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.

HR consultancy firms allow small and midsized businesses to outsource their entire HR resources requirements for monthly retainers as low as $2,500 or $30,000 annually. That’s a substantial savings of over $45,000 per year, and the savings does not stop there. Through their work HR consultancy firms will search for alternate ways to reduce your costs and ensure you don’t get into legal hot water!

HR Outsourcing saves time
Imagine the time you could regain with a strategic HR Business Partner, to help nurture you business, to permit you time to spend with your family and not be inundated with vast amounts of paper work; employee performance issues; and HR legal issues just to name a few. Outsourcing your human resources requirements may be the initiative you have been searching for! In addition, you will be able to centre your time on other areas of your business.

HR Outsourcing expands your knowledge base
Outsourcing your human resources requirements will grant you access to HR experts in the field that will become an extension of your company. Through their partnerships, they will immerse themselves into your organization, objectives and culture to offer strategic consulting strategies that will uniquely align with your organization. HR consultants are dedicated to making human capital into a strategic differentiator for their clients. They are prepared to help you strengthen and grow your business. Lastly, outsourcing human resources will enable you to gain knowledge and continue to learn and gather information from industry experts.

HR Outsourcing allows you to focus on your greatest asset “Employees”
For companies to dominate and become a respected leader in their market place, they must invest in their human capital. For companies to become successful they must first start with the “Who” (employees) prior to the “What” (strategies). You must ensure you have the right talent in the correct seats within your organization. Once you have the correct talent you must ensure they are aware of how they will contribute to your company’s goals and values. Furthermore, this will permit you to merge a culture of discipline with an ethic of entrepreneurship and self-determination with a focus on results. The biggest obstacle for entrepreneurs’ is locating the right talent they can trust to ensure they are making the correct decisions for the company to prosper. Lack of trust slows your company down, makes you inefficient and costs you money and time. Outsourcing your human resources to a human capital firm that will take the time to understand your business and your HR requirements will allow to you to build a great long lasting company.

HR Outsourcing builds your employer brand
Your employer brand is critical for the image of your company. This image is built upon reputation and accessibility. Perhaps one of the prevalent benefits (and often the most overlooked) of outsourcing your human resources requirements is that it will provide your business with a professional and polished image. It will also permit you time and resources to focus on preserving your core. Lastly, outsourcing human resources will aid in managing a temporary or permanent increase or decrease, in business and will serve as a catalyst for major growth.

Want Strategic HR Expertise at an affordable rate without hiring someone? Partner with HRPreneur Inc.!
Why Use HRPreneur: HRP offers real-time HR advice and support by using HR best practices from the profession. HRP designs customized HR solutions that fit with your values and culture to build a long lasting great company. HRP offers affordable solutions to retain your top talent and increase ROI. HRP focuses on your key strategic differentiator– YOUR PEOPLE.

Contact Joey Walters Managing Director HRPreneur Inc. at 647-534-4774 or by email

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