IT HAS BECOME ABSOLUTELY VITAL FOR SMALL AND MIDSIZED BUSINESSES TO OUTSOURCE HR!
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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.
IT HAS BECOME ABSOLUTELY VITAL FOR SMALL AND MIDSIZED BUSINESSES TO OUTSOURCE HR!
- 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.