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What is Outsourced HR?

June 1, 2023

Courtesy of SBAM-approved partner AHOLA HR Solutions | Payroll

Outsourced HR services are designed to streamline functions, reduce expenses and help meet your business operational goals. You may hire a third party to oversee some or all of your HR functions, including talent acquisition, HR compliance management, and organizational development and HR strategy.

Outsourcing is a partnership between your company and the outsourcing HR firm — sharing can relieve some of your burdens in staying compliant and reducing your risks. You have the flexibility to outsource one or two tasks if that’s all you need.

HR tasks that can be outsourced include:

  • Attracting and developing talent as well as onboarding and retention.
  • Keeping up with federal, state and local legislative and regulatory compliance for changing labor and employment laws.
  • Creating company policies for employee relations tasks.
  • Develop a customized employee handbook — company policies, procedures, benefits and training — so employees know what’s expected of them.
  • Guidance on Family and Medical Leave Act-related issues, making sure leave is administered properly and in compliance with applicable rules and regulations.
  • Offering guidance on employee relations issues for your workforce.
How do you know if it’s right for you?

Some scenarios that may lead to outsourcing HR include:

  • You want access to technology that is too expensive or complex to run on your own.
  • You feel that you’re spending a disproportionate amount of time on HR tasks.
  • You have liability exposure.
  • Your HR functions are spread among employees in several departments.
  • Your firm isn’t large enough to have an in-house HR team and your staff is having trouble properly balancing hiring tasks and employee management.

How does outsourcing reduce costs?

  • Frees up time and resources.
  • Reduces HR expenses.
  • Reduces turnover.
  • Helps generate higher revenue growth.

An outsourcer can review your talent acquisition strategy, offer a streamlined and integrated applicant tracking system, and assist in developing targeted job descriptions. Finding the right partner can help identify areas of concern and help you take the steps needed to stay on track — missteps can cost you a lot in fines and lawsuits.

Looking to get started today? Request more information on Ahola’s HR Consulting Services.

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