Outsourcing HR can reduce your admin time and allow you to focus on growing your business.
Administrative responsibilities can hurt any company, by taking up precious time. For smaller businesses, managing human resources can be a huge a problem. When you run a small business and have limited time, the last thing you want to do is divert your attention from your core business – which is your main focus. Outsourcing human resources allows you to reduce your admin workload and free up time so you can focus on your business.
If you haven’t given thought to HR outsourcing, the range of tasks you can offload will be surprising. An HR outsourcing company can manage a lot of your human resources functions which you might otherwise give to multiple providers, such as payroll, benefit plan management, recruiting, training, and more. With one provider to take responsibility for a range of hr functions, you’ll spend less time on administration, and less time managing vendor relationships too.
It’s important you find an outsourcing company that will work with you to provide services which are easy to us. The real value is realized when employees internally, are brought into the service and able to use the resources.
Managing human resources efficiently and intelligently is important to your business success. It’s vital to find a service provider who can offer the right mix of services. If you want a bundled package, or want to pick and choose the services you need, there are many options available to you.
The marketplace is truly crowded with companies to choose from. Below are some of the best providers. We’ll discuss the pros and cons of some of these providers.
HR Outsourcing Pricing
For most small business owners, price is a huge issue. HR outsourcing services are customized based on the needs of the client. It’s critical that you realize outsourcing costs can vary from $45 to $1500 per month, based on the # of employees and the services required. Charges range from 4% to 8% of each employee’s pretax monthly salary. It means the total cost will vary based on the size of the salary. In some instances, services can be outsourced for a flat monthly fee.
Best HR Outsourcing for Small Businesses
Paychex Flex has a number of services for HR outsourcing, like payroll, taxes, benefits, recruiting, training and more. There is no long term contract. Paychex also offers on-site assistance programs, which puts the HR professionals in the office when clients need help. Many outsourcers also offer services like handbooks for employees, and guidelines – but often they are boilerplate. Paychex will also create a set of customized guidelines to meet the needs of the client. Their website also has educational resources on a lot of HR topics. One downside is that Paychex doesn’t offer live chat. They also have special programs for businesses with fewer than 50 employees.
Best HR Outsourcing Solution for Very Small Businesses
Oasis outsourcing is fantastic. There is no long term contract. For super small companies they are great and can handle the entire HR process. The company works with customers to create strategies and strengthen areas where they see a customer has a weakness.They also offer online account management and mobile options which makes it easier for customers to handle their HR needs online.
- They offer training and performance reviews, in addition to other employee management assistance
- They have great online education resources
- They offer a health care reform center to keep users informed
- There is no live cheat feature
Best HR Outsourcing for Customers Who Want a Custom Solution
Insperity offers virtually every feature you can ask for. They will even do background checks, drug testing, during the recruitment process. They handle all aspects of HR administration, recruitment, payroll, benefit administration, reg compliance, and risk management. The company is great for small business owners who want to pick and choose which services they want. It doesn’t require clients to purchase bundled services. Employees can easily access all of their pay and benefit information on the website, in addition to a mobile app which allows people to view the information. The mobile app also lets you track time, attendance, paid time off, and more. Customer support is good, and the company has a live chat option as well as a great blog on HR topics. Their model is based on a % of employee salary, and the total cost is a function of the number of employees and services chosen.
Best HR outsourcing for industry specific needs
TriNet has a lot of services which you’d expect from an HR outsourcing firm. It stands out by organizing its services along industry lines. For customers in healthcare, financial, retail, non-profit, or other industries, TriNet offers specific knowledge. They have strong reporting capabilities, and can connect to QuickBooks as well as HR dashboards. Their live chat function is also great.
Other great HR outsourcing solutions
ADP Total Source is a great behemoth in the payroll industry. It’s a great choice for companies with more than 500 employees. They offer a full range of outsourcing capabilities. Their services cover all aspects of an employee life cycle, and they are one of the few HR outsourcing companies that conduct first round interviews. Their customer service is considered AMAZING.
CPEhr also has as range of services, where customers can pick and choose rather than subscribing to a bundled plan. They have immense amounts of online resources, and offer 1:1 consultations with HR specialists.
Accenture HR is a full service HR provider with a range of services, but has been noted for poor customer service.
AonHewitt offers most of the services you need for HR outsourcing, with the exception of recruitment, job posting, and descriptions. Their performance management options are considered amazing. The company is targeting LARGE corporate clients. They don’t have a mobile app.
Checkpoint HR is also a popular choice among mid-sized companies. Their customers have glowing reviews. They have a lot of services, including lifecycle recruiting, and they have integration of payroll/benefits/administration.