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More businesses are using an HR outsourcing company than ever before. This can be a good idea for a variety of different reasons and is something that can help any size company. It is something that not everyone thinks about in terms of outsourced business services but it is something that has become more widely available in the last few years. Outsourcing saves money Businesses have used outsourcing effectively for a long time. It was widely popular in mainframe computing, aerospace and manufacturing in the 1990’s. Since that time, many companies have discovered how cost-effective it is and used these services in a variety of different ways. Hiring full-time employees to handle human resources needs cost more than using outsourcing services. The reason for this is that employees have to be paid a salaried or hourly wage plus benefits. A two-week vacation, sick leave, a 401k or other pension program, and other perks are just a few of the costs associated with hiring someone that comes on site. There are other costs that are not as apparent such as a desk and office space, higher utility bills, phones, computers and software. No hidden costs Having full-time employees also costs businesses money that they do not always immediately realize. While human resources are a specialty, there is a need to acclimate new employees and train them. An outsource solution provides the product without the human element. There are no personality conflicts or additional training to provide down the line to employees. The outsource company makes sure that its employees stay current on laws and techniques so business owners don’t have to. Other ways that employees can cost employers are not always obvious. Workers compensation premiums, jury duty and extended sick leave all cost a company dollars and cents as well as lost productivity. An outsourced service has none of these issues. Outsourced HR is the great equalizer Companies that provide these services stay up to date on all human resource issues. This means that small companies have access to the same services that large companies have. There is no need for a small business owner to try to manage his or her HR department or to hire an extra body to handle it. This also relieves the owner of trying to stay informed on all the changes that can come along in the human resource world. This can go a long way in helping the owner to stay protected legally. For more information about an HR outsourcing company, please visit our website.
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