Outsourcing HR – how can it work for you?

Written by
Eileen Haggerty

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Savvy leaders are rethinking their HR strategy as they focus on gaining efficiencies in the new world of work during and post-pandemic.

Consider the organizational challenges of working from home. Pre-pandemic, only 6% of the employed worked from home; in May of 2020 that figure jumped to 35% of the employed workforce. With almost no warning, the pandemic created a need for businesses to allow everything that could be done remotely to be done remotely. This reinforced the need for businesses to be ready, agile, and resilient.

Outsourcing human resources provides a solution to support the challenges that change brings, in addition to being an effective way to get access to full-service HR support scaled to the needs of your company.

The benefits of outsourcing HR

Employees are the most valuable assets of any company. HR professionals support every aspect of the employment cycle within an organization. From recruiting and onboarding to exiting, strong and efficient HR processes help employees have good experiences and can protect your organization from compliance and other liability.

HR outsourcing can free leaders from administrative tasks so they may effectively focus on their organizational goals. For organizations with an existing HR department, HR outsourcing provides the advantage of sharing the workload so that their progress and growth do not suffer and functions like recruiting can get dedicated attention.

In addition, outsourcing human resources may be more efficient than handling HR in-house, whether due to a lack of time, resources, or expertise at various levels. When businesses properly attend to their employees, it improves the daily experience of the people counted on to execute day-to-day business.

How do you know if HR outsourcing is right for your organization?

  • Do you lose sleep wondering if your HR house is in order? Would you like to have your HR function managed by a team who works with other similar businesses to benefit from best practices?
  • Do you need HR leadership and support but think you can’t afford it or don’t know where to start?
  • Do you scramble whenever a performance or employment matter arises not knowing where to start or not being confident in how you resolved it?
  • Do you spend limited budgets on high lawyer fees because of a lack of internal HR knowledge?
  • Do you want to increase diversity and inclusion in your organization but aren’t sure where or how to start?
  • Do you wish you had access to trainers who know your organization and can deliver DEI awareness and other training to your staff?
  • Are the HR functions spread among employees from other departments who may not have the expertise and/or time to handle them thoughtfully?
  • Is there not enough in-house HR expertise to properly mitigate HR risk and develop your HR infrastructure?

If you answered yes to any of those questions you’re not alone. In the 2021 Identity of HR Survey, 54% of respondents reported their companies used an outsourcing firm or consultant on a regular basis. Three important reasons for outsourcing are the benefits of cost, expertise, and time efficiencies. These efficiencies are really the opportunity costs of business owners and managers, who lose time and money focusing on HR issues when these resources can be spent on growing their business.

Consider the benefit of outsourcing the following HR functions:

  1. HR Compliance – There is a myriad of legal concerns and compliance issues associated with recruiting, hiring, and terminating employees. Additionally, HR-related legislation and regulations change frequently, and it’s important to stay on top of these developments to remain compliant and avoid costly penalties. We provide our clients with timely updates when there are relevant changes in laws or regulations. HR outsourcing can save you the risk of penalties and fines keeping you compliant on a day-by-day basis with little to no extra work on your end.
  2. Recruiting – Attracting top talent takes a targeted, proactive effort; and a solid recruiting strategy positions companies to find and successfully hire the right candidates. Our HR Consultants and Recruiters can oversee the talent acquisition process and identify potential employees, saving business leaders valuable time and effort. Interested in increasing your team’s diversity? We bring a DEI lens to hiring and all of our HR work.
  3. Retention – A key aspect in recruiting and retaining talented individuals is offering attractive and competitive salaries, benefits, and perks. Additionally, employee engagement and satisfaction can mean the difference between retaining key employees and a high turnover rate. Insource Services can help your company stay competitive and retain key talent. The battle for talent is fierce and Insource Services can help you be competitive in your industry with benchmarked salary and benefit offerings. Additionally, we can develop the tools you need to measure employee satisfaction and recommend strategic changes based on the results.
  4. Employee Benefits – A strong employee benefits package, including health insurance, a retirement plan, and more, can keep your current employees satisfied as well as give your company a competitive advantage in recruiting. Administering benefits is not easy as there is an appreciable amount of work to research plans and comply with benefit regulations. Insource Services can manage this for you by working with your providers to ensure the right benefits package for your company and administer the benefits correctly.
  5. Employee Relations – Conversations within the company should be direct and effective to manage the business properly. If an employee’s needs and complaints are not addressed, they might leave the company. Insource Services interacts with your employees and can ascertain employee satisfaction. In addition, we can help address employee-manager conflicts and other employee relations issues.
  6. Employee Handbooks and Policies – The foundation of a company’s relationship with its employees begins with a solid, thorough employee handbook. We can create a customized, comprehensive employee handbook to accurately reflect your company’s culture. We can manage this process for you by creating or making needed policy changes quickly and easily. We also will provide a list of considerations for those interested in a review of policy language and policies from a DEI lens.
  7. HR Process – Insource Services can help your organization maintain its HR data and create processes to assist you in overseeing a critical function that has so many moving parts running smoothly and efficiently. We can review your hiring process (job descriptions, candidate sourcing, resume review, and interview process) for compliance and inclusive practices to expand your candidate pools.
  8. HR Point of Contact – HR is often the first place employees go for questions about benefits, policies, concerns, and other company issues, and can often overwhelm smaller organizations with no formal HR department. In many companies, HR resources and staffing is non-existent or lean and companies struggle to handle their many obligations in this area. Some questions employees ask are simple; they just don’t know where to source the information themselves, so they turn to HR. Others are more complicated, and we help you navigate those. Insource Services is available to employees and managers for all the information and assistance they need, in person, over the phone, or via video conferencing.
  9. Performance Management – Annual reviews, performance improvement plans, and performance-related conversations are an inescapable and necessary part of running a business. Insource Services can provide you with the expertise to prepare for or work through these moments.
  10. Diversity Equity, and Inclusion Training and management practices – Diversity, equity, and inclusion training helps employees at all levels work more effectively with colleagues of differing identities and backgrounds. It aims to build awareness and skills which support marginalized employees and help to cultivate a safe, compassionate, and equitable culture where everyone feels valued and has a sense of belonging. At Insource, we can help facilitate conversations and provide guidance regarding DEI course offering based on your organizational culture and bring this perspective to our work with you across all HR management processes.

Outsourcing the human resource functions can save businesses time and money. Insource offers services scaled to your needs so that you get what you need when you need it. Small to midsized businesses often struggle with the episodic nature of HR work so staffing can be a challenge. Some weeks of heavy hiring or many issues could be busy, other weeks there is little to no activity.

If the annual cost of outsourcing HR is so much less than hiring one HR employee, imagine how expensive it would be to hire a full team – and that is what you get with the Insource Service’s Human Resources team. From managing your entire human resources function on a part-time, as-needed basis to assisting with specific HR-related tasks, Insource Services can help.

For more information about our HR support, get in touch today at insource@insourceservices.com or call us on (781) 235-1490.

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