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Business Owner Smiling After Outsourcing HR Function
Adrienne SaduralApr 23, 2019 11:34:50 AM5 min read

What HR Functions Can You Outsource?

Human resources (HR) refers to far more than just one function. Your HR people manage an extensive array of administrative tasks and duties, making their role important in any company. Yet, this range of responsibilities can sometimes become a significant challenge, particularly for smaller teams.

Fortunately, there is a solution to lighten this burden - strategically outsourcing pieces of your HR needs, when appropriate. In this blog, we will delve into HR outsourcing and explore the ways in which it can empower your business. We discuss the most common HR functions that companies can effectively outsource, including HR administration, payroll, compliance, recruitment, and benefits.

By outsourcing these functions, you can optimize your human resources management, save on costs, streamline processes, and allow your HR professionals to focus on what matters most - driving your company's success. Whether you're an experienced HR manager or business owner looking to improve your bottom line, understanding the potential benefits of outsourcing is crucial for the growth and success of your company.

HR Administration

HR administration goes beyond just handling routine tasks. When executed effectively, HR can become a driving force for achieving a company's strategic goals, especially concerning its workforce. Certified HR consultants have the expertise to develop service plans and provide valuable strategic recommendations around policies, procedures, and performance management, and support new hires.

Furthermore, the convenience of HR administration extends to external vendors who specialize in this field. Vendors can offer a range of online tools and resources that can streamline HR processes.

They provide self-service portals designed to empower employees and business owners alike. These portals make accessing crucial information simple and aid business owners in efficiently managing HR-related tasks. By utilizing these tools, companies not only improve their HR operations but also overall efficiency and employee performance. Learn more about outsourcing HR administration with CoAdvantage.

Payroll

Payroll management can be a time-intensive and error-prone task, particularly if you lack the expertise and are unfamiliar with the numerous regulations involved. This function requires a thorough understanding of financial regulations, and even a minor mistake can lead to significant repercussions. Outsourcing your payroll function can offer a solution that can free up valuable time for employers and improve the accuracy of financial transactions.

By entrusting payroll processors with payroll management, they handle the time-consuming aspects of payroll administration. This includes tasks like processing payroll, direct deposit, and managing the distribution of paychecks. However, the expertise of these professionals goes beyond these basic functions. They additionally take care of the necessary documentation and reporting requirements, such as W-2 preparation and EEO-1 reports, further assisting your company in working towards compliance with legal obligations.

In addition, payroll processors typically provide tools for tracking employee time off, including leave like Family and Medical Leave. They can simplify time and attendance tracking, reducing the burden on your human resources department. In addition, they often manage unemployment claims, further lightening the load on your HR team.

Explore additional information about outsourcing payroll with CoAdvantage.

Compliance

According to a study by the National Retail Federation (NRF), a staggering 69% of small business owners find themselves overwhelmed by regulations, rules, and mandates. Complying with these ever-evolving requirements not only consumes valuable time but also places the weight of responsibility and accountability squarely on the owner's shoulders.

However, there's a solution that can help combat this challenge. Outsourcing serves as a valuable resource for businesses facing the demands of compliance. A compliance partner acts as a trusted ally, skilled at navigating the complex landscape of laws and regulations. They are efficient at managing a range of issues, including wage and hour disputes, handling harassment claims, addressing workers' compensation, and safety programs, and complying with various employment laws.

A compliance partner can assist in aligning company policies with legal requirements, helping reduce the risk of costly legal disputes. By outsourcing compliance to a trusted partner, it lightens the load on business owners, enabling them to focus on core operations and long-term growth.

Want to know more about outsourcing compliance? Read our blog HR Outsourcing for Compliance Peace of Mind.

Recruitment

Outsourcing recruitment is a strategic move that opens the door to top-tier services delivered by subject matter experts, typically at a much lower cost than trying to handle these functions in-house. It allows your company to gain access to a wealth of industry knowledge, refined strategies, and tools without the associated high cost. This can not only lead to substantial cost savings but also ensures that your recruitment efforts are guided by seasoned professionals who understand the complexities of talent acquisition and the importance of skill sets.

When you partner with a Professional Employer Organization (PEO) to outsource your recruitment, you can consolidate and flatten an array of employer-related costs into a single, manageable expense. This can greatly help your business remain cost-effective while receiving expert support for your recruitment needs.

Outsourced recruitment services offered can include a broad spectrum of functionalities. These services extend beyond finding and hiring talent; they may include comprehensive background screening, efficient application, and interview procedures, and even onboarding services. Outsourcing your recruitment function not only brings time and cost savings but also elevates the quality and efficiency of your hiring processes.

To learn more about what you should expect from your outsourced recruiting partner read our blog.

Benefits

The advantages of outsourcing benefits administration have become increasingly evident. The third annual Guardian Workplace Benefits Study revealed a significant shift in employee benefits. One-third of employers are now choosing to outsource their benefits administration, marking a 65% increase since 2013. This trend highlights the transformative potential of leveraging external expertise in managing employee benefits and positively influencing company culture.

Ray Marra, Senior Vice President of Group Products at Guardian, stresses the profound impact of this shift, stating, "Our study shows utilizing outside expertise can offer opportunities for companies to transform their benefits package and offer a broader range of employee benefits and related services." In simple terms, outsourcing benefits administration allows companies to improve their existing benefits while expanding their offerings to include a comprehensive variety of benefits and related services.

Outsourced benefits programs include a wide spectrum of offerings, including compensation and benefits such as health insurance plans, retirement benefits, and more. One of the remarkable aspects of this approach is its flexibility. Companies can customize their outsourced benefits to include as much or as little as desired. The outsourcing company or PEO will typically administer all aspects, including enrollment, benefits administration, compliance, eligibility oversight, claims management, and providing online self-service tools for both employer and employees.

To explore further details and benefits of outsourcing benefits, please read our Outsourcing Benefits blog.

CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with HR administration, benefits, payroll, and compliance. To learn more about our ability to create a strategic HR function in your business that drives business growth potential fill out the form below!

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Adrienne Sadural
Adrienne Sadural serves as Director of Account Management at CoAdvantage, where she leads the national team that supports clients with strategic guidance, retention, and growth. A former HR Advisor and in-house HR Manager, she helps employers streamline HR programs and improve employee experiences so they can stay focused on the business. Before CoAdvantage, Adrienne worked for a major PEO competitor and for one of the country’s largest beer distributors, specializing in employee relations and multi-state HR operations. Her expertise spans account leadership, client success, and HR compliance. Adrienne holds a B.S. in Management and an M.S. in Management Communication from Purdue University. She is SPHR, PHRca, and SHRM-SCP certified, and is a member of the Junior League of Indianapolis, the Daughters of the American Revolution, and the Purdue University Alumni Association. She lives in Indianapolis with her two dogs, Ellie and Brinkley. Outside of work she enjoys gardening, interior design, and travel. Ireland is next on her list.

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