Why You Should Consider Outsourcing Essential HR

August 19, 2024
10 minute read

Company culture is a reflection of your workplace and the people within it, and in today’s day and age, it’s more important than ever—especially if you’re looking to attract and retain team members. 

As the office evolves into its modern state—emphasizing community and focusing on the people aspect of the business—it’s only natural that the focus of HR shifts as well. If you have an internal HR department, they need time and space to foster cultural and strategic initiatives related to the organization’s employees, not just support the administrative side of HR. 

The Role of HR in Today’s Workplace

The role of HR is changing in today’s workplace; they are not there to onboard new employees or take care of payroll. Companies with the highest retention rates have dedicated HR initiatives that create and nurture your company’s work culture. If your HR department doesn’t have time and space to do so, these initiatives fall to the wayside, creating a disconnect between your team, core values, and ultimately your culture.  

By investing in your culture, you’re reinvesting in your business. A study by Glassdoor found that “companies with strong cultures had a turnover rate of just 13.9% compared to 48.4% for companies with weak cultures.” Every time you experience turnover, you have to spend time, money, and resources to onboard and train new employees. It pays to retain staff. 

That’s why outsourcing time-consuming but essential HR tasks (e.g., taking care of payroll, completing background checks, onboarding new employees, and handling handbook updates) could be beneficial for you to consider. It allows your HR team to focus on what they do best: supporting the people within your organization and the development of the company culture as a whole. 

Your Best Option for Outsourcing Essential HR

If you’re looking to create more time and space for your HR team (no matter how big or small), one of the best options to consider is hiring a Professional Employer Organization (PEO), which essentially operates as an outsourced HR provider. Why? Because businesses that partner with PEOs see greater growth, retain their employees at higher rates, and are less likely to go out of business

A PEO handles a variety of operations relating to benefits, payroll, HR, and administrative tasks. Most companies find great relief from working with a PEO, especially with onboarding and employee relation tasks. From helping update handbook policies to difficult HR conversations, there are a wide variety of ways a PEO can help with HR so your team can focus on business outcomes. Here are just a few of the tasks PEOs can support:

  • Payroll administration + tax filings
  • Employee handbook development + updates
  • Employee relations + termination support
  • Template PTO establishment + tracking
  • Employee onboarding
  • Ancillary benefits insurance administration (dental, vision, disability, life)
  • ACA compliance tracking + report
  • Workers compensation administration
  • Background checks
  • Employee Practices Liability Insurance (EPLI)
  • Health insurance administration
  • Benefits consultation

Regardless of the task, a PEO should operate as a trusted advisor as well as tactical support. Every company is different, so it’s important to talk through your needs, then create a plan that makes the most sense for you. 

Retain Your Employees + Increase Your ROI

Outsourcing your essential HR can do a world of wonders for your business, especially as it relates to retention. If you want to keep your people, then company culture needs to be a priority. 

Interested in exploring a fractional HR provider? Download our PEO Buying Checklist to learn more, or reach out to us to begin the conversation over your organization’s HR needs. We’d love to chat about how we can help you support your people so you can focus on business outcomes.