Human resources have become a critical role in any business. It used to be simple such as hiring, payroll, tax filing and keeping the company health in check. However, as a company grows, the more things the HR personnel have to do in just limited hours a day. The various functions of the HR department have become too complex not to mention the changing regulation from the government.
Which HR Functions Can You Outsource?
Payroll remains as the most popular HR function for outsourcing. The outsource payroll services usually include taxes, payroll calculation, direct deposit and producing and delivering checks. By outsourcing the payroll, you can avoid incurring tax penalties. Add to that, you can ensure that your payroll will always be on time.
Companies usually outsource their healthcare, pension, and retirement plans. There are outsourcing companies who specialize in handling program enrollment and track benefit history and eligibility. Employers may turn to a benefits service provider to help them make certain administrative processes faster and give their employees attractive package offers.
RPO or the recruitment process outsourcing can handle talent searches, applicant tracking, background checks, interviewing, screening, and compensation analysis. These can all be done on a project basis. This speeds up searches for candidates with a particular set of skills that you are looking for.
You can even broaden the talent pool to increase diversity. This task is usually used by large firms that need to hire a large number of employees.
No business wants to run into labor law violations. However, the bigger a company grows, the more it is at risk of getting into the radar of state labor laws and Internal Revenue Department since you are handling more employees.
When you outsource compliance issues, you can make sure that you are following what is mandated by the law. You want ads, job descriptions, grievance procedures, benefits program compliance, and the promotions processes will be reviewed to keep it in check and make your compliance squeaky clean.