When most people think of outsourcing, they think of overseas call centers, where rows of people with limited English skills sit at desks and read from prepared statements on their computer screens to irate callers looking for assistance with their computers or credit card bills. Maybe they gleaned that image from the movie Slumdog Millionaire, or maybe they're drawing on one of their own frustrating experiences trying to get a billing error corrected. However, while that may be a very small subset of outsourcing, it certainly does not encompass the full range of services that you can outsource to professionals. For example, did
you know that you can outsource your human resources, freeing up your staff to focus on what your business does best?

Companies can use a Professional Employer Organization (PEO) to outsource many of their HR administrative tasks. Here are just a few reasons why a business would choose to hire a PEO for Outsourcing HR, rather than try to do it in-house:

Take the headache out of reporting new hires.

As a business grows, it needs to report new hires to the appropriate state authorities. PEOs take on the responsibility of meeting reporting requirements to the correct state regulators.

Keep up with hiring, firing, and interviewing regulations.

Reporting new hires is not the only headache that businesses face when dealing with employees. Outsourcing HR means that the PEO actually becomes a partner to the organization and keeps it abreast of new regulations that relate to employee management. For example, your state may change how you need to document terminations in order to avoid paying unemployment to a fired employee. Rather than try to keep up with that on your own, your PEO would alert you that your state now requires you to do something different than the procedures you have used in the past.

Gain access to HR consultants.

Most smaller employers may not have employee manuals and employee procedure practices in place. Yet as the company grows, you want to have reference materials so that, not only are you able to train new hires faster, you also have documented procedures in place in case you need to terminate someone. Outsourcing HR grants you access to these types of professionals that can help you put together manuals for your employees. These consultants can also help you comply with new and existing regulations, as well as advise you on recruiting strategies.

Outsourcing is really about finding ways to make a company run smoothly, and outsourcing HR takes a lot of the administrative burden away from smaller companies so that you do not need to hire a full HR department in-house. Instead, you can focus on providing your product or service and consult with professionals as needed, ensuring regulatory compliance and minimal hassle.