HR Outsourcing for Law Offices

Legal practices don't always operate in the same way that typical businesses do, which makes HR a unique pain point for many firms. Lawyers and their associates work long hours under stressful conditions, and client confidentiality is of the utmost importance.  

Luckily, law firms can handle some of these challenges by outsourcing some or all of their HR functions to a professional employer organization (PEO). Read on to learn more about the benefits of outsourcing your law firm's HR to a PEO.  

How HR Outsourcing Benefits Law Firms 

If you find that your law firm is struggling to keep up with the rigorous demands of having an in-house HR department, outsourcing can have a lot of benefits. A PEO can take on some of the more difficult tasks. Here are some of the biggest pros of HR outsourcing for your law firm:   

1. Outsourcing Frees Up Your in-House HR.

It takes time and focus to take on the HR challenges that your law firm is facing. When you outsource some of your HR functions, your in-house team can give more time and attention to pressing issues within your firm.  

2. Outsourcing Saves Money.

When you outsource some of your HR functions, you can have a smaller in-house team. Partnering with a PEO means you don't have to hire another HR rep, which saves you money and resources. In addition, working with a PEO can reduce the costs related to employee benefits and worker's compensation.  

3. Outsourcing can Enhance Talent Acquisition.  

The legal industry is competitive and attracting the top talent can be difficult. When you partner with a PEO, though, you can offer a more robust benefits package at a competitive price. This makes it easier to attract top talent to your firm.  

4. Outsourcing can Streamline the Hiring Process.

Hiring new employees doesn't have to take weeks or months. When you partner with a PEO, they can help to implement state-of-the-art HR technology, like applicant tracking systems. They can also help you create compelling job descriptions and choose a salary that is competitive with other firms in the industry. 

These are just a few of the benefits that your firm can gain from working with a PEO and outsourcing HR functions.  

5 HR Functions Your Law Firm Should Outsource   

Outsourcing your law firm's HR to a PEO clearly has a number of benefits.  But how do you choose which functions to outsource, and which to keep in-house? Of course, this will be different depending on the needs of your firm, but here's a quick guide to some of the best functions to outsource:  

Employee Benefits  

When you partner with a PEO, you gain access to their master benefits plan which was negotiated by experts. This is often a better benefits package than what you can normally offer your employees on your own and at a lower cost. In the long run, better benefits mean happier employees, higher morale, and better employee retention.  

Workers' Compensation Insurance  

When you don't use HR outsourcing, you must deal with paying a lump sum upfront for workers' compensation, based on your predicted payroll. However, when you join a PEO's workers' comp plan, you can switch to a monthly plan, where you pay-as-you-go. In addition, when you join that plan, your firm also gains access to their experience modifier, which is a major factor when determining workers' comp premiums. If you're a new firm or have a history of claims, partnering with a PEO can lead to major savings.  

Benefits Administration  

A PEO has expert answers to any benefits administration questions you have. They can help you update your employee handbook to incorporate best practices and will help to ensure that onboarding paperwork has been filled out for all new employees.  

Payroll  

A PEO can also help to administer your payroll. They will also assist with withholding, processing, and even payroll tax. 

Compliance Services  

Federal, state, and local laws are always changing, and keeping up with them can be a big task. A PEO strives to keep up with all labor and employment laws. HR compliance services ensure that your firm is in accordance with all the laws from the Affordable Care Act, the Family and Medical Leave Act, and more. 

An HR outsourcing partner can easily identify risks within your firm and mitigate them before they become more serious issues. They can customize safety training for your employees and help to keep everyone on your team safe and happy.  

Why Should Law Firms use a PEO? 

Professional employer organizations aren't the only type of HR outsourcing solution available to you. It's important to weigh the pros and cons of each option and think about what they can do for your law firm. However, PEOs are the only option that provides direct cost savings for employee benefits and workers comp premiums, which can save your firm serious money.