Topic Outsourcing HR / PEO

How HR Outsourcing is Critical for Company Growth

How HR Outsourcing is Critical for Company Growth

Don't let HR be a bottleneck in your company's growth plans. Businesses need HR teams to handle continuous administrative and regulatory functions, such as payroll, benefits management, and compliance with employment laws. However, HR also plays a vital role in recruiting, hiring, and onboarding new employees. If you keep all your HR functions in-house, you can't keep up with standard business demands and new hiring goals without expanding your HR staff—which can quickly get expensive and cumbersome.

Instead, lean and fast-growing organizations can partner with outsourced HR services teams to keep pace with their growth plans without ballooning. Many benefits come from outsourcing HR tasks, especially if you want to expand your business as efficiently as possible without compromising employee experiences and regulatory compliance.

In this post, we'll discuss how this strategic approach can power your company's growth.

How HR Helps Businesses Grow

Even when your organization stands still, outsourcing HR services to a professional employer organization (PEO) makes sense. HR is a highly regulated field, and any mistakes can cost your company in terms of penalties or lost employer reputation. Outsourced HR services have expert staff for every specialty within the board umbrella of human resources, so you get expertise in every role without hiring a full-time expert. That distinction becomes even more critical when you want to grow your business.

Here are some of the crucial benefits you can tap into with HR outsourcing:

Reduce the Cost of Benefits

Good benefits appeal to candidates. You can have more competitive hiring practices and retain staff longer when you offer robust health plans and retirement plan options. By outsourcing HR functions, you can join networks to access those competitive benefits at a lower cost. That means you can either improve plan quality without increasing your costs or keep the same quality while having more funding for growth projects.

Your HR partner can expand your benefits offerings, helping you give your employees more choice and customization so they can pick the options that match their needs. Giving them the flexibility to choose demonstrates your thoughtfulness and care, making it clear that you are a great employer.

Gain Access to Regulatory Expertise

Your obligation to meet strict compliance standards grows as your company grows. Outsourcing HR provides access so you can have experts manage your compliance requirements for different states or business areas. They stay updated on new labor laws, evolving best practices, and employment and insurance norms in a way that in-house HR staff simply can't keep up with. Complying with regulations is an enormous task beyond most businesses' capabilities – and being unprepared for it is not a proper defense if faced with a claim. These can be costly and harm your reputation.

Scale Growth Easily

If you want to grow your business effectively, then "scaling" becomes an important concept. Traditional growth models mean expanding your in-house administrative, HR, and support teams alongside the revenue teams. In these models, expanding HR becomes a hindrance that makes growth slower and more cumbersome where it doesn't have to be. Instead, when you outsource functions like payroll, compliance, and other HR branches, you always have the right size of HR capabilities that grow with you. When your company is small, you won't pay a large proportion of your revenue for support, letting you keep funds. As you bring on more staff, scaling up is as simple as calling your HR partner.

Get Time Back to Focus on Core Business Functions

When you switch to a "scale your business" mindset, you can focus all your growth initiatives on revenue. Your internal staff focuses solely on products, customers, and strategy, and when you hire, you're hiring salespeople and customer support reps. Your organization stays oriented on your core competencies with fewer inefficiencies and distractions.

Furthermore, your HR partner can offer critical guidance in managing your business, helping you make structural changes to transition into providing a higher level of work output.

See Improved Risk Management

HR outsourcers take on some of your risk management, making them a crucial partner to ensuring your compliance and accuracy with payroll and other reports. They give you access to a pool of employment law experts, compliance specialists, and experienced risk management professionals, which your company may not have been able to afford to hire under traditional models. But because you have access to a team, you benefit from their knowledge. They can advise you on common liabilities, structure your payroll and training processes to mitigate risk and run internal audits so you can proactively address problems.

Streamline Recruitment and Talent Acquisition

Growing businesses need access to top talent. Third-party HR services have streamlined processes for quickly moving candidates through the hiring phase, access to enterprise-level software for recruiting and onboarding, and can even manage the onboarding process to new hires ready for their first weeks on the job. Not only does this improve the experience for new hires, but it also means your staff can stay focused on their responsibilities with fewer interruptions.

By smoothing out the process of conducting hiring then making onboarding easier on candidates, you can leave amazing first impressions. Stronger starts make happier candidates, which gets them productive more quickly and also more likely to stay long-term at your company.

Access Efficient HR Software

Buying a suite of HR tools to add to your tech stack can quickly exceed your budget, which means cutting out different platforms to make ends meet. However, when you use HR outsourcing, you have more cost-effective access to cutting-edge technologies for managing sensitive information, ensuring payroll is prompt and accurate every time, and ensuring compliance across different states.

This software can also improve your employee experiences by making their lives easier and simplifying communication channels with HR. You can make it simple for them to submit PTO requests or access benefits information, cutting out the back-and-forth of reaching out to an HR representative and waiting for them to respond or ask clarifying questions.

Get Better Support for Your Business

Growing your business is hard work, especially if your team is growing along with it. But an HR outsourcing partner can help you manage cost-effective growth by: 

  • Managing payroll and benefits
  • Ensuring your business complies with regulatory changes and the increased commitments businesses have once they have more employees
  • Working with you to create hiring strategies that align with your business goals
  • Streamlining the administrative side of HR 
  • Giving your employees better, more cost-effective benefits and a more organized hiring process

Find an HR Outsourcer That's a True Partner

When it's time to grow your business, one of the first steps is outsourcing HR. The right HR partner will align with your company values, take the time to understand your growth goals, and provide personalized services that fit your unique business.

Reach out to Questco today to learn more about how outsourcing HR simplifies your business operations and sets the stage for faster growth.

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