• The Versia Group

When and Why Outsource Your Human Resources Department

Many companies outsource HR for administrative tasks, payroll, and benefits to give them time to focus on running their business. When you first start your business, your priority is hiring qualified team members in your industry. Then, as the business grows, back-office operations become more important.


You may find that you need to outsource your human resources department to help coordinate interviews, send offer letters, manage benefits, and more.


Are you considering whether or not you should outsource your human resources department? Maybe it's time to look over the benefits of outsourcing.


Why Outsource Your Human Resources Department?


First, ask yourself if you need to hire staff for an internal HR department. An HR department ensures that your business is industry compliant. It also manages the payroll and takes care of onboarding new staff while maintaining a healthy workplace culture.


Although it may be challenging to figure out when and why to outsource your human resources department, it all starts with defining what role you want HR to play. Some essential tasks, such as payroll and administering benefits, are a perfect example of using an outsourced HR and payroll provider instead of hiring in-house staff.


Payroll, Taxes, and Benefits Administration


One reason to outsource your human resources department is to ensure that your business complies with federal and state payroll tax regulations. You can even find online solutions to automate direct deposits, pay hourly employees, manage paid time off, and maintain record-keeping.


Additionally, it's helpful to outsource HR to help administer health coverage, your employees 401(k), and commuter benefits, among other things. You'll likely gain access to high-quality benefits that you would otherwise be unaware of, as well.


Human Resources and Compliance


While you may not be well-versed in payroll taxes, there are numerous federal, state, and local employment-related regulations that demand organizational compliance. Suppose you decide to outsource your human resources department. In that case, they will help with workers' comp, sexual harassment prevention training, hiring compliance, and other workplace regulations and help with payroll and taxes.


Is It Time to Outsource Your Human Resources Department?


There are a few questions that you can ask yourself to determine whether or not to outsource HR. First, will there be hiring throughout the year? Is it necessary for face-to-face interaction? Do you want human resources to organize social activities and help with team building?


The answer is as follows: If your business requires face-to-face interaction from HR with employees, hire an in-house HR team member. However, if it's a matter of compliance and ensuring that payroll, benefits are streamlined and efficient, it might be best to outsource your human resources department.


Finally, consider what growth-stage your company is at, and how challenging it is to manage benefits, payroll, time off, onboarding, and run your business. It usually makes sense to outsource your human resources department if your business is small and growing.


Contact The Versia Group for more information on HR outsourcing.