As a small or medium-sized business owner, you are often limited in the resources and funds available to you for developing your in-house staff. The reality is you must make difficult decisions and prioritize your needs to ensure your business runs smoothly and stays within your budgetary needs.
A common role that is often sacrificed is that of a dedicated HR professional. It is cost-prohibitive in many instances to add a full-time HR representative to your staff. Instead, businesses such as yours will often take the do-it-yourself approach; delegating HR duties to a non-HR team member or take on the duties and responsibilities yourself as the business owner.
While this may appear to be a reasonable solution to save you money, the reality is that this approach can be quite detrimental to your business resulting in lost opportunities and lost cost savings which can, in turn, end up costing your business more down the line. If you are in need of help in Human Resources for your business consider outsourcing these vital functions to an HR expert that can cover your needs successfully and save you time and money now and in the future.
Opportunity Costs
Business owners deal with a full plate of responsibilities day in and day out. Shifting your focus to one aspect of your business often means there is another aspect that is set aside or neglected. Taking on the duties associated with human resources can be time-consuming and tedious due to your lack of expertise and knowledge in this complicated field. This will inevitably end up costing your business more money in various ways.
Revenue Generating Activities
You know your strengths and value when it comes to running your business. Your overall focus should be centered on revenue-generating activities and your core business principles and practices. When you turn away from these aspects of your business to learn about and deal with HR issues, you are sacrificing the opportunity to earn more profits and grow your business doing the valuable work that matters most to you and your company.
Core Business
As a business owner, one of your most vital roles is recognizing when to delegate tasks and work in a more efficient and cost-effective manner. Outsourcing HR duties to a team allows your company to get the experience, knowledge, and perspective of a professional at a fraction of the cost of hiring an in house position for your company. It is no surprise that upfront outsourcing will add to your operational costs since you have been delegating this work to yourself or others within your company lacking HR experience. However, the reality is this move will allow everyone within your company, including yourself, to focus on your core business principles and the work you do best while leaving the HR responsibilities to an experienced and efficient network of professionals.
Cost Savings
When you are a small or medium-sized business every penny counts and any cost-saving opportunities are valuable to the day-to-day functions of your business and its future. By teaming up with a Professional Employer Organization, also known as a PEO, you are making a decision for your business that will not only garner a significant return on investment but will also allow your business to function more efficiently setting you up for further growth and success.
Negotiating rates for benefits including health insurance and worker’s compensation is a process that can easily overwhelm any business owner. As a small or medium-sized business, you are at a disadvantage to find the most competitive rates and discounts available to large corporations. However, a PEO has the unique advantage to pool your business alongside others to find better benefits for lower prices. This will in turn save you money and help you build trust and loyalty with your workforce.
Whether you have recently lost your in-house HR staff or are looking to find specialized HR experience; a PEO will provide a seamless transition to keep your business functioning at its best without the lag of searching for and training a new in-house recruit.
Operational Health
Human Resources is a complex field where tasks can take time to complete accurately. Non-HR professionals can end up taking much longer to complete even the most routine of HR tasks. An HR professional has the experience and wherewithal to get the job done well and quickly.
With HR-related work, even the smallest of errors or changes in laws can result in costly fines or opening your business up to potential liability. Beyond legal ramifications, HR-related discrepancies or delays in areas such as payroll can also cause decreases in employee morale, risking your workforce. A PEO ensures their HR team is up to date on the latest happenings and understands the common errors that can end up costing your business additional unnecessary expenses or headaches.
DIY Human Resources Wastes Time and Money
For businesses such as yours that are in the search for a solution to incorporate the best HR practices in an affordable way, consider outsourcing your HR administrative duties to a PEO. This will allow your business to get professional HR guidance without the exorbitant expense of hiring an in-house HR expert. With a PEO on your side, you can get back to the vital work on the more pressing matters of your business. While a do-it-yourself approach for human resources can be a short term solution in an emergency situation, it should never be the permanent solution for your business. In order to grow your businesses for further success, outsource your HR responsibilities to a PEO that can keep your business moving in the right direction.
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