The Benefits of Outsourcing HR for Small Businesses

Managing a small business is an extraordinary accomplishment, and one that comes with its own unique sets of challenges. You may find yourself realizing how demanding simply managing the Human Resources side of a business can be, not to mention all the other facets required of you and your organization.

While investing in HR might not stick out as a must when you’re in the early stages of your business, you’ll find that HR can very quickly become incredibly complex and time consuming; from managing payroll and benefits, to navigating employment laws and regulations. Simply put, HR tasks often overwhelm business owners who are already stretched thin. The good news? Outsourcing HR has the opportunity to provide your small business with the support and expertise you need to efficiently manage these challenges and changes. And investing in HR now will truly save you time, money, and headache down the road. 

Let’s discuss some of the specific benefits of outsourcing HR for your small business:

Cost Savings: One of the primary reasons many small business owners consider outsourcing HR is the cost savings benefits. When you partner with an HR firm, you can significantly reduce overhead costs and lower your labor expenses by not needing to hire full time HR employees inside your organization. These HR firms provide a range of services, and you can often create a package that works best for your business. From managing payroll and benefits, to handling compliance-related tasks, outsourcing HR can help you save money and improve your bottom line, not to mention how it provides access to experienced HR professionals at a fraction of the cost.

Access to Expertise: As mentioned above, outsourcing HR practices provides access to specialized knowledge and expertise. An HR firm opens up the door to experts in a variety of fields, including (but not limited to) compliance, employee benefits, workforce planning, as well as other complex HR issues. Essentially, when you outsource HR, you have all the benefits of expert staff at your fingertips, without hiring or managing your own team. 

Increased Flexibility/Time Savings: Time is money, especially for a small business. So while hiring an HR Company is not cost-free, it will provide a greater range of flexibility and time saving measures. As mentioned before, HR outsourcing firms offer a range of customizable services, which can oftentimes be scaled up or down as needed, helping small businesses adapt to the changing needs and demands of the organization. 

Improved Compliance: Staying up to date with the latest employment laws and regulations can be incredibly complex for a small business. It could be a full-time job all on its own. By outsourcing, your small business can ensure compliance with legal requirements, receive guidance and support as needed, and stay up to date with ever-changing laws and regulations. This can all be incredibly helpful to small business owners who could benefit from the expertise of professionals who understand HR best practices (not to mention avoiding costly legal penalties). 

Scalability: As your business continues to grow, your HR needs will also advance. By outsourcing HR you’re provided with the ability to scale the services the chosen firm provides, based on the adjusting needs of your business. This type of flexibility allows a small business to effectively manage HR functions without the need for significant investments in staffing, infrastructure, or resources.

Efficient expertise is at your fingertips when you make the decision to outsource HR. These firms can help elevate your business, save time, and ensure a certain level of security. Outsourcing HR can provide small business owners with significant breathing room when it comes to this aspect of their organization, freeing you up to focus on other important aspects within your company. Ready to learn more about how Powerhouse HR can help you manage your team’s needs? Contact us here.