The Benefits of Outsourcing Your Small Business's HR

As a small business owner, you probably wear many hats to ensure your business's proper management. Human resources tasks can be easy to overlook in favor of your business's various daily operational needs. Unfortunately, neglecting this vital aspect of your business can negatively impact its growth. These are five reasons to consider hr outsourcing.

Ensure Compliance

Small business owners often assume the role of their company's human resources administrator by default. If you fall into that category, you can easily find yourself subject to severe fines if you neglect to understand and comply with complex federal human resources regulations regarding:

  • Wages

  • Overtime

  • Discrimination

  • Benefits

  • Safety

Outsourcing the management of your small business's human resources can ensure that you remain compliant and up-to-date with employee laws and standards without having to be an expert in these areas yourself.

Avoid The Cost of Another Employee

If you are like most small business owners, you probably don't have the resources necessary to add a full-time, dedicated human resources specialist to your staff. By outsourcing this role, you can avoid paying benefits and wages for another employee and never worry about a lag in services due to vacation, sick days or resignations. A practical alternative is to hire a company that focuses exclusively on providing HR services to multiple companies to reduce your costs dramatically.

Make Better Hires

Your staff is vital to the success of your business. Recruiting, interviewing and hiring the right people takes careful consideration, insight and time. Working with an experienced HR company that screens candidates on your behalf can ensure that you only consider those with the appropriate skills, background, and career goals that suit your business's needs. Onboarding of new hires entails a significant investment of resources. A dedicated HR provider can help prevent unnecessary turnover to avoid wasting your time and money.

Manage Employee Benefits

Regardless of your company's size, it is becoming increasingly necessary to provide specific benefits if you want to attract and retain top talent. Many small business owners do not have the time to keep track of enrollment and renewal dates or filing deadlines for health and dental insurance, 401(k) plans or workers' compensation claims. Mistakes or misunderstandings concerning these benefits can lead to their accidental termination or excessive fees due to poor choices.

Manage Payroll

For most small businesses, payroll represents a significant expenditure that eats into profits. Sustaining a staff involves a considerable time expenditure and monetary cost. Depending on how frequently you pay your employees, you must calculate each person's specific pay, individual benefits and state and federal tax deductions. Keeping track of direct deposits and issuing checks is also necessary, depending on how each employee prefers to receive payment. You must also calculate and pay your quarterly payroll taxes. By outsourcing these HR tasks, you can free up your time and avoid oversights and errors that can negatively impact your employees and lead to government fines.

If HR administration prevents you from focusing on your business's daily operation, SynchronyHR can help you get back to what you do best.

HR Outsourcing With SynchonyHR

When you have an experienced HR company working for you, your HR task management becomes a lot more manageable. Working with an HR leader takes the worry out of managing your workforce and helps you ensure that your personnel has what they need. Outsourcing your HR tasks assures that the things that you need help with get done promptly, compliantly, and consistently. Here are some of the different ways that SynchronyHR can help your growing business manage a workforce of any size.

Recruiting and Onboarding

When you outsource HR functions, you can improve the quality of your hiring process substantially. Experienced HR professionals can help you find the right fit for a job role and perform comprehensive background checks. They can also facilitate a fast and efficient onboarding process, ensuring that nothing gets overlooked.

Payroll Management

Payroll is one of a business’ most important HR responsibilities. Without fail, paying staff has to happen correctly and on time. In addition to just calculating hours and factoring in overtime or bonuses, any amounts withheld must be deducted correctly.

HR outsourcing ensures that taxes, benefits, and other withholdings must be calculated precisely. Information about withholdings has to be available to employees in a way that they can easily understand. HR professionals are experienced in making sure that payroll is done reliably and accurately, and they can help answer difficult questions that you or your staff may have.

Benefits Administration

Managing employee benefits can be somewhat burdensome for a small HR department. A lot of work is involved in helping people enroll in the right benefits and ensuring that enrollment and payment information is correctly relayed to a benefits provider. Moreover, it is common for staff to have difficult or time-sensitive questions about their benefits that you may not readily have the answers to.

Human resources outsourcing streamlines your benefits administration. You can have access to help when you need it, and you can give your workforce direct access to knowledgeable HR staff who can answer their toughest benefits questions.

HR Compliance

Employment practices liability has to be a cause for concern for small and large business owners alike. You have to assure that every aspect of your workforce management complies with all state and federal laws. Staying vigilant about compliance can be difficult when laws are continually changing.

Working with a professional HR outsourcing company can give you a thorough review of your business’ existing policies and procedures to ensure that they are compliant with all applicable law in the jurisdiction where your business operates. Professional HR insight can help you achieve not only the minimum threshold for compliance but rather adopt the best possible policies and procedures for managing employees.

Ultimately, every company’s HR management needs are different. Whether you want help with a few specific tasks or you would like to delegate the majority of your HR functions, SynchronyHR can offer you the resources that you need to enhance your HR administration and support your dynamic workforce. Reach out to SynchronyHR for customized HR solutions that will benefit both your business and its employees.

The Ins and Outs of Outsourcing HR for Small Business Owners

You're in the planning stages of starting a small business and want to ensure you have everything lined up to boost your chances of success. Bigger, more-established companies have access to resources that small business owners don't, but that doesn't mean you must go without. For human resources, SynchronyHR wants to ensure you have all the facts on HR outsourcing, a vital aspect of business operation.

Limit Legal Risks

A lack of business knowledge may lead to legal risks, which can tarnish your business's reputation and cost money. By outsourcing administrative tasks like HR, you reduce your liabilities. Even if you do a bit of legal research on your own, HR professionals stay up-to-date on the latest changes to regulations and rules. You do not want to learn of a new statute after you break it, which could come at a substantial cost.

Save Money

Rather than focus on the price of outsourcing HR solutions, think about how much you can save by leaving the task to those with more experience. Small businesses save money by not housing HR departments within the company, which means you free up funds for other areas of your operation.

Access to Additional Services 

Another advantage of outsourcing human resources functions is that you gain access to more HR services. Additional services may help you attract and retain top-performing talent, a perk that can take your business to the next level in a way that you couldn't accomplish on your own. 

Focus on Your Company 

By tending to HR on your own, you have less time to concentrate on other aspects of operating a small business. Depending on your chosen industry, you may have little experience or knowledge of benefits administration, performance management, payroll benefits and payroll taxes. Human resources outsourcing lets you focus on what you do best while an experienced HR staff does what they do best. 

Hire Who You Need

Just as you can pay freelance workers as independent contractors, the same applies to outsourcing HR. Because you don't have HR employees, you do not have to worry about spending money on benefits and training. Further, you can let your HR team handle recruiting, which saves you time on interviewing and evaluating job candidates.

Reduce Labor Cost

Related to only hiring the employees you need, leaving HR tasks to outsourced professionals means that you reduce your labor costs. You gain access to top talent without offering a top salary. Think of how much you may spend on a single HR employee's salary, incentives and benefits. That's more funds that you can funnel back into your small business and your essential work staff.

Reduce Control 

One disadvantage of outsourcing HR is that you must deal with the fact that the company has other clients. That may mean you do not keep in touch with your HR department as much as you'd like. Think about whether you care about receiving immediate responses to emails and phone calls.

Do you think relying on HR outsourcing offers the biggest benefit to your small business? To find out more, reach out to us here at SynchronyHR.


4 Areas of HR Support You Can Find in a PEO

Human resources functions are generally some of the first considerations for outsourcing that small business owners pursue. The HR outsourcing process can be complex if you don’t optimize which administrative tasks are chosen for outsourcing. With Synchrony HR, we guide you through the best HR solutions so you can focus on running your business. Here’s a quick breakdown of the functions that are conducive to outsourcing.

Finding Help With Compensation

When looking at company compensation, it is usually much more than just printing payroll checks. Job evaluation systems and company surveys over salary are other components that HR departments are tasked with handling. Though these can often be done in house with little hassle for a small company, gaining 50 employees or more can turn a simple system into something that requires considerably more time and management. Companies may look to outsource this area because of the cost savings to the department and the ability to improve customer service expectations of the employees.

Synchrony HR has experienced staff waiting to help you organize and efficiently administer payroll benefits to your employees. Our firm has access to tech and software systems that reduce human error and generate accurate, up to the moment reporting. This is an important benefit when you consider the implications of errors on payroll taxes and reporting. Your company is in a better position to meet filing deadlines and to meet your deposit requirements.

Getting an Edge With Software Solutions

Just as professional employers organizations rely on industry-specific software for help with benefits administration and benefits management, many HR outsourcing firms will share or co-host software with your company to help you with HR tasks. In these cases, the HR vendor retains control of certain aspects while the client (or your business) takes care of other compensation administration functions. For the most part, software sharing like this deals with employee self-service portals concerning digital payroll stubs or YTD information.

Having Help With Workforce Administration

In addition to overseeing payroll benefits, human resources outsourcing can also undertake recruiting new talent for a company. Many organizations find that there is more organization and consistency when outsourcing these needs when compared to burdening the HR staff with sourcing good help. A PEO is also able to help with workforce compliance, either with certifications, dealing with workers’ compensation claims, or addressing and updating policies and procedures. Your company still maintains total control of establishing these policies or training requirements. The PEO ensures data management and record-keeping.

Keeping Control of Benefits Administration

HR professionals can get swamped with the burden of keeping up with employee benefits, with the average HR managers having to spend an estimated 30% of their time in this area. In addition to sourcing plans, verifying enrollment, and answering employee questions, there are also concerns about changing legislation that requires updates or new programs. Rather than getting bogged down or falling out of compliance, a third party PEO like Synchrony HR can handle this for your company. Our experts take care of you, your employees, and your company’s compliance.

Choosing HR Outsourcing

Knowing how these areas of HR operations will benefit from outsourcing, turn to Synchrony HR as your PEO partner. From HR support to risk management, we have what you need to take the hassle of human resources. Give us a call at 314-222-5770 to develop a customized HR plan for your company.


Do These Common HR Issues Apply to Your Small Business?

While you enjoy being a small business owner, you want to do your part to get ahead of common employer and employee issues. Do you recognize HR complications common to small businesses? Here at SynchronyHR, we not only want to help you meet all your HR outsourcing needs, but we also want to help you identify common HR issues and devise HR solutions. See if any of the following sound familiar.

Stressful Hiring Process

You want to hire the most qualified professionals for your small business, but your current hiring process may hinder more than help. Without the right people handling administrative tasks during the hiring process, you may spend too much time interviewing and vetting candidates. The longer you go with inadequate or nonexistent human resources functions for hiring, the less time you spend on other business matters. Draft well-targeted and clear job descriptions with insight from an experienced HR staff.

Old Employee Handbook

Do not overlook the importance of a well-assembled employee handbook. HR departments help craft employee handbooks, which break down your company culture and expectations for your staff. Once small business owners have a handbook, it is a good idea to have HR professionals occasionally update it when the work environment shifts or they take the business in a new direction. Neglecting to refresh handbooks may lead to legal complications and misunderstandings.

Poorly Trained Employees & an Unsafe Work Environment

Human resources outsourcing better ensures you have access to the proper resources to show your new hires the ropes, which helps them fit in with your company and better understand their job role. Business owners with 50 employees or fewer may lack the time to train their team the way they want to, which may result in costly errors. Further, poorly trained employees may suffer avoidable injuries on the job if they do not know how to use dangerous equipment or do not receive training on workplace hazards.

Insufficient Payroll Practices

Besides benefits administration and performance management, you may also need house HR professionals to assist you with payroll, payroll benefits and payroll taxes. Like many other business owners, you may not know much about payroll management and taxes, a lack of knowledge that may cost you more in the long term than you realize. You do not want to end up on the IRS's bad side by incurring avoidable penalties because of payroll compliance issues. You can delegate such HR tasks when you outsource HR functions.

Lack of Employee Benefits

Another hurdle that small business owners overcome by working with professional employer organizations is offering desirable employee benefits. Some job candidates focus more on company benefits and less on compensation. As a business owner, you may know what benefits today's employees want, but a PEO professional helps you save time and money on those benefits.

You do not have to feel stuck dealing with prevalent HR management woes. For help with your house HR needs, reach out to us here at SynchronyHR. Submit a contact form whenever you feel ready to take your small business to the next level.


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