HR Outsourcing is a hot topic.  Based on studies by the Small Business Administration, the owners of small businesses spend anywhere from 7 to 25 percent of their time dealing with employee-related human resources paperwork. These functions include benefits such as healthcare, retirement, and recruitment as well as day to day operations like payroll, for example. For a small business owner, dealing with HR is not one of the most effective uses of time. By outsourcing their HR needs, however, they can free up time that can be dedicated to other business functions and, in most cases, save money.

When outsourcing HR to a Professional Employer Organization, also know an as PEO or, an Administrative Service Organization, ASO, small business owners can rest assured knowing that their operations are in capable hands. These professionals possess a vast amount of experience and expertise that allow them to adequately handle all human resource related issues. When compared to the cost of hiring in-house specialists for everything from payroll to benefits coordination, the cost of outsourcing to a team of experts is usually considerably more affordable.

HR Outsourcing Available 24 x 7

Unlike traditional in-house HR staff, outsourced HR personnel is often available 24 hours a day, 7 days a week. This allows employees and business owners to work with human resources even after normal business hours. Many HR providers also offer web-based services that allow users to log into a secure server from most anywhere. With online tools, small business employees can also manage their accounts through self-service options. When employees can manage their own accounts from home, it eliminates the need to utilize work time to deal with the HR department.

Reducing costs with HR Outsourcing

For most small businesses who deal with all the elements of HR in-house, the cost is astronomical. In addition to the monetary cost of paying specialists for various human resources sectors such as payroll, benefits, tax filing, and worker’s compensation, countless hours are spent on these tasks that could be handled by an outside source easily and more efficiently.

The benefits of small businesses outsourcing HR are not limited to the financial aspects. In addition to saving money, HR outsourcing saves time and provides business owners with the peace of mind knowing that their HR issues are being handled by highly qualified professionals with years of training and experience. For the owner of a small business, the peace of mind and affordability of HR outsourcing often leads to increased productivity and the success that comes from having highly trained processionals managing their most important documents.