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Human resources management is a crucial and complex function for any business. If you do not have the resources to handle this job in house, then outsourcing HR services may be your best option.
With services like Paypro Workforce Management, it is possible to handle all HR needs without straining internal resources. Keep reading to learn the specific benefits of outsourcing your business’s HR needs.
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Spend Less on Employee Salaries by Outsourcing HR Services
Did you know, on average, an in-house human resources management professional will earn $75K per year? What’s more, this is just a base salary. They also receive benefits. Depending on your business’s size, you may easily spend hundreds of thousands of dollars on your HR staff. However, when you outsource these jobs to a professional service, it can help you reduce this cost significantly.
Enjoy Reduced Benefits Costs by Outsourcing HR Services
Usually, a third-party HR company can negotiate much better rates for their clients (which is your business). A smaller business may receive better rates that are typically reserved for companies that have a larger staff.
Reduce Costs Related to Hiring and Training New Employees
According to information provided by the Society of Human Resource Management, it costs about $4,129 to hire a new employee. It also costs to train them, and you can expect each new hire to cost you another $1,200 during their training period.
On the other hand, with an outsourced HR service, you can feel confident you are hiring the right people, reduce turnover and related expenses, and have the resources needed to cut the costs related to hiring new people significantly.
Avoid Noncompliance Penalties
As an employer, you are required to adhere to certain employment laws and regulations. These are set on both the federal and the state levels. Failure to adhere to these laws or regulations can result in serious consequences and fines for your business. But with the help of an outsourced company, you can feel confident you are meeting all the regulations in place.
Spend Less Time on HR Tasks with Third-Party Services
When you outsource HR tasks for your business, it frees up your time to spend on growth goals and making strategic sales. In the end, this helps you increase your business revenues. Research has shown that even if you work 50 hours—or more—each week, you only spend about 30 percent of your time on business functions.
You spend the rest of your time on different administrative tasks that don’t help with your business’s revenue. Outsourcing these administrative tasks will allow you to free up your time and focus on core parts of the business that will help you earn money and grow.
Find the Right Third-Party HR Service Provider
There are more than a few options when it comes to finding the right HR company to outsource your needs. Take some time to make sure that you get the right company by using the tips and information here. Being informed is the best way to ensure that you see all the benefits listed here, and more. Taking these steps will help improve your company significantly.