Pros and Cons of HR Outsourcing

As your small business grows, managing HR tasks can start to feel like a heavy burden.

When that happens, it might mean it's time to outsource to a firm that specializes in HR for small companies.

You know what no small business owner has ever said?

“I started my small company because I thought it sounded fun to handle payroll taxes, health care benefits and the mounds of paperwork I have to do to stay in compliance with HR regulations!”

As your business grows, managing human resources tasks can start to feel like a heavy burden. It might be time to outsource to a firm that specializes in HR for small companies. Here are some pros and cons to help you decide if HR outsourcing could lighten your load.

First, a few pros:

  • HR outsourcing saves money. Hiring and training your own HR staff cuts into time and financial resources. Even after you get an internal staff on board, salary and operations often add up to more than you’d pay for an outside firm to handle the same work.
  • HR outsourcing is adaptable. You can scale up outside help when it’s needed and scale it down when your need is low.
  • And third, outsourcing gives you access to specialists. HR covers a huge array of responsibilities. By outsourcing, you’ll have sophisticated expertise at your fingertips, provided by experienced HR professionals.

And now, a few potential cons to think about:

  • If you outsource, you won’t be able to walk into an HR colleague’s office and talk face-to-face. So, if that’s a concern, make sure you outsource to an HR partner that will sometimes meet with you on site.
  • Outside consultants might not ‘get’ your company culture like an internal staff would. So be sure to choose an outsourcing partner that prioritizes getting to know your company.
  • And, finally, your confidentiality could be at risk. Yes, HR firms are required to protect sensitive employee information. But you should ask your potential outsource partner to verify how they’ll absolutely, positively keep your company’s information confidential.

Is the time right for you to outsource human resources? Axcet HR Solutions is a great resource for learning more. Email us or give us a call today to talk about what HR outsourcing can do for your business.

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