Keeping employees paid, protected and engaged is more than a full time job. When organizations take on this daunting task alone, doing it all can begin to feel like doing too much. This is when an HR partner that offers streamlined HR services can potentially become the next wise investment that an organization makes. A good HR partner is one that can save an organization both time and money, allowing for future investments in the organization’s growth.

As a key decision maker, it’s difficult to decide whether it would be beneficial for your organization’s HR functions to be outsourced before having a full understanding of all the functions that fall under the very large HR umbrella. How Human Resources is defined within an organization, especially new and small businesses, is often incomplete and leaves the organization open to risks that they are unprepared to address.

Human resources (HR) is the division of a business that is charged with finding, screening, recruiting prospective employees; as well as training employees, administering employee-benefit programs, monitoring employee performance, creating and maintaining company good culture, developing, promoting, and enforcing personnel policies, organizational development and maintaining compliance, providing guidance for disciplinary issues and work-place injuries and accidents.

Too often, key decision makers find themselves unaware of the importance of one function or another and don’t realize how unprepared they are until they are faced with an employee-related challenge they’ve never faced before. At that point, they have little choice but to make reactive decisions that are typically a bandaid and not a strategic and comprehensive solution.

This is why organizations should take the time to evaluate the benefits of outsourcing their HR functions. Because of the dynamic nature of human resources, this kind of evaluation shouldn’t just happen once, but on an annual basis. As the organization changes shape and size, its needs will also change. So, what might have been the right decision a year ago may not be the right decision now.

Of course, there are some HR functions that must remain within the organization. It’s never a good idea to rely on a third-party to create and maintain the organization’s culture. However, having a strong HR partner that addresses many of the organization’s HR needs can make it easier for the organization to have a better and stronger workplace culture.

Disciplinary issues are another function that are better handled within the organization. However, it is always smart to check in with your HR partner when deciding on disciplinary actions, as there are a number of details that can be easily overlooked if you don’t have the proper HR experience.

On the other hand, there are HR functions that can be very easily and very effectively outsourced including: the administration of employee-benefit programs, assistance and guidance on the monitoring of employee performance, development, promotion, and enforcement of personnel policies organizational development, compliance and guidance on disciplinary issues and work-place injuries and accidents

The most compelling reason to consider outsourcing HR Functions is that no one can be an expert at everything. Key decision makers are experts in their fields and on their organization. HR professionals are experts in the science of human resources. Ultimately, it will be far more expensive for an organization to pay for the cost of an uninformed HR decision than it will be to hire an HR partner. Understanding the existing employment laws and regulations is essential when deciding how to handle employee issues. Making decisions without being informed or without an HR partner can put the organization at risk. Protect the company, save the time, energy and money. Trust the experts.

Avoiding a costly mistake is not the only way that hiring an HR partner can save an organization money. When evaluating whether or not outsourcing is the right decision, an organization should look at what they’re currently spending on HR staff and compare it to the cost of an HR partner. Organizations can find themselves paying more for one HR professional or a team that doesn’t quite meet all of its needs, compared to an HR partner whose services and fees can be customized to fit the specific needs of that organization. Outsourcing HR needs can offer dramatic cost savings, especially in startups and small to medium sized businesses. The decision to outsource ensures that the organization has the right sized solution for its needs.

Organizations can also find substantial savings by working with an HR partner to price and provide employee benefits. This is especially true for smaller businesses where HR partners are in a position to negotiate far more competitive pricing for higher quality plans. Allowing smaller organizations to offer employee benefit packages that are competitive with those at larger companies.

Organizations can streamline their recruiting, hiring and onboarding processes with the help of an HR partner, allowing for both time and cost efficiency, as well as providing a consistent and reliable experience for all prospective employees and new employees. An HR partner will help the organization create the right experience from the beginning of the recruiting process through the employee/employee relationship. Not only does this help towards the organization’s internal culture but also protects its public reputation.

Choosing the right HR partner is key. There are a number of important factors to consider when making this decision. Not all HR partners are created equally. When evaluating options an organization should make sure that the HR partner that they choose has a strong reputation with clients that are willing to provide a reference. Always make sure to double or triple bid. An organization shouldn’t sign with the first HR partner they meet. Instead, they should meet with multiple and compare the packages presented. The best option may not be the least expensive option. When looking at a side-by-side comparison of all packages, choose the option that answers the needs of the organization, at a price that matches the value of the services offered and reflects the flexibility necessary to grow with the organization as it grows.

Wage Solutions, a subsidiary of Vertex Resource Group, is a premier human resources firm helping employers manage their labor force nationwide.  Call Wage Solutions at 630.444.1886.