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How outsourcing HR tasks can save your company money

Posted by Kanika Sinha

July 25, 2016

You don’t have to do it all. There, we said it.

One of the traps many young startups fall into is thinking they have to do everything. That just isn't true.

In this article, we’re going to outline how contracting out certain tasks can actually save you cash.

In most instances, using someone else to take care of your human resources’ needs is much cheaper than hiring additional new employees to make up an entire HR department.

What’s more, the larger your company gets, the more money you’ll save by outsourcing your human resources needs.

Let’s look at how outsourcing HR tasks can save your company money

Save on payroll

According to Entrepreneur, the Internal Revenue Service reports that one of out every three employers has been charged for a payroll mistake. They go on to say that those penalties reach into the billions of dollars.

This is just one of the reasons outsourcing HR, and especially payroll, can help your bottom line.

You’ll also reduce employer payroll processing and accounting costs by outsourcing this function of HR.

Your employees will enjoy an automated payroll process, and you’ll never have to worry or deal with employee withholding, garnishments, W-2s and end of year tax info.

Save on recruiting

When you outsource your recruiting, you have the opportunity to save money as well as time.

Experienced HR folks can help you select the proper candidates the first time around. They excel at identifying traits that make a good employee. They take the stress of hiring off of you.

Just think about the time and money you’d spend finding places to put job openings and actually placing the ads, conducting interviews, filling out paperwork for background checks and negotiating pay and benefits.

Outsource your HR, and you never have to worry about any of those things.

Let someone else do the hiring, and they can spend all of your time focusing on hiring the right talent.

You can also let your outsourced HR team handle on-boarding employees, ongoing training, your employee handbook and even terminations.

Firing an employee as well as handling conflicts can be time consuming and uncomfortable. Your outsourced HR group can handle both with professionalism.

Talk to us about how our outsourced business services can help your startup increase efficiency and reduce costs.

Save on insurance management

Let’s face it, insurance isn’t an easy thing to manage. Not only is it confusing, but taking care of it for all of your employees is incredibly time consuming.

Laws are constantly changing, and by hiring an HR company to handle your insurance they take care of staying on top of the latest changes.

You’ll save money because they’ll manage your plans and handling signing employees up for you. The process is streamlined and simplified.

Save on compliance issues

Regulations are multiplying in today’s business world.

Companies are constantly being hit with lawsuits for sexual harassment, safety violations, wrongful termination, and much more.

By outsourcing your HR, not only will they handle this for you, but you’ll save money because they know the ins and outs of the regulations, while you’d have to learn every step of the way.

Final thoughts

Now that you know how outsourcing HR tasks can save your company money, let’s look at a few more benefits of handing the reigns over to someone else.

First, employee turnover in an HR department is never a good thing because then the department lacks continuity. In addition, you can’t just stop some HR tasks, such as payroll, just because your HR payroll person quit.

By outsourcing your HR Task, you ensure none of your company’s core HR functions suffer. You can count on your human resources work getting done the same way week after week.

Lastly, you don’t need to train the company handling your HR outsourcing tasks. They already know what to do. Your outsourcing company makes sure their staff is up-do-date on protocols and can handle anything you throw their way.

They most likely have the latest technology and software to handle the ever-changing HR landscape, while you’d have to spend money to obtain it.

So, give yourself a break. Outsource your human resources task today and free up your company’s time and money.

Want more?

Escalon has helped over 5,000 companies across a range of industries to optimize routine business functions, like HR and payroll, and operate more efficiently. Talk to an expert today.


Kanika Sinha
Kanika Sinha

Kanika is an enthusiastic content writer who craves to push the boundaries and explore uncharted territories. With her exceptional writing skills and in-depth knowledge of business-to-business dynamics, she creates compelling narratives that help businesses achieve tangible ROI. When not hunched over the keyboard, you can find her sweating it out in the gym, or indulging in a marathon of adorable movies with her young son.

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