Outsource Your HR Services
Small, medium and large businesses are all capable of benefitting from outsourced human resources (HR) services. Small businesses are especially prone to benefit from outsourced HR services in various ways but what are the best HR outsourcing companies available today? What typical services do HR outsourcing companies offer?
Management staff in many businesses have not considered using HR services from outside their respective companies. Most people think HR is either in-house or outsourced with no possibilities in-between. The truth is many modern companies are using a hybrid HR scheme to save money and improve overall business operations. How much do typical HR outsourcing services cost today? Read ahead for helpful information on how to outsource your HR services and elevate your business today.
Services an HR outsourcing Company Typically Offers
Many businesses never considered the ability to maintain some HR services in-house, while outsourcing others. HR outsourcing companies offer a wide variety of services all available to help your business save time and money. Knowing what services HR outsourcing companies typically provide helps you make the best decision(s) for your business fast.
Your HR department handles a lot of important tasks all of which are vital to the success of your business. Many of the same services are suitable for outsourced HR companies to handle instead. Employee recruitment and applicant tracking are two HR services vital to growing your business. HR helps locate potential new employees capable of improving your staff and bottom-line. Running background checks helps vet these potential candidates and eliminates those with specific issues and/or criminal records. HR also handles payroll tasks including disbursing checks, scheduling direct deposits and resolving paycheck discrepancies.
Many companies offer health insurance benefit to employees. HR departments oversee employee benefits administration and COBRA insurance. The creation of employee handbooks, scheduling of training seminars, meetings and policy updates are all the collective responsibility of HR department. Your HR department also handles discipline/termination issues involving your employees. Additional services typically handled by HR services include:
- Compliance with federal/state payroll tax regulations.
- Handling paid time-off requests.
- General record keeping.
- Compliance with employment laws.
- Sexual harassment prevention/training.
- Employee Assistance Program (EAP).
- Internal dispute resolutions.
- Staff counseling.
The costs for outsourced HR services vary based on a significantly wide variety of factors. For example, different HR outsourcing companies charge flat fees, hourly rates, monthly, annually, per employee and/or per pay period depending on the types of services provided. Some HR outsourcing companies charge based on a percentage of each employee’s income or a varied combination of all these methods.
Employee recruitment services are commonly billed based on a percentage of each successfully hired employee’s wages. Background checks might be billed at $25-$100 per employee when run through an outsourced HR company. An employee handbook created by an outsourced HR company costs an average range of $1,500-$3,000 per handbook.
HR outsourcing companies charging per employee for specific services such as performance reviews, management-related tasks and employee training might bill at $39-$500 per employee per month. Pricing for outsourced HR services is truly as diverse as the HR job description itself. Therefore, it is essential to carefully weigh out the HR services best to keep in-house and better to outsource. Doing so helps you acquire a complete understanding of the cost-savings and other benefits of outsourcing HR in 2021
How Small Businesses Benefit from Outsourcing HR
Smaller businesses tend to experience the most benefits from outsourcing HR services in modern times. Newer small businesses find outsourcing HR allows them to concentrate on other areas of the company and grow profits faster. Outsourced HR companies sometimes also have access to higher quality insurance benefits packages previously only available to enterprise level corporations. Better employee benefits packages help attract more and better candidates.
Outsourced HR companies help provide neutral/unbiased dispute resolution services. Because third-party services are not familiar with staff, our employees feel comfortable their voices are heard by an organization without prejudice or favoritism. In this way an outsourced HR company helps improve overall company morale. Finally, small businesses potentially save a lot of money outsourcing specific HR services on an as-needed basis instead of paying for a full-time HR staff unused to its potential. As your business expands it is possible to add more in-house HR staff, but for small businesses, especially startups and other new companies, outsourcing HR services helps keep your business on track and within budget all year long.
3 HR Outsourcing Companies You Need to Know
Many high-quality HR outsourcing companies are available in 2021 but several are worthy of special mention. Insperity HR, ADP and Bambee are three such companies. Read below for more information on these 3 top HR outsourcing companies for 2021.
1. Insperity HR
While Insperity HR is excellent for businesses with 5-149 staff members, the company also works exceptionally well for larger businesses with up to 5,000 employees. Employee benefits purchased through Insperity HR offer top-tier perks. Employers save money on workers compensation cases thanks to Insperity HR’s expert experience/assistance. Automated HR services are available via hi-tech proprietary software. Insperity HR pricing is tailored to each company’s requirements.
ADP is a major player in the HR outsourcing industry today. ADP has notable bargaining abilities with healthcare plan providers, which helps your company attract the best candidates and simultaneously save money on benefits packages. ADP is widely considered the best outsourced benefits/tax administrator in 2021. Customized solutions integrate with hundreds of HR/other applications. ADP is best known for its expert risk/compliance guidance.