Human resources take care of the employees, by ensuring their welfare in the company. They are responsible for recruitment, hiring, onboarding, training and managing the payroll. With their efforts, stability, in the office environment, is maintained. HR executives are a crucial part of any business.
While established enterprises have built their internal HR department, start-ups often have a limited budget to hire their own team. They need to approach to the banks for the resources they need. However, there’s another way for small companies or start-ups to ensure a smooth hiring or recruiting process. They can tie up with HR firms and outsource the hiring, training and other recruiting tasks to these specialized firms, which will seamlessly perform all the mentioned tasks in the most efficient way.
Key Benefits Of Outsourcing HR:
- The external teams use different software for better HR management. With SaaS software, they can streamline their duties such as payroll, onboarding, and training in one place.
- They are experts in handling and filing documentary requirements, particularly employees’ social security and tax documents. Employers can assure that these teams do it with high accuracy and fewer errors to prevent penalties.
- With outsourcing HR, employers may even get the opportunity to expand the benefits they give to their employees. It can include life insurance policies, wellness training, retirement plans, and bigger bonuses and incentives.
- Outsourcing, in general, can help businesses generate huge savings. It can help them save up to 70% on labor costs and equipment especially when they outsource offshore.
HR Outsourcing FSQ's
No, you will not. In the case of HR outsourcing, employees remain yours throughout.
Yes, it is advisable to provide all employees with a written statement of the particulars of employment. The employee handbook enables you to set out in detail what you expect from your staff.
If the managers or employees have salary, leaves or any other employment benefit-related doubt, they can contact the HR manager of the outsourced team, who is responsible for recruitment, payroll, workers compensation, tax administration, etc.
Firstly, the outsourcing company try and understand your organization, people and culture. Post that, the company determines what areas of HR it wants to take on. Finally, it integrates the two to create the best service for your organization. It handles all HR needs starting from employee on-boarding, training, and salary disbursing to devising Various HR policies and employee-interaction programs.
Many variables determine the cost. However, the pricing often depends on your requirements.
A PEO is a professional employer organization to which companies outsource a majority of their HR functions, i.e. payroll, benefits, workers’ compensation, tax administration, etc. In a PEO, your employees become the PEO’s employees and it leases them back to you. In such a case, you need to pay a certain fee, based on salaries, to the PEO. Often, your fees go high, especially, when you want to reward your employees with higher pay.
stands for Human Resources Outsourcing. With an HRO agreement, you can negotiate HR Strategies to facilitate one or more of your human resource functions, under your own FEIN(Federal Employee Identification Number), and not under a co-employment model.
An HRO firm allows companies to choose and pick the services it wants to outsource, whereas, a PEO takes care of all HR functions.
In the case of the PEO arrangement, HR Strategies administers payment of wages to employees and payment of taxes to the proper agencies, under our FEIN number. However, the funds, to cover your employees’ wages and taxes, need to be provided by you.