For some companies, the idea of outsourcing their human resource tasks is daunting—the perceived lack of control, the time it takes to “make the switch,” and the cost all loom large in the minds of many CEOs and CFOs. However, outsourcing your HR isn’t nearly as bad as you may think!
When we speak with customers, one thing we hear over and over again is how much they’ve benefited from partnering with our professional employer organization (PEO)—often in ways they didn’t expect. Below are nine of the most important benefits of HR outsourcing—some you may know, and some you may not have considered!
9 Major Benefits Of HR Outsourcing
1. You’re better prepared to handle unfamiliar—or unprecedented—situations.
According to NAPEO, companies that partnered with a PEO during the COVID-19 pandemic fared much better than without. Why? Because having a partner whose main job is to help you quickly navigate legislation, benefits changes, employee safety, remote work, and more is invaluable. PEOs take care of all that so you can keep working (in whatever form that takes).
2. You get comprehensive employee benefits that will attract new talent.
In the current labor market, you need all the advantages you can muster to bring in talent—and that includes amazing benefits. PEO clients gain access to large group benefits that are usually available only to bigger companies. For example, small and medium-sized GenesisHR clients have access to healthcare benefits offered by Blue Cross Blue Shield of Massachusetts, including several plan options.
3. You get best-in-class retirement benefits (& hands-off administration!).
By outsourcing your 401(k) retirement plan to a PEO, you no longer have to deal with the headache of administration and compliance. Instead, your outsourced provider handles all the details, from participant education to 401(k) reporting. At GenesisHR, we take care of providing notices, enrollment, and testing plan requirements.
4. You always have access to HR experts.
Being an employer comes with many challenges and opportunities, but you’re not alone when you choose a PEO partner to help you with HR tasks. The GenesisHR team continually looks for improvements and develops new action plans for everything from compliance and benefits to onboarding and payroll as our employment relationship grows.
5. You get the HR technology and software your team needs.
If you aren’t currently outsourcing your HR, you might be living in a world where everything is marked and documented on physical paper (worst case) or being tracked in siloed spreadsheets (not much better!). Working with a company like GenesisHR opens the door to a more efficient paperless world. With HR software, you can integrate all your systems so they seamlessly work together, allowing both you and your employees to easily access and manage the data you need.
6. You spend your time on more relevant work.
How many hours do you spend performing tasks that are necessary for the health of your business but are not actually part of your skill set or job description? For example:
- COBRA administration
- Benefits reconciliation
- Collecting information for various tax forms
- Employee record keeping
- 401(k) plans
- Employee handbooks
For many CFOs and managers, the hours are too many to count—but they know those complex, tedious tasks must get done or the company suffers.
There’s a better way to accomplish these tasks: Partner with an HR firm who will manage and oversee them for you. Outsourcing streamlines the process and centralizes all activities in one partner.
7. You can rest assured your business is always compliant.
If you lie awake at night wondering if you’re making HR errors, you need to find a partner who can help. Outsourcing with GenesisHR shields you from potential trouble so you don’t have to worry about losing your business in case of an audit or employee litigation. We’ll identify issues you didn’t even know to look for, and once they’re discovered, we’ll help you solve them. So you’re not stuck trying to figure out if you’re doing something wrong—or stuck trying to fix it by yourself.
8. You can better manage your costs.
GenesisHR helps you reduce inefficiencies in your business and strategize benefit contribution options that may provide more stability to your budget. Then you’ll have proof that your PEO partnership makes good fiscal sense. Outsourcing small human resources tasks almost always leads to improvements in the management of benefits, HR, and payroll offerings.
9. You can find—and keep—amazing employees.
Employee turnover is one of the costliest aspects of running a business. Not only can you get the benefit offerings you need to recruit top talent, but once you’ve found them, you can make sure they stay by giving them the benefits they want and need. To learn more about how to stop the revolving door of employees and keep workers happy and engaged, check out our free guide: The Employee Lifecycle Roadmap.
What’s your next step?
If you’ve never heard of a PEO, you may want to learn more about what they are and how they operate. This guide is a great starting place. Then, if you have any questions (we bet you will!), get in touch with our experts. We’ll talk specifics about your situation and see how we might be able to partner with you to help your company thrive.