Your PEO makes sure that you stay compliant, making this the perfect solution to attracting and retaining top tech talent.
Esther Ellington is the Director of Client Services at Questco Companies. Leading the Client Services and Onboarding Teams to deliver an exceptional client experience from the beginning of the client relationship and beyond.