When it comes to providing Human Resource Management in your company, you basically have three options:
- Do it yourself. In reality, not many companies, especially smaller companies, handle all HR functions in house. Even large companies realize it is not cost effective. So the facts are that when you “do it yourself” it is a combination of in house, out sourced and just ignored.
- Subcontract to numerous service providers.
Most companies today operate under this model. For example, most organizations outsource payroll preparation, health & welfare benefits shopping/administration and workers’ compensation shopping/ administration. The problem is that when you hire or fire an employee, you the client, are left with contacting all these vendors, hoping they get the timing correct and that they communicate with one another. The company is left with auditing all these vendors and is ultimately responsible. Not a very effective use of time!
- Select a single source provider like HCC that can handle all of your human resource needs. When you hire or fire an employee, won’t it be wonderful to have one number to call and have the peace of mind that all employee-related matters would be handled. In addition, you have a team of professionals, including an HR professional, assigned to your account to help guide you. Let’s face it, labor cost is usually the most expensive aspect of your business.
Advantages of Outsourcing
In summary, below are the major reasons a company should consider outsourcing as an option.
- Extensive Human Resources technology & systems
- Payroll, including compliance and reporting
- Professional Human Resource staff
- Human Resource compliance, processes & reporting
- Workers’ compensation insurance and processes
- Better Benefits
- Reduced Risk
- Improved employee retention