Vital Reasons Why Small to Midsized Businesses Should Outsource HR!

Don’t have HR Expertise or the work culture you want?
Can’t find “A” players for your team and don’t want to get into HR legal issues?
Need to cut costs and don’t have enough hours in a day?
Try outsourcing HR….

Outsourcing is not a new trend; it has gained momentum since the economic rest of 2008. In the 90’s we used outsourcing which referred to large corporations that stationed jobs offshore. Today, outsourcing simply refers to subcontracting an internal business function to an external provider that brings with them a wealth of experience and expertise to complete a fundamental function. Most small to midsized businesses outsource functions such as payroll; accounting; and similar tasks for the reason of proficiency; expertise and costs. Entrepreneurs’ take pride in their existence; they don’t rely on others to “get the job done”; achieve their aspirations and goals with their own flair; that being said an increasing number of entrepreneurs’ are witnessing their businesses (and their bank accounts) flourish as a result of strategic outsourcing.

HR Outsourcing saves money
Let’s look at the numbers…total yearly costs (salary; bonus; benefit and pension costs; payroll, taxes, office space; laptop; software; mobile; and business expenses) for an entrepreneur to employ an HR Generalist with 2 years’ experience for a small business (50 employees or less) is between $75,000 to $85,000. To employ an HR manager with over 5 years’ experience is a staggering $120,000 annually. Still not convinced?? Most HR professionals with less than 5 years’ experience are not business savvy, they will have difficulty relating to an entrepreneur whose subservience to purpose is to nurture their business and watch it prosper.