What Are the Various Aspects of Human Resources That Can Be Outsourced?

Human resources tasks can take up a big chunk of time for many small- and medium-sized businesses. This scenario can be frustrating for business owners and managers since dealing with human resource issues can leave you with little time to attend to other aspects of running and growing the business.

Fortunately, many companies are becoming increasingly aware of the ability to outsource human resources tasks. This arrangement lets the company offload much of the time-consuming busywork required to keep things moving while retaining some key aspects of human resource functions that are better accomplished on-site.

Theoretically, nearly all human resources tasks can be outsourced. However, some tasks are easier to outsource than others. Common aspects of human resources that can be outsourced include:

• Recruitment: Recruiting new employees can be difficult in the current job market. It is a time-consuming and stressful task. However, outsourced human resource companies often have professionals trained in recruitment that can quickly narrow down your candidate pool and leave you with a small list of qualified candidates. Outsourcing this task means you don’t have to wade through piles of resumes to determine who might be qualified; this is done by someone else so that you can make an informed choice regarding hiring.
• Payroll: Completing payroll can be daunting. You have to spend a ton of time pouring over financial reports to ensure that all the numbers add up and that you make all of the right deductions and tax payments. Unfortunately, one misstep can jeopardize your compliance and put you at risk of an audit or penalties, which makes this task stressful for most business owners. When outsourcing payroll, you get access to qualified payroll specialists who can produce payroll checks, manage benefits, and handle taxes. Moreover, you have the peace of mind that you aren’t at risk of non-compliance. Outsourcing payroll is one of the most effective changes that can be made quickly. And it often leads to reduced stress and more free time to focus on other aspects of the business.
• Benefits: Offering employees a great benefits package is one of the best ways to attract the best talent in your industry. Unfortunately, benefits administration often becomes more complex and time-consuming as you add more benefits to your package. Additionally, as a small business, offering benefits like health insurance can be cost-prohibitive with only a small group of employees. When outsourcing this task, you can work with partners that may be able to provide more opportunities for your employees than you can alone. And outsourcing this task also reduces the liabilities associated with offering benefits, such as health insurance plans, vacation, sick leave, and retirement benefits.
• Creating policies and procedures: As any small business owner knows, creating policies and procedures is vital. Not only do these tools provide your employees with information about the company and expectations for their job role, but they also provide legal protection. As an employer, you are expected to comply with a number of laws related to non-discrimination, fair labor and wages, providing a safe workplace, workplace harassment, personal conduct, and employee benefits, including sick and extended leave. The employee handbook should include all policies and procedures. In many cases, this document can be referenced to reduce the risk of litigation in the event of an employee dispute. Unfortunately, because of the essential nature of this documentation, it can be a daunting task. And omitting any legally-required language can put your business at an increased risk. Outsourcing this task ensures that a specialist will draft sound policies tailored to your company and industry that minimize risk.  
• Performance management: Most employers recognize that employees are often the most valuable asset to the company and would like to encourage their continued professional development so that employees can continue to make a positive impact at the company. However, managing performance can be very time-consuming and costly, especially when working with a small group of employees. When this task is outsourced, your business often benefits from enhanced access to employee performance-management technologies, records maintenance, on-site and online employee training and development tools, and skills development and coaching. In addition to these benefits, performance management specialists can also work to identify individual employee competencies and skills gaps and work with you on performance improvement plans. These features often make performance management easier and ensure your employees continue to learn and grow.

In addition to these tasks, many other HR tasks can be outsourced. It depends on your business’s unique needs and the outsourced human resource partner you work with. For more information about the benefits of outsourced human resources, contact CA HR Services today.

CA HR Services specializes in working with small and medium-sized companies to help develop legal, efficient, and appropriate H.R. processes and procedures that meet state and federal labor law requirements.