Click here to get the Buyers Guide - Free 10 Problems Outsourcing Your HR Can Help You Solve1. Time
Outsourcing your HR removes non-productive tasks that take away time and resources so you can focus on bottom line activities such as strategic planning, marketing, and customer service. Could you make more money if you more had time to work your business? Time is money in business.
2. Cash Flow
Outsourcing improves your cash-flow by integrating most of your employee cost-centers into a single cost factor per $100 of payroll; including employer matching FICA, FUTA, SUTA, Work Comp, Administrative Overhead, and employee benefits.
Your cash flows in “real-time” right along with your business income.
3. Workers' Compensation
Outsourcing makes buying and maintaining work comp easier than ever. No more BIG down payments. No more year-end premium audits. Because your work comp is built into your Outsourcing service fee, you only pay for the insurance you need as it’s utilized. And best of all, Outsourcing companies have BIG buying power that can save you money by using their insurance policies.
4. Employee Benefits
Outsourcing companies have many “turnkey” benefit plans in place for your employees. Imagine instantly adding a 401(k) plan, a Section 125, Group Dental, Life, and other valuable benefits to your business without spending a fortune. And best of all, the Outsourcing company manages the programs, payroll deductions, and benefit records- making employee benefits easier than ever to provide and manage.
5. Government Compliance
Outsourcing companies simplify all the rules and regulations associated with employing people. They can assist you in complying with all federal, state, and local laws and statutes. Outsourcing provides you with legally required employee forms and paperwork. They even maintain and store your employee files.
Outsourcing with a national company also allows you to employ in all 50 states without the filing and compliance issues. The outsourcing company is already established for any employees you may add.
6. Human Resources
Outsourcing companies act as your own personal HR Department, assisting with employee handbooks, job descriptions, record management, supervisory training and conflict resolution.
Do your business practices and policies protect you from employee lawsuits? Outsourcing provides a reliable source to get your employee-related questions answered by HR professionals.
7. Operating Leverage
Outsourcing creates operating leverage for businesses by creating a fixed cost for employing people. Rather than having to increase your internal investment in human capital and equipment to keep up with external growth, the Outsourcing arrangement provides a predictable mechanism that allows you to increase profits at a greater rate than internal costs.
8. Employee Turnover
Outsourcing reduces turnover be establishing better systems, policies and benefit packages. Turnover can cost your business thousands of dollars a year in lost production and employee re-training. A good Outsourcing will help keep your employees loyal and motivated.
Many outsourcing companies include employee development training in their offering providing you with this critical yet often “un-budgeted” benefit.
9. Risk Management
Outsourcing can really benefit businesses with work comp experience modifiers above 1.00. They can offer sound advice for improving workplace safety and preventing claims from occurring. They will proactively manage your comp claims and work with you to reduce claim costs and investigate potential fraudulence.
Outsourcing solves each of these problems by becoming a co-employer with you.
10. Payroll & Taxes
The Outsourcing Company issues paychecks, W-2’s, direct deposits and tax deposits. They assume your tax liabilities and responsibilities as the IRS employer of record. This co-employment agreement and payroll administration makes everything possible for employers.
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