People Management & HR

Is it time to outsource your HR? Ask yourself these 4 questions

  • 5 min Read
  • February 17, 2023

Author

Escalon

Table of Contents

Outsourcing your human resources (HR) services, like payroll processing, benefits administration, labor law compliance, employee relations, and recruitment is one way to almost instantly improve the efficiency of your small business. 

Outsourcing your HR services can save busy business leaders countless hours that would be otherwise wasted on draining administrative tasks — tasks which an HR expert could complete in minutes, with greater accuracy. And outsourcing specialized HR services, like benefits administration, minimizes the risk of non-compliance or administration errors that a less experienced office manager or business leader may make. 

Plus, outsourcing tedious and repetitive HR tasks, like payroll, can help you avoid mistakes that cost you and your employees money. 

Schedule a call today

Curious if your small business is ready for outsourced HR services? Ask yourself these four questions:


1. Do we have the expertise needed to handle HR ourselves?


If you or your staff don’t have HR expertise, or if you’re struggling to keep up with the latest HR regulations, it may be time to consider outsourced HR services. After all, an HR mistake that leads to legal consequences, compliance fees, or extra paperwork is almost guaranteed to cost your small business more than outsourcing these services!

An experienced HR provider can offer your small business the expertise and guidance needed to stay compliant with the latest regulations. They have the ability to manage your HR tasks quickly and effectively, reducing the time spent on each task and the chance of errors. 

2. Do we have the time to keep managing HR?


The second question to ask yourself is if your internal team has time to manage your essential day-to-day HR tasks. 

If you find that HR tasks are taking up too much of your time, or if your staff is struggling to balance HR tasks with other business priorities like sales and growth, outsourcing may be a good solution. A dedicated HR specialist, even one who only serves your company a few hours each week, can lift the load for your internal team.

Outsourced HR services, like payroll processing, benefits administration, compliance, and onboarding reduce your team’s workload and allow them to focus their efforts on tasks that propel your business forward.

3. Are inefficient HR processes bringing us down?


If your HR processes are inefficient or outdated, outsourcing may be a good way to streamline these procedures and improve efficiency. Your outsourced HR specialist can help you identify areas for improvement, and implement best practices to streamline your HR operations. 

Talk to us about how Escalon’s PeopleOps can help you improve HR effectiveness.


Outsourcing your HR services also gives your small business access to innovative HR tools you might not otherwise have been able to afford. Payroll automations, applicant tracking systems that streamline the hiring process, learning management systems for employee training, and performance management software are all examples of tools HR experts can use to improve your small business. 

While you may not have the budget to purchase each of these tech tools, or the knowledge to use them effectively, your outsourced HR team can leverage the best tools for each process — further improving your overall efficiency. 

4. Is my small business growing?


If your business is growing rapidly, it may be challenging to keep up with HR tasks such as recruiting, onboarding, and benefits administration. These tasks may be minor inconveniences now, but as your team grows, so does your HR responsibility.

HR tasks have a way of increasing exponentially. Each new hire brings with them a growing need for payroll processing, benefits administration, compliance paperwork, onboarding processes, training needs, performance reviews, and more. And without a dedicated, experienced HR expert in place, you can quickly find yourself in over your head. 

Outsourced HR services, on the other hand, scale with your team. Today, you may need a few hours of HR support each week. But a year from now, you may benefit from a full-time outsourced HR specialist with a whole team behind them, dedicated to helping your company grow. 

Many small businesses wait until it’s too late — and pay the consequences


Small businesses put off outsourcing their HR services for reasons like cost, fear they’ll lose control of their business operations, or a lack of time. But the very reasons that hold you back are the factors that make outsourcing your HR services one of your most valuable business decisions.

Outsourced HR services can often be more cost-effective than hiring a dedicated HR staff. And the compliance and payroll mistakes your dedicated HR specialist can help you avoid more than cover the cost of their services. 

If you’re concerned about losing control of your business operations, remember that your on-demand HR expert actually provides greater visibility into your HR operations than an office manager with HR experience ever could. HR agencies offer the highest level of skill, compliance, transparency, and reporting.

And if you’re struggling to make time to vet outsourced HR services, that’s one of the biggest signs it’s time to make a plan. You don’t have time and money to waste on tasks that could be delegated to your experienced HR specialist. 

This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage please contact us here.

Schedule a call today

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

People Management & HR

Benefits Administration, What Small Business Need to Know

Benefits administration can be a game-changer for small businesses aiming to attract and retain top talent. While salaries remain an...

Read More
Accounting & Finance

AAP vs. Cash Accounting: Which Method Is Best for Your Growing Business? 

Choosing the right accounting method can significantly impact how you track financial performance, manage taxes, and plan growth. Two common...

Read More
Accounting & Finance

Beyond Bootstrapping: Advanced Cash Flow Management for Scaling Companies 

Bootstrapping—financing growth through internal cash flow—is a hallmark of many successful startups. But as businesses mature past their initial stage,...

Read More
Technology & Security

Building a Scalable Tech Stack: How to Choose the Right Tools for Growth 

In today’s business landscape, technology is more than a convenience—it’s a strategic asset that can supercharge growth. But as you...

Read More
Accounting & Finance

How to Reduce Month-End Close Time Without Sacrificing Accuracy 

The month-end close can feel like a perpetual scramble—collecting invoices, reconciling accounts, fixing last-minute errors. A drawn-out close not only...

Read More
uncategorized

How to Reduce Overhead Costs Without Impacting Productivity 

Overhead costs—from utilities and rent to administrative staffing—can quietly swell until they erode profit margins and slow your ability to...

Read More
Accounting & Finance

How to Structure Your Finance Team as Your Business Scales

Growth triggers a tidal wave of financial complexity, multi-entity operations, new product lines, overseas expansion, or investor relations. If your...

Read More
Accounting & Finance

M&A Readiness: How to Prepare Your Financials for a Successful Acquisition or Sale 

Mergers and acquisitions (M&A) can dramatically alter a company’s trajectory—unlocking new markets, technologies, or customer bases. Yet, many deals stumble...

Read More
Accounting & Finance

Optimizing Working Capital: Strategies to Maximize Liquidity Without Raising Funds 

Working capital: The difference between your current assets and your current liabilities. It’s a key barometer of financial health.  While...

Read More