Human Resource Outsourcing FAQ

Are bigger companies the only ones who outsource for human resource?

No, it does not matter if you have five employees or five thousand. Outsourcing gives any size company the benefit of getting help with business functions. HR is a very vital element of any business; so, if a company does not currently have the resources to commit to that area, it is a wise decision to seek help.

What does 'regulatory compliance' mean?

An HR provider is responsible in making sure that the business in completely running in compliance with all federal and state laws. This entails audits, reporting tax filings, corporate regulations, developing documentation, etc. Regulatory compliance denotes keeping a business aligned with all regulations.

What does payroll involve?

Payroll is responsible for paycheck processing, tax filings, direct deposit, wage garnishments, and year-end tax forms.

Can my HR help with recruiting?

HR can help with posting jobs, tracking and testing applicants, and running background checks. It is not uncommon for HR to deal with hiring, firing, reviewing compensation packages, and aiding in on-going employee training.

Is it more costly to outsource?

Most likely, outsourcing will cost considerably less. Full-time, in-house HR employees could cost close to $60,000 to $100,000 a year, whereas outsourcing may be about $20 per employee depending on the number of services needed.

Are there different HR specialists?

Yes, there are generally three levels of HR: administrators, generalists, and executives. An administrator will file paperwork, organize benefits, and make sure the company is compliant in regards to all regulations. A generalist handles hiring, firing, analyzing benefits, and compensation reviews. Executives consult with management, discuss business strategies, develop growth plans, and overall facilitate the growth of the company.

How do I find HR to outsource?

It is recommended to talk with others of a similar industry and find out if they have worked with an HR firm; and, there are many HR firms to be found on the Web as well. Consider posing the following questions to another similar business or to the HR firm in question:

- How long will it take to get started?
- How will administrative tasks be aided?
- How will the cost effectiveness be realized?
- What will the protocol be in making decisions?
- What will be the overall benefits for my company?