Human resource outsourcing (HRO) is when a company partners with an experienced third-party HR provider to help with their specific HR functions. When a business is falling behind in its HR responsibilities or maybe doesn’t have a dedicated HR department, it can be useful to call upon an outsourced HR provider to gain a team of experts who can help.

It’s no secret that the demands of HR can be overwhelming, especially for small businesses. If the HR staff is limited, tasks like administrative paperwork, benefits, payroll, compliance, taxes, and more can become extremely daunting. If your HR team is wearing thin, and these tasks are taking up valuable time that could be used to focus on strategic goals, it may be time to consider outsourced HR services.

Outsourcing HR will allow your business to gain access to HR solutions that can streamline daily operations and provide extensive experience in HR situations. It's a cost-effective way to give your team time to shift their focus back to their strategic operations and help the business grow.

Download Our Free HR Outsourcing Guide

Learn everything you need to know about outsourcing HR services and how SolveHR can help simplify daily tasks, strategize your HR, and grow your business.

Download the Guide

Why outsource HR for your small business?

As a small business, it can be challenging to get a handle on the complexities of HR, from handling extensive compliance regulations to gaining a competitive edge through employee benefits packages. With an outsourced HR team on your side, the team can work alongside HR professionals who can guide them through the complicated HR world.

When outsourcing HR, look for companies that can provide solutions for the following:

• Managing benefits and payroll administration
• Strategies for attracting and developing talent
• Maintaining compliance with legislative and regulatory requirements
• Managing Complex Employee Issues
• Assisting with Leaves of Absence
• Assisting with Unemployment Claims and Hearings

An outsourced HR company can provide solutions and suggest strategies that will streamline operations and build a strong HR approach – giving your team a break from the tedious administrative tasks and allowing them to contribute to your business’s growth.

When should you consider partnering with outsourced HR services?

Having an HR team is essential for every business, so if you do not currently have one, it may be time to seek an HR partner. Even if your business already has an HR team in place, they may still benefit from additional support. Partnering with HR experts can alleviate some of the workload and enhance productivity.

Pay attention to the following signs that will indicate if your team would benefit from an outsourced HR service:

• HR administrative tasks are incredibly time-consuming. When your strategic tasks are neglected to make room for payroll or benefits, you will know it’s time to contact an HR partner.
• Employees lack access to self-service portals. HR managers should not have to handle every aspect of benefits enrollment. Instead, employees should have access to an HR portal that gives them control over completing these basic tasks.
• HR is draining the company’s budget: HR should be a strategic asset to your business. However, if your HR department is using up all of your company’s resources, something is amiss. Exploring external expertise may help uncover the issue.
• Regulations and compliance are falling behind. Your HR team should have a firm understanding of current federal, state, and local laws and regulations affecting your business. Struggling to keep up with compliance could create even more significant issues.

Benefits of an outsourced HR department

Small businesses will find many benefits in partnering with outsourced HR solutions. From increasing daily productivity to identifying and reducing risks, outsourcing HR will remove many headaches from your business.

With the added help of an external team, you can offer employees great benefits, reduced workload, and time to focus on core responsibilities. You will also have an ongoing partnership to help you maintain these amazing offerings.

Improve talent management

An external HR department can improve talent management responsibilities such as performance management, talent strategy, onboarding, and workforce planning. This added support, paired with valuable solutions, and advanced HR technology, will reduce the time and effort required from your team to complete these tasks.

Competitive employee benefits

Offering quality benefits will improve employee satisfaction and help your business retain top talent. About 78% of employees say they would leave their current company for better benefits. With an outsourced HR team, your business can offer enterprise-level benefits that still align with your HR budget.

With excellent benefits, your current employees will be more inclined to stay at the company for longer. Additionally, when hiring new talent, your benefits can be used to attract top talent and gain a competitive edge against other companies.

Improved productivity

As your HR team probably knows, there is a better way to handle those tedious administrative tasks. However, without the tools needed, your team will be stuck trying to tackle them head-on. With an HR partner, you can gain access to advanced HR technology and solutions that can streamline your administrative tasks, and the external team can handle the rest.

With these daily tasks covered, your internal HR team can refocus their efforts on developing strategic HR plans to improve business functions and overall employee satisfaction, increasing the potential return on investment.

Access help with regulatory compliance issues

As employment laws and regulations evolve, staying on top of the latest updates can be difficult. If a business is not compliant with the newest regulations, it could be at risk for serious financial consequences. Outsourcing with a trusted HR partner will take this stress off of a small business and provide the team with compliance experts who know when changes are happening and how to prepare your business for them.

Identify and mitigate risks

Outsourcing to experienced HR professionals will give your team experiences it may not have had yet. They will know how to identify and mitigate risks like safety hazards, compliance issues, and legal liabilities. Guidance on areas of improvement, such as employment laws, workers' compensation, and employee training, will reduce potential risks and help your business avoid penalties.

Outsourcing HR has many benefits, and with a strong partnership, your business can continue growing with ongoing support. As your team refocuses its attention on its core operations, your outsourced HR team can lend a helping hand to ensure the business thrives. This combination of teams will propel the business toward growth and success.

Find an HR provider that can help

Outsourcing to an HR provider can help small businesses better achieve their goals. It will reduce their workload, streamline daily tasks, and provide expert support for talent management, compliance, and employee benefits. With the right partner, businesses can reduce risks and improve productivity while allowing internal teams to focus on strategic initiatives.

At SolveHR, our team of HR experts is dedicated to helping small businesses reach their goals by providing customized solutions and ongoing support. Whether you need assistance with daily operations, compliance, and regulations or want to improve employee satisfaction, we are here to take your HR management to the next level. Let’s work together to build a strong, efficient business. Contact us today to get started.

Add a contact button

SolveHR is a full-service Professional Employer Organization (PEO) that provides comprehensive human resources outsourcing solutions to businesses across the United States. Our services include payroll processing, HR management, risk management and safety, employee benefits, retirement plans, and specialized programs for franchise owners. By streamlining HR functions and ensuring compliance, SolveHR helps businesses optimize operations and support employee success.