HR is a necessity when you have employees. And what could be better than taking a set of duties – which although a necessity, are not a core competence – off your plate?
You entered into business to build a lasting legacy, deliver great products and services, and generate revenue doing what you do best. You seem to get sidetracked by concerns about not attracting enough of the best and brightest who can execute your vision or struggling to retain and engage your team to drive better performance. You get frustrated by managing the risk of employing and terminating people and worrying about how to comply with a litany of government regulations. Even the seemingly simple administrative tasks like processing payroll twice a month, negotiating benefits with insurance carriers or compensation seems to take up too much management attention. So why NOT outsource HR?
It’s tempting to keep the status quo and continue running HR as an in-house function, cobbling together multiple vendors. What are the consequences for doing so?
Walk yourself through the decision process for managing HR—in-house, multi-vendor, or outsource.
The ROI of HR outsourcing is specific to each company. But here’s an example of the potential top and bottom line results.