Small businesses are constantly striving for growth, which means that the bottom line remains a constant factor. In fact, saving money and cutting costs can prove just as challenging as developing new products or building a customer base.
One seeming paradox entrepreneurs may find themselves facing is the constant tension between ensuring all staffing gaps are filled with the sometimes harsh reality of having to operate with lower funding than is ideal to meet these needs. The good news is that, at least in some areas, there are solutions available to small-business owners to help reconcile these two seemingly disparate facts – HR outsourcing.
Don't hire more, hire smarter
It's true that you may not be an HR wizard – in fact, you may be totally clueless when it comes to issues related to benefits and recruiting. However, the prospect of budgeting for a whole other salary so you can bring a qualified HR professional to your team may leave you wringing your hands. The principal benefit of PEO companies is that they offer small businesses a solution to this conundrum by providing essential HR solutions without having to shell out the additional expense to provide for an additional salary.
As AllBusiness.com noted, full-time HR services are a requirement for any business looking to get ahead. But just because you're still experiencing the growing pains of being a startup, that doesn't mean you have to lose out on the HR front. HR outsourcing companies are a great money-saver for businesses who want to cover their bases but simply don't have the funds.
You're buying peace of mind
When you make the decision to outsource your HR services, you're making an investment in a variety of services, chief among them being peace of mind. Much of the unseen benefit of HR isn't what it provides – updated and relevant recruiting strategy and benefits administration – but what it shields you from, namely, potentially costly legal mistakes. Dedicated HR services are a key part of protecting your company against risk, and PEO companies really make their appeal known in this regard.
According to Inc. magazine, risk mitigation is actually the No. 1 benefit a PEO organization can offer a company. State and federal compliance requirements can change rapidly, especially in areas such as health care. The reality is that in-house HR departments, particularly in small businesses or startups, can have a difficult time staying on top of bureaucratic changes while also pushing for company growth. Fortunately, outsourcing HR can pass the burden of compliance onto a knowledgeable, skilled and, most importantly, dedicated team.