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Outsourcing HR – The Advantages

Posted on: September 9th, 2015

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Outsourcing HR has many advantages

If you are a small business, your human resources person might actually be the office manager, an executive assistant or a part-time payroll person. They are responsible for a lot of important elements of your business, such as hiring, onboarding paperwork, employee payroll and employee benefits, just for starters. These tasks are not just complex, but at times they can become too burdensome to effectively handle. Many small businesses are considering outsourcing HR, in total or in part, as this list of tasks grows significantly longer. One thing is certain – one person can no longer keep up with all the legal changes, required forms and paperwork.

Outsourcing HR growing in acceptance and popularity

Outsourcing HR has been a growing trend for years, with little signs of slowing down anytime soon — and it’s not just about cost savings. A major driver of this service is compliance, which has become a serious and real concern for many businesses over the last several years. A quick scan of the headlines bears this out.

I-9 documentation
Restaurant Case

Businesses in all industries, particularly restaurants, fast food outlets, construction, retail and even services like Uber and Airbnb, are in the DOL headlights as priority targets. These businesses are generating headlines for wage and hour violations, misclassifying employees as 1099’s rather than employees, practicing hiring discrimination against protected classes and turning a blind eye on sexual harassment, among other reasons. Now, more than ever, businesses need to consider Outsourcing HR and utilizing HR experts so that they stay in compliance and avoid legal trouble.

We anticipate that the compliance burden will get even tougher when the proposed DOL overtime rules go into effect, which will increase labor costs and turn managing the workforce upside down.

Why Outsourcing HR could work for your business

Here are some of the main reasons that businesses choose to outsource HR:

  • Cost savings
  • Minimizing the risk of fines & lawsuits
  • Efficiency
  • On-going compliance monitoring
  • Strategic expertise for company improvement and growth
  • Improving accuracy of employee data, work hours, absence tracking, payroll
  • Lack of HR/Payroll experience or bandwidth in-house
  • Multi-state regulations and considerations
  • Technological advances unavailable in-house
  • Reducing turnover
  • Reducing payroll expenses
  • Increasing employee satisfaction and retention
  • DOL focus on violations (P3 initiative)

Is Outsourcing HR the right move for your business?

Whether you’re a big business or a small one, the benefits of outsourcing HR are evident.

Are you interested in learning more? We’d be happy to answer any questions you might have in an initial discussion.

Contact us

Can you afford the risk?

That’s up to you – but many businesses today are thinking “it’s too much for me to handle” and “it’s too easy to drop the ball on compliance, forms and process” by continuing to do this in-house.

About MassPay

MassPay’s ASO Services provides businesses with guidance on HR and Payroll issues, helps them set strategy for growth, creates/updates the employee handbook, reviews job descriptions, and keeps businesses in compliance with wage & hour, ACA, time off and other legislation, reducing their risk of fines, penalties & lawsuits.

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