5 Tips for Small Business HR Outsourcing

In a bad economy, companies are turning to a variety of money-saving methods. From cutting a few days out of the work week, to eliminating positions, many companies are in a tough position. If you can’t cut down your work week or eliminate a position all together, however, it would be wise to consider HR outsourcing.

Not only does outsourcing your HR team result in one less in-house employee, it takes the stress of workers compensation, health insurance, payroll and tax filing off of your hands. According to CPEHR.com, “In place of current management, the HRO firm takes over some of the cumbersome administrative functions relating to employment.”

To make the most of this cost effective service, consider the following tips.

Set Goals

When you’re outsourcing an in-house position, it’s important that it’s making a difference for your company. The only way to measure that is to benchmark the progress by setting goals. Goal setting is valuable in any business setting as it increases productivity and purpose. In outsourcing, however, it’s an effective way to keep all your teams working together.

• For the company: One of the benefits of outsourcing HR is cost savings in insurance, lawsuits and recruiting. Set savings related goals to be sure you’re getting the most ROI.
• For your HR team: With your HR employees out of house, you want to be sure they are staying on track. Set up goals for the week, month or quarter.

Maintain Open Communication

When you can’t have a department meeting or quick chat in passing, it’s critical that you make communication a priority. Outsourcing-Center.com suggests, “… It is important to merge them through open, honest communication steeped in realistic expectations around how things are going to work.” Be sure to utilize various forms of communication to make it effective:

• Set an email checking schedule to ensure emails are being received and read.
• Set up phone meetings; weekly, daily, whatever you need to stay on the same page.
• Utilize new technology such as video chat to maintain a face to face relationship.

Have a Team

Although you should be wise to choose an HRO company that you trust, it’s important that you have an in-house team working closely with your far-away employees. For important projects, having in-house hands involved can ensure that the job is on track and in line with your over-all goals for the company as a whole, not just the HR department. Thus, choosing the right team will be crucial.

• Include one member of each department involved; IT, Accounting, etc.
• Choose employees that will work well together. For an important project, you want your employees, in-house and outsourced, to be productive and open.
• Only include your outsourced HR employee when necessary, as a significant benefit is allowing them to focus strictly on HR without being pulled into side jobs and projects within the office.

Outsourcing your HR employee or team will be cost effective for any sized business. By taking HR duties out of the office, you’re reducing your costs and risks involved. Be sure that you’re making the most of these services with goal setting, communication, and team work.

About the Author: Jessica Sanders is an avid small business writer touching on topics that range from social media to business management. She is a professional blogger and web content writer for ResourceNation.com.