The document advocates for small and mid-sized businesses to outsource their HR functions. It argues that outsourcing HR can significantly reduce costs, saving thousands of dollars annually in employee salaries and benefits. Outsourcing also frees up time for business owners to focus on core operations instead of getting bogged down in HR paperwork and issues. Working with an outside HR firm like PriorityHR provides access to expert guidance and support. This partnership expands businesses' knowledge base and allows them to build a strong employer brand and company culture.
1. IT HAS BECOME ABSOLUTELY
VITAL FOR SMALL AND
MIDSIZED BUSINESSES TO
OUTSOURCE HR!
Outsourcing has been around for decades; it has picked up speed since the economic
downturn of 2008. In the 90’s we used outsourcing which referred to large corporations
that stationed jobs offshore. Today, outsourcing normally refers to subcontracting an
internal business function to an external provider that brings with them a wealth of
experience and expertise to complete a essential function. Most small to midsized
businesses outsource functions such as payroll; accounting; and similar tasks for the
reason of proficiency; expertise and costs. Business owners take pride in their existence;
they don’t rely on others to “get the job done”; achieve their aspirations and goals with
their own flair; that being said an increasing number of entrepreneurs’ are witnessing their
businesses (and their bank accounts)flourish as a result of strategic outsourcing.
HR Outsourcing saves money
Let’s look at the numbers…total yearly costs (salary; bonus; benefit and pension costs;
payroll, taxes, office space; laptop; software; mobile; and business expenses) for an
entrepreneur to employ an HR Generalist with 2 years’ experience for a small business
(50 employees or less) is between $65,000 to $75,000. To employ an HR manager with
over 5 years’ experience is a staggering $110,000 annually. Still not convinced?? Most
HR professionals with less than 5 years’ experience are not business savvy, they will
have difficulty relating to an entrepreneur whose subservience to purpose is to nurture
their business and watch it prosper.
Companies such as PriorityHR., a Grand Rapids based HR firm, allows small businesses
to outsource their entire HR resources requirements for annual cost as low as $3,000 for
a company with less than 6 employees, as low as $10,000 for company with less than 25
employees and as low as $20,000 for a company with under 50 employees. That’s a huge
2. savings and the savings does not stop there. Through their work PriorityHR will search
for alternate ways to reduce your costs and ensure you don’t get into legal hot water!
HR Outsourcing saves time
Imagine the time you could regain with a strategic HR Business Partner, to help nurture
your business, to permit you time to spend with your family and not be inundated with
vast amounts of paper work; employee performance issues; and HR legal issues just to
name a few. Outsourcing your human resources requirements may be the initiative you
have been searching for! In addition, you will be able to focus your time on other areas of
your business.
HR Outsourcing expands your knowledge base
Outsourcing your human resources requirements will grant you access to HR experts in
the field that will become an extension of your company.
Through PriorityHR’s partnership, they will immerse themselves into your organization,
objectives and culture to offer strategic consulting strategies that will uniquely align with
your organization. PriorityHR is a company dedicated to making human capital into a
strategic advantage for their clients. We are prepared to help you strengthen and grow
your business. Lastly, outsourcing human resources will enable you to gain knowledge
and continue to learn and gather information from industry experts.
HR Outsourcing allows you to focus on your greatest competitive advantage;
EMPLOYEES!
PriorityHR believes for companies to dominate and become a respected leader in their
market place, they must invest in their employees. For companies to become successful
they must first start with the “Who” (employees) prior to the “What” (strategies). You must
ensure you have the right talent in the correct seats within your organization. Once you
have the correct talent you must ensure they are aware of how they will contribute to your
company’s goals and values. Furthermore, this will permit you to merge a culture of
discipline with an ethic of entrepreneurship and self-determination with a focus on results.
The biggest obstacle for entrepreneurs’ is locating the right talent they can trust to ensure
they are making the correct decisions for the company to prosper. Lack of trust slows
your company down, makes you inefficient and costs you money and time.
3. At PriorityHR we believe “culture is as important as strategy!” Outsourcing your
human resources to a firm that will take the time to understand your business and your
HR requirements will allow to you to build a great long lasting company.
HR Outsourcing builds your employer brand
Your employer brand is critical for the image of your company. This image is built
upon reputation and accessibility. Perhaps one of the prevalent benefits (and often the
most overlooked) of outsourcing your human resources requirements is that it will provide
your business with a professional and polished image. (Offering benefits on the level
which only the very large corporations once had access to.) It will also permit you time
and resources to focus on preserving your core. Lastly, outsourcing human resources will
aid in managing a temporary or permanent increase or decrease, in business and will
serve as a jumping off point big growth.