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5 Ways Small Businesses Benefit from Outsourcing HR | AugmentHR
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It’s a mistake to assume that only large companies need a trusted human resources team. These professionals don’t just hire and fire—they also work to maintain high morale and keep track of employee files, vacation days, and benefits. Teams of any size benefit from knowing that their business is being organized in the most efficient and streamlined way.

With this said, many traditional HR departments are “on the move.” More and more companies are finding that in-house HR departments are more capable of hurting an organization than helping it. In turn, many companies are outsourcing HR providers to complete tasks more effectively. Here are five ways small businesses can benefit.

1. MONEY SAVED MEANS MORE CAN BE INVESTED ELSEWHERE

In-house HR teams can become incredibly expensive to operate and many small businesses could be better off putting this money towards other departments such as marketing and sales. Outsourced HR providers understand small business needs and often work on an as-needed basis to provide competitive rates that companies love. Whether you need minimal services or a ton of HR support, there’s always a provider who is happy to serve your needs.

2. NO ONE HAS TO PLAY HR WHILE WORKING THEIR FULL-TIME JOB

Believe it or not, some businesses that lack a proper HR team think it’s appropriate to assign human resources tasks to an already existing employee with a different job description. Although this is technically illegal, this practice is especially common in the startup world and it leads to burnout and low morale—two major threats to any small business. By outsourcing HR, startups and small companies can keep costs low while ensuring that no one has any extra work on their plate.

3. RECRUITMENT BECOMES A BREEZE

In order for small businesses to keep growing, they need to be able to hire fresh and upcoming talent. Recruiting is no easy task, but professional HR providers know how to do the job with ease. They can usually handle everything including contract recruitment, job postings, preliminary interviews, candidate screening, talent mapping, and even background checks. Once candidates have been hired, they then move on to staff training.

4. PAYROLL STAYS ORGANIZED WHILE THE COMPANY GROWS

Small businesses know how important it is to keep their employees happy and financially secure in the long-term. It can therefore be helpful to outsource an HR team that can keep your payroll system coordinated and your business on track to reach future financial goals. Outsourced payroll services are always completed with maximum efficiency in order to meet company deadlines. Focused professionals also work with care to prevent mistakes in employee paystubs. When payroll is disorganized, workers become frustrated and business suffers—luckily, outsourcing solves all that.

5. VACATION AND SICK DAYS ARE MONITORED

Even small companies need to grant their workers time off for vacation or illness. If you’re company isn’t prepared for holidays and sudden sickness, both management and employees will bear the burden of having to make up for the lack of manpower and loss in profits. HR professionals are trained to manage systems that keep track of vacation and sick days, preventing future disasters and keeping everyone stress-free. They also handle necessary issues like disability and workplace injuries. What else could you ask for?

Contact us today to take a peek at our amazing testimonials and learn more about how your small business can benefit from outsourcing HR services.

Felicia Smith

Felicia is the manager of human capital solutions at AugmentHR. With over six years of recruitment experience coupled with multi-faceted HR roles, Felicia is an expert in matching people with the right role and environment. She has worked in many different industries, including investment banking, HR consulting firms, medical, and commercial. Understanding people is one of her strengths, and she has recruited at every level, from directors, project managers, and engineers to operators and general labourers. Her ability to network and develop relationships has been a key tool to her success. With approximately two years of experience managing people and creating a positive work environment, Felicia’s diverse skill set makes her a well-rounded individual. Her business education and background help her identify different business needs and human capital solutions.

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