HR is specialized, extensive, and exacting. It includes a variety of different functions, from employee relations and compliance to compensation and benefits. Most businesses do not have the time to become HR experts and they can gain from expertise, technology, and resources when they outsource HR functions.

This gives them more time to focus on finding investors, winning new customers, and other activities that help their businesses to grow and prosper.

Comply with labor laws and regulations

All businesses have to comply with federal, state and local labor laws and regulations. For instance, the Fair Labor Standards Act (FLSA) governs aspects of employment like employee classification and overtime hours.

HR is responsible for ensuring that businesses are compliant with many different laws that change frequently and new regulations that are always being implemented. An inability to keep up can result in non-compliance, which can have serious financial implications.

Many businesses choose human resources outsourcing to remain compliant. SmartHRinc offers expert HR management to companies in the DC metro area with between 15 to 150 employees. Each client is paired with a Smart HR consultant who serves as their HR director. It is currently seeking experienced HR professionals to join the team.

Reduce costs

One of the major benefits of outsourcing HR functions is that it costs less than maintaining a fully-fledged in-house HR department. Just hiring an HR Manager can cost a small business a great deal of money. HR really requires a full team with expertise in different areas. Hiring a whole team means paying salaries, benefits, taxes and workers’ comp and having a workplace large enough to accommodate them.

An HR department does not generate any revenue, and maintaining an in-house HR department requires many resources. Businesses can really benefit from the technology and support they gain from outsourcing HR, which may otherwise be unaffordable to them.

Save time

With all the different functions HR has to manage, there are many administrative responsibilities associated with maintaining them internally. These tasks can be incredibly time-consuming and onerous.

HR specialists know all the best practices for HR functions, stay up to date with any changes in laws and know where the technology is going. Outsourcing HR, therefore, helps to streamline the HR process, resulting in more efficient management and administration. This can free up valuable time staff can use for growing business operations that improve the bottom line.

Gain access to specialized talent

Small businesses usually don’t have the budget to maintain a large HR department. This means that staff often have to juggle many responsibilities and do HR tasks for which they are not really trained.

By outsourcing HR, businesses can ensure that each HR function is handled by an HR professional with a deep understanding of all the processes and regulations, many of which have serious consequences if they are performed poorly.

HR professionals have training and experience in areas such as onboarding, recruiting, performance management, compliance, employee relations and development. They can also provide clients with meaningful benchmarking data in various employment practices, including compensation, paid time off and benefits.

Improve employee satisfaction

Employees are a most important asset to a business and it can be expensive for businesses to keep employing and training new employees if they don’t manage to retain them and keep them happy.

When employees know that employers care about them and give them access to professional training and good benefits, they will be happier and more likely to stay. Many small and medium-sized businesses turn to outsourced HR providers because they can provide a full HR technology stack with integrated HR modules and access to HR professionals.

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