HR Solutions Blog
Home What is HR Outsourcing and How Does it Help Businesses?
Toggle nav
What is HR Outsourcing and How Does it Help Businesses?
No CommentsOutsourcing human resources functions is becoming a serious tactical and cost-saving move for all types of businesses. HR outsourcing firms have experts in place to help companies with payroll administration, managing employee benefits, regulatory compliance and more. And they can customize their offerings to each business and take on as little or as much as the company wants.
“We are flexible in our design to meet each business’s needs,” says Ed McNorton, president of HR Solutions. “Our daily goal is to provide our clients with a level of confidence and to ensure that the services outsourced are being delivered with a high-level of competency. Our clients want to be able to go home each day without worrying about all the employment liabilities we face as employers on a daily basis. We have all read about the nightmares.”
One of The Foust Group owner Todd Foust’s biggest HR worries is complying with employment laws in all the states the industrial specialty contractor operates in. With HR outsourcing, he gets a team of experts to help him out and doesn’t have to have a professional on staff working on employment compliance issues.
As part of The Foust Group’s relationship with HR Solutions, the company also gets training to help managers deal with HR issues that can arise throughout the workday. The latest quarterly training session dealt with how to handle an employee suspected of drinking or using drugs and how to get that person safely off the jobsite if needed.
A Cooperative Approach
In addition to helping offset the worry and headaches associated with HR issues, HR outsourcing firms’ staff members become valuable partners and team members to their clients by providing expertise. “One of the most exciting things for me is when I not only help a client mitigate risk relative to a particular employee issue, but when I form such solid bonds with them they also invite me to participate in management meetings so that we can take a proactive approach to their HR needs,” says Leslie Austin, HR director at HR Solutions.
After Margaret Crifasi and Chris Weilenman purchased printing graphics company First Graphix, they faced an unemployment hearing and lost after handling it on their own. Later, after they started outsourcing HR administration to HR Solutions, they faced another hearing and won with help from Austin and other HR Solutions team members.
HR Outsourcing Saves Time and Money
Outsourcing HR administration has not only helped Crifasi and Weilenman handle their company’s HR needs better, but has also freed them up to focus on other aspects of the business — particularly those where they have expertise, Crifasi says.
More time is a frequently stated benefit of HR outsourcing and another is saving money. According to a 2012 Society for Human Resource Management survey, 31 percent of companies saved money through outsourcing. And Deloitte’s 2012 outsourcing survey found that 75 percent of companies that outsourced were satisfied with their cost savings.
Multiple HR Outsourcing Models Meet a Variety of Needs
No matter what an employer’s HR needs are, there’s an HR outsourcing firm that can help. There are are three main models of HR outsourcing: professional consultants, professional employer organizations (PEO) and alternative services outsourcing (ASO) — and each is flexible enough to tailor services to individual clients’ unique needs.
Professional consultants can help a company assess certain functional areas of its HR department that may require overhauling or streamlining. Under the PEO model, the HR outsourcing firm becomes the employer of record for employees and takes full control of the client’s human resource functions.
The ASO model is the most common and involves the HR outsourcing firm taking over most transactional and supporting in-house staff with strategic functions. Employers can transfer certain liabilities to an ASO.
With its flexibility and cost-saving potential, it’s not surprising more companies are looking to HR outsourcing to take care of many of their human resources needs.
If you have questions about HR outsourcing, give us a call at 225-769-0669 or contact us online.
HR Solutions is a human resources outsourcing firm based in Baton Rouge, Louisiana. We eliminate human resources headaches for businesses with 10 to 1,000 employees by handling their payroll, employee benefits, regulatory compliance and other staffing needs. Contact us to learn how we can streamline your company’s human resources function to save money and reduce risk.
