Companies sometimes get a bad rap for outsourcing essential functions, but there are several good reasons why doing so makes perfect business sense. Efficiency, flexibility, profitability—these are but a few benefits business owners might expect from letting an external team of qualified professionals handle essential elements of their daily operations. But what functions are most appropriate to outsource?

Human resources management is one of the primary functions companies choose to supplement because it encompasses such a broad spectrum of business tasks, like payroll, employee benefits administration, and talent management. Offloading these types of administrative tasks is a smart strategy for businesses, as it allows them to maximize budgets, save time, and—most importantly—focus on core strengths.

Before you decide to supplement your company’s HR efforts, see how outsourcing these tasks can benefit different businesses—and why it might be right for your organization.

Giving Small and Medium-Sized Businesses a Competitive Edge

Smaller business entities don’t typically have the resources, expertise, or—quite frankly—time to accomplish specialty tasks like payroll processing, employment tax reporting, and employee benefits administration. In fact, owners and managers of companies whose staff ranges between 10 and 100 employees often can’t afford to focus on much else aside from core business-growing—and company-sustaining—goals. 

What typically happens in these types of organizations is an employee with some administrative know-how (sometimes, even the business owner themselves) takes on the role of HR as a temporary solution—and ends up spending most of their efforts there. While in the role, they may even realize that HR requires a small team to effectively execute tasks, especially as the number of employees edges upward. This can be a costly expense these businesses simply can’t afford.

Entrepreneurs go into business to realize their vision, not to fill their days with mundane paperwork and personnel management. For them, outsourcing HR allows their companies to provide the basic functions employees expect of an employer at a fraction of the cost of an internal team. They can offer and manage benefits that set them apart from competitors, process payroll accurately and on time for staff, and implement essential risk management functions—all without losing sight of business growth.

A Focus on Profitability for Companies

Since most businesses are concerned with revenue, outsourcing HR functions is a smart move. Doing so frees up funds that otherwise would have been budgeted for the experienced internal teams necessary to effectively run HR in house. 

For less than the cost of one minimum wage employee, businesses can round out their workforce with deep HR expertise and a wealth of services that cover things like payroll and tax reporting. This helps business owners maximize their budgets so they can focus on hiring top-notch talent that strengthens their core competencies.

Supporting Skilled Trades in Employee Safety

By nature, skilled trade jobs tend to be riskier. Skilled trade professionals often operate equipment that may cause injury and they work in environments that sometimes expose them to dangerous elements.

Implementing workplace safety programs—and training employees on how to follow them—can be arduous and time-consuming. As such, skilled trade businesses frequently leverage professional employer organizations (PEOs) like SWBC PEO to assist in the administration of risk management and loss control HR functions that allow them to tap knowledgeable experts who prioritize job safety. These experts can research safety regulations and guidelines, help ensure employees are abiding by them, and—ultimately—help businesses avoid costly penalties or lawsuits. They can also help acquire the training and certifications necessary to bid on specific jobs.

High-risk jobs like skilled trades typically cost employers more in workers’ compensation coverage, too. Some PEOs carry a master workers’ compensation insurance policy for their clients, which helps businesses secure discounted rates for insurance coverage.

Professional, Personal Services That Help You Grow

When business owners identify the need and benefit of outsourcing HR, the next step is finding a PEO they can trust to handle their operations. SWBC PEO provides outsourced HR services to thriving businesses. These vital services can include payroll processing, benefits administration, and workers’ compensation. SWBC PEO acts as a co-employer, sharing employer responsibilities with its client companies to improve benefits packages, reduce HR burdens, and maintain regulatory compliance.

Not all PEOs are created equally. To ensure a successful relationship, partner with one that’s trusted in the industry—and aligns with your business values. At SWBC PEO, we’re personally invested in our clients’ success. We not only hold the most certifications and accreditations in the industry—we also leverage innovative HR technology and integrate seamlessly as a true extension of our clients’ teams to make their business our business.