HR has come a long way over the years. Gone are the days where your human resources department was solely in charge of organizing paperwork and hiring new employees. In fact, you may be surprised how much HR has evolved over the years and what all now falls under its umbrella.
1. HR Helps Develop a Better Workforce
If you choose to invest in HR services for your company, you are almost guaranteeing yourself a better workforce right off the bat. The reason behind this is simple, your HR team is who is responsible for recruiting, training, and development of your new hires. Meaning, this is where the HR professional takes the time and creates a solid plan to ensure each of the new employees you hire is ready for the job you hired him or her for.
Your HR team can also help you create a solid employee handbook which explains the expected level of professionalism from your team, as well as a solid outline of all your company policies, guidelines, and more.
With this resource, you can rest easy knowing everyone on your staff is aware of your company’s mission, values, and goals and how you expect them to act and interact with one another. In turn, this will help your company’s day to day workflow run smoother as everyone is in sync in terms of what is expect from them.
The best part, if you choose to outsource your company’s human resources management, you get to reap all the benefits of having this stronger workforce without having to put as much time and energy personally into the process. Instead of you having to create the training manual and research acceptable company policies, you can have an expert do it for you and you can focus on your business’s more immediate concerns.
2. Saves Your Company Money
There are several ways in which HR can save your company money, especially when you choose to allow an outside source to manage this responsibility for you. For starters, by choosing to outsource your company’s HR, you are freeing yourself up from the frustration and time it takes to focus on non-revenue generating tasks, like payroll, training new staff members, and recruitment. Instead, you can focus all your efforts on growing your business and bettering your company as a whole.
Outsourcing your human resources management can save you even more money as is it stops you from needing to add onto your company’s payroll with additional salaries for staff. It also saves you from having to purchase a larger office space to account for the increase in your workforce.
In summary, it gives you access to a team of industry experts without forcing you to pay full-price for the value. The small service fee or administration cost you have associated with your HR outsourcing will be a drop in the bucket compared to what hiring your own team of experts would cost.
Not to mention, it will also save you in taxes and insurance as you will not have as many employees on your roster nor salaries on your payroll to cover.
3. Ensures Employee Satisfaction
Beyond keeping you, the employer, satisfied with your company’s success, your HR department is also who is responsible for maintaining the satisfaction among your employees. This includes ensuring all members of your staff are treated fairly, identifying common concerns, conflict resolution, and so on.
Although we don’t like to think about it, you cannot please everyone who comes and works for your company. However, you can turn those negative experiences into valuable learning opportunities if you have the right HR staff behind you.
For example, you can learn ways to better improve your management style or company procedures through well-executed exit interviews with employees leaving the company. You can also gain valuable insight through employee surveys and focus groups, all implemented by your HR department.
In the long run, you can use the information you gather from these findings to discover areas of improvement within your company, as well as use it as a way to better evaluate future job applicants.
4. Employee Benefits
In today’s job market, your employee benefits program can be the final touch your company needs to attract solid applicants. It could also be the deciding factor in why a candidate chooses to accept an offer from you and not your competition.
To take it a step further, as a possible small business owner, you may not have the resources to offer an employee benefits program. Therefore, you are missing out on potential good hires because these candidates need a job that can offer them essential coverages, like health care, 401k, life insurance, and short-term disability.
However, if you have an HR department through a larger partner agency, like INVO PEO, you can give your employees all of these benefits, as well as a variety of other perks to attract the right team to your business. Even better, you won’t have to worry about answering the questions or helping fill out the paperwork as you will have a dedicated staff who can manage much of this responsibility for you.
5. Keeps Your Business Legally Compliant
Last, but not least, HR is important because it helps protect your business assets in terms of legal liability. Not only does it ensure your business practices are compliant with all ADA and OSHA regulations, it also ensures all your company records are complete and well-organized in case your business gets audited. This alone can save you from costly fines and headaches down the road.
If you choose to work with an outsourced HR department, you are also saving your company from having to worry about the threat of lawsuits from employees, including wrongful termination and safety violations. Now, instead of this headache being your responsibility, it is theirs because it is their job to ensure your company is following all the correct protocol.