Find Out How HR Outsourcing Can Benefit Your Small Business

The Benefits of HR Outsourcing for Your Business


  • Running a business involves dealing with too many administrative tasks, from processing payroll to keeping up with compliance requirements.
  • HR outsourcing can release businesses from these duties while providing access to better benefits and seasoned experts.
  • At PEOPLE, we provide professional employer solutions to help businesses manage payroll, employee benefits, and other HR-related tasks. Contact us to get started!

As a small business owner, you know how overwhelming administrative HR tasks can be. The never-ending cycle of processing payroll, managing employee benefits, and ensuring compliance can drain your time and energy. However, there’s a way to ease your burden: payroll and HR outsourcing.

By allowing experts to handle some of your HR responsibilities, you can regain precious time, alleviate stress, and ensure your business remains compliant with even the most complex legal requirements.

Curious to learn more about the advantages of outsourcing HR functions? Let’s dive in!

Understanding HR Outsourcing

HR outsourcing is the process of engaging an external service provider to handle designated functions within your small business. These functions may involve payroll and taxes, compliance, HR administration, and various other areas.

By tapping into the knowledge and experience of specialized professionals, your internal HR team can operate more efficiently and dedicate valuable time to their core operations.

If you are a small or mid-sized business, partnering with a Professional Employer Organization (PEO) could be a smart move to outsource HR tasks.

PEOs work under a co-employment agreement. This means that, when you choose a PEO, they assume the role of the employer of record, relieving you of the financial and legal obligations. Usually, PEOs handle areas like payroll, compliance, and benefits administration. This empowers you to concentrate on the operational and strategic elements of your business, maintaining full control.

However, if you need more flexibility, you may opt for an HR outsourcing provider (HRO), which allows you to choose specific services rather than a fixed package.

Keep Your Business Safe by Outsourcing Compliance to Experts

Benefits of HR Outsourcing You Should Know

Whether you decide to join forces with a PEO or hire an HRO provider, outsourcing can be a game-changer for your business.

Let’s explore some of its main advantages:

1. Reduced Costs

Hiring and training an entire HR team can be quite expensive if you are a small business.

According to the Society for Human Resource Management (SHRM), the average cost per hire is nearly $4,700.

By tapping into the knowledge and skills of external service providers, small businesses can make substantial savings, cutting down on payroll expenses, overhead costs, and the need to invest in HR technology.

2. More Time for Strategic Activities

HR professionals at small businesses often juggle many tasks, from handling payroll to ensuring compliance.

By outsourcing their most time-consuming, merely administrative activities, they can focus on the more strategic side of HR that ultimately drives growth, like bringing talented employees on board, providing training opportunities, and more.

3. Get Better Benefits at a More Competitive Price

In a competitive job market, offering an enticing benefits package is vital to attract and retain qualified employees. But this can be quite expensive for small businesses — even more as healthcare costs continue to rise. A recent survey by Small Business for America’s Future shows that:

62% of respondents don’t offer health insurance, mainly hindered by the high cost.

By partnering with a PEO, businesses can gain access to top-notch employee benefits at a more competitive price, including medical plans, 401(k) options, and Employee Assistance Programs for their employees.

4. Minimize the Risk of Non-Compliance

Keeping up with the latest labor laws, tax regulations, and industry regulatory standards can feel like a never-ending challenge. For small businesses, it can be especially daunting as they may not have the necessary resources to stay on top of these constant changes, risking penalties and hefty fines.

However, there’s a valuable solution that can come to their rescue — HR outsourcing. By delegating compliance tasks to professionals, small businesses can rest assured that they are always aligned with the latest regulations.

Simplify Your Business with PEOPLE: HR Outsourcing

Managing a small business often means wearing multiple hats and tackling countless administrative responsibilities. But you don’t have to do it all alone. By teaming up with a dedicated team of payroll and HR experts, you can ease the burden, streamline your operations, and rest easy knowing that your business is in capable hands.

At PEOPLE, we take care of your business’s payroll, compliance, benefits, and other HR tasks, so you can focus on revenue-generating activities.

Contact us for a tailored PEO solution!

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