Is your business considering outsourcing your HR? If so, you’re not alone. HR outsourcing is becoming more and more popular as businesses learn that they don’t need an entire team of HR employees at their disposal. In fact, some companies have found that they don’t even need a single person in human resources if they get their services from a standalone company such as Smarter HR Solutions.

While it can be nice to have someone on staff dealing with your human resource tasks, it can also be very expensive to have an HR employee on staff full time. HR salaries start at around $44,000 a year, with the average being around $65,000. HR managers can make more than $100,000 a year. Wouldn’t it be nice to be able to cut back on some of those salaries? Here are three ways that you can save money by using an HR outsourcing service.

You’re Not Paying For Employee Downtime

When you hire someone like us to be your HR consultant, you still have to pay for their services. So saying that “you won’t have to pay someone a salary to do it,” is a bit misleading, because there are still costs associated with HR outsourcing.

A better way to say it is “you’re not paying for someone to eat cake at an office birthday party.” So much of an employee’s time is spent not doing employee things. Sometimes it’s due to long lunches, other times it’s because the employee might be slow at a particular task (see “You’re Getting Specialists” below). If your solution to these problems is to hire an assistant HR specialist to help the one you already have, then perhaps it is fair to say that we’re saving you money on salaries.

On the other hand, you might hire an HR specialist only to find that they are so efficient at their job that they actually have quite a bit of downtime. If that’s the case, then you’re paying someone even when they’re not working.

You’re Not Paying Employee Benefits

When most employees take a look at their paychecks, they are much too distracted by the amount of taxes they are paying to notice the ways in which you are helping them out. For instance, your company might be providing them with days off, sick time, HSA matches, and the like.

What we’re saying is, there are many benefits your company offers that aren’t salary-related. And all of those benefits are ones that you don’t have to pay to an HR company when you decide to outsource your human resources.

You’re Getting Specialists

When you make use of HR outsourcing, you don’t have to rely on any single employee to take care of all of your HR needs. After all, there’s a reason that large companies have so many people in human resources: they need specialists.

Think of it this way. If you are a company that is considering hiring a single HR representative, what are the chances that they’re going to be equally amazing at hiring, firing, negotiating health insurance plans, dealing with harassment training, finding the right 401k, and keeping track of every other benefit you are offering to employees? A single employee will almost certainly have weak spots, and if that weak spot is in negotiating then it’s certainly going to cost your business money.

When you choose an HR consulting firm like Smarter HR Solutions, you’re not just getting a single person working for you. We have specialists too, so it’s more likely you’ll find someone to handle your particular needs.

Is HR Outsourcing For Every Company?

Larger companies often have HR departments for a reason. But larger companies also don’t care as much if they’re wasting money here and there!

Is HR outsourcing and consulting right for every company? Not necessarily. But for many small companies that either don’t have the resources to hire a dedicated human resources department or are growing so fast that they need the HR recruiting expert to fill the empty positions, it tends to make sense.

Find Out More!

Is outsourcing HR the right move for your company? The best way to find out is to talk to an HR consulting firm like Smarter HR Solutions. We’ll take a look at your business and give you our professional opinion on the best option for your company. Click here to get the process started with a free consultation!