why companies outsource hr

When business owners call Optimum about the benefits and “pros” of human resources outsourcing, we’re ready. That’s because we see the great outcomes of outsourcing all the time and we’re happy to share how going with a PEO (professional employer organization) can do for companies.

Here’s what we tell them:

1. PEOs help you attract the best talent for your company because they help provide your employees with competitive benefits practices and training to bring skillsets to the next level.

2. PEOs do job applicant background checks and drug screening. Outsourcing this HR activity can significantly decrease business owners’ recruiting and onboarding workloads.

3. You, Mr. or Mrs. Business Owner, will save time. You’ll conserve valuable hours NOT doing HR administration, keeping compliant, and addressing any employment-related claims.

4. You can avoid the risks of HR errors and liabilities. Never worry about forgetting to turn in paperwork or make a critical compliance deadline.

5. You retain control of what you want while outsourcing the rest. You can pick and choose which HR functions to outsource so you achieve balance between cost savings and control.

6. You can achieve greater insight into employee productivity and other data. Most PEOs use a Web-based information system that allows business owners to view payroll data, sick/leave time, and other metrics right on the computer screen.

HR outsourcing is an option for businesses of all sizes, but fears persist about a loss of control or cost-effectiveness. However, when you look at the facts and apply them to your business operations, you may find that you’ll actually improve your operations by outsourcing. Sure, it’s not a one-size-fits-all solution, but many PEOs will work with you to find the plan that’s best for you and your company.