Recent studies indicate that organizations, both large and small, either already have an HRO relationship and plan to expand it, or are considering one in the coming year. The survey, conducted by HfS Research and the London School of Economics, finds that 31% of business already outsource human resources san antonio and are looking to increase outsourced services over the next year.
What is the driver for these businesses to outsource human resources?
It is no secret that in lean economic times, business owners are pressed to identify expenses within an organization that can be reduced or minimized. Employment overhead (payroll, taxes, workers’ compensation insurance, employee benefits, governmental compliance, and other employee-related cost centers) typically comprise the single highest area of expense within a company.
More than rent, or facilities operations, or equipment, or compliance, human resources administration and expenses weigh heaviest on the business’s bottom line.
Streamlined HR Systems
HRO firms offer streamlined human resource systems to their clients, significantly minimizing management’s time in overseeing daily administrative tasks. Non-productive “paper pushing” can be outsourced to the HR firm, enabling key staff to focus on their core competencies. Processes such as payroll processing, tax filing and compliance, Unemployment Claims administration, workers’ compensation management, and employee benefits enrollment and management can all easily and efficiently be outsourced.
Cost effective insurance products.
Reducing employment risks
Government compliance and regulations continue to grow in complexity and scale. From wage and hour issues, to discrimination restrictions, to protected classes of employees and new disability guidelines, employers often walk through a minefield of risk.
Without dedicated human resources personnel or legal counsel, it is likely a business will be faced with some form of an employment lawsuit in the coming years which can costs tens-of-thousands of dollars. With close to 100,000 employment claims filed in 2010 (the highest on record!), employers recognize the risk and are turning to Human Resource Outsourcing firms to assist them in managing these risks.
Human Resources Outsourcing may not be the solution for every employment need. However, for most employers with less than 200 employees looking to reduce employment expenses and overhead, outsourcing human resources may be exactly what their organization needs.
As the economy continues to improve and stabilize, the time will soon come that employers will be refocusing on growth and profitability.
It may also entail rehiring staff, restructuring the organization, or simply concentrating on areas that have been left on the side.
Certainly, proper employment administration and oversight will be priorities to get back on their feet.
However, with the demands of rebuilding, many employers may be unable to spend the necessary time focusing on their staff.
Read about one organization that found a different way – through Human Resources Outsourcing.
Since joining the San Antonio Human Resources Outsourcing firm, he feels that the day-to-day protection he experiences in the area of employment exposures is immeasurable.
Our HRO vendor has become our ‘go-to resource.’ Without this type of relationship we end up making our own decisions, without proper knowledge of the law, and will ultimately
You think you can use common sense, but common sense and the law rarely match!
The Director says the benefits of the outsourcing relationship were immediately realized, as the new systems and processes were implemented and functioning within 30-60 days.