The human resource department is an essential part of any business, but when HR personnel don’t have the time, space or resources to tackle every aspect of their department, your entire business can suffer. To create our lineup of human resource outsourcing companies, we looked for those that offer comprehensive services and partial services so you can find the best fit for your business.
The companies in our buying guide all offer hands-on HR outsourcing to help your company handle any sort of HR task, from the simplest to the incredibly complex. HR outsourcing services allow your business to outsource a variety of tasks, including benefit administration, training, recruiting, hiring and payroll. These HR solutions are ideal for companies of all sizes that don’t have the resources to hire or expand an in-house HR staff, or if the current staff is buried in work and needs options for decreasing their workload.
Best for Hiring & Recruiting
Finding the best employee for the job is a critical component of any business’ success. Having the assistance of a well-trained HR representative while hiring and recruiting individuals for your company can be the difference between finding the perfect fit and hiring an employee who doesn’t work out. Insperity offers comprehensive background and drug screening packages and pre-employment reports to help you during your company’s hiring and recruiting process.
Insperity is an HR solution with plenty to offer. It can assist you with the management of all kinds of employee benefits, and even employee performance reviews and drug testing. This company provides assistance for many complex and time-consuming HR tasks and can handle many day-to-day responsibilities.
Best for Payroll Management
Payroll is more than just the amount your staff gets each paycheck. It has functions, some of which can be complicated to complete. Your payroll must be compliant with health care regulations and other government taxes. If your payroll is done incorrectly, it could result in problems for your business and delay payment to your workers. ADP offers payroll services that help you streamline your payroll process, while ensuring the information is correct and compliant.
Best for Employee Development
Employee training is an important tool for keeping your workforce and company competitive. HR outsourcing companies can create custom plans for your company’s needs to help you train and develop the best employees. They can also provide performance management plans to help workers who have fallen off track to catch up. G&A Partners is the best example of a service that offers training and performance-boosting guidance.
G&A Partners can help manage your company's HR responsibilities. This human resource benefits outsourcing company provides a variety of HR services. It has the tools and features to help you manage your employees effectively, and the staff has the knowledge to answer any of your questions. There are some areas where this service is lacking, but it still provides excellent features to meet the needs of your employees.
Best for Small Businesses
Small businesses face unique challenges; most fail within the first five years of operation. HR outsourcing can be an important tool for small businesses. It can help them recruit the best talent, while also freeing up existing company resources so that employees can focus specifically on running and growing the company. HR outsourcing is also a good option since small businesses often do not have the funds to hire an HR staff. Paychex is an HR outsourcing company that offers services specifically designed for businesses with 50 employees or fewer.
If you need assistance with your human resource tasks, Paychex has the services and tools to assist you. This HR outsourcing company offers assistance online, on-site and through outsourcing. It can assist you with most of your human resource tasks, including payroll, taxes, benefits, recruiting and training.
Why Does My Company Need HR Services?
It is true that many companies forgo hiring HR staff in their initial years. However, this is a risky decision. When you do not have an HR staff, your company is more liable for lawsuits. Your employees do not have a neutral party to discuss issues with, nor is there a specialist ensuring that all your hiring paperwork is appropriately completed.
While it might not seem necessary at first to invest the time and money into hiring HR services, realistically you can't afford not to. HR provides vital support for your staff through conflict resolution and training, helps with budget management, and ensures that your company is compliant with employment laws and regulations.
Which Is Right for Me: Full-Service or Partial HR Outsourcing?
When choosing to outsource your HR services, it is important to know exactly what your business needs. Some companies choose to use solely outsourced HR services, while for some companies partial outsourcing is the better option. The needs of your specific company will determine which outsourcing resources you need and the service that you select. However, here a few things to consider for each option.
Full-Service HR Outsourcing
Full-service human resource outsourcing is a good option if you own a small company and cannot yet afford to hire HR personnel. It is also a good option if you have staff in different parts of the world and need HR staff to work with remote employees. By outsourcing these services, a company ensures that it remains in compliance while working with employees and can provide a healthy working environment.
When companies skimp on HR, they put themselves and their employees at risk. A full-service HR company can help you appropriately manage day-to-day HR tasks like reporting misconduct, ensuring work safety compliance and coordinating insurance benefits. They can also work closely with your payroll team to handle compensation. In addition to day-to-day tasks, you can request services like recruiting and employee training.
If you have no HR or an inexperienced HR staff in your company, full-service HR outsourcing is probably your best option. It provides the resources of a full HR staff to oversee your company’s needs without the expense of hiring a whole team.
Partial HR Outsourcing
Partial outsourcing is a good choice for companies that have HR staff but need extra help. For example, maybe you have an HR representative to handle hiring and ensure that employment paperwork is correctly filed. However, HR is more than compliance and staff support. It can be an important resource for employee training and development. If you do not have the resources or desire to hire a full-time training specialist, you can outsource this service.
The most common trainings that HR outsourcing services provide include software and processes training, though other options are available. The best HR outsourcing service will work with you one-on-one to determine the training that's best for your company’s employees.
Other common partial outsourcing services include payroll outsourcing, employee screenings and background checks, employee recruitment, and immigration compliance. If you have a small HR staff that is burdened by workload or inexperienced in certain functions, like immigration paperwork, then partial outsourcing is the best solution for your company’s HR needs.
HR Outsourcing vs. Automation Software
When determining the best HR option for you, you may wonder if it is better to outsource specific services or to automate them. Depending on your business and its needs, the answer mostly likely falls somewhere in the middle. A little bit of each is a good way to streamline your HR services and maximize productivity.
HR outsourcing services provide administrative HR tasks and other HR functions on behalf of your company. Though representatives work closely with you to meet your company’s needs, you are handing the reins of certain services over to an outside organization. One benefit of this is that it completely frees up your time so that you can focus on growing your business. However, when you outsource, you have less involvement and control over day-to-day operations, which could lead to a disconnect in the company’s culture.
HR automation services, available as software or SaaS, give you the tools to maintain your HR files securely. These services help you accurately complete hiring and payroll forms that are compliant with employment rules and regulations.
In addition to HR automation services, other services can help your HR team perform at its best. Employee scheduling software and time card software help HR staff easily track and manage employee schedules and accruals. If your employees frequently receive tips, you may also want to look into POS systems, which integrate with payroll software to make it easier to track and claim employee tips in your business taxes.
Though some automation and HR outsourcing services would have you believe that you must select one over the other, a combination of the two might be the best answer for your business. For example, if you have a small designated HR team in your company, HR automation software can help them handle a large volume of employee paperwork without being overwhelmed. At the same time, you can hire an outsourcing service to run a hiring and recruitment campaign or provide intermittent employee trainings so you do not have to overburden in-house HR representatives.
There is no one right way to run your company’s HR. If you want to maintain control of certain HR functions, like payroll, but do not want to focus on other areas, like recruitment, then a combination of automation and outsourcing is a good choice.
For some companies, automation services will be all they need, while others may rely solely on outsourcing. However, for many companies, a combination of both works well for meeting HR needs.
Sensitive Data & Legal Considerations
HR is responsible for maintaining employee confidentiality in compensation and personal matters, and for ensuring your company’s compliance with federal regulations surrounding health care, 401(k) plans and the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).
Another important function of HR is to ensure your company follows legal processes when hiring, especially when hiring noncitizens. Immigration compliance at both the state and federal level is a complicated process that your HR staff may not have expertise in. If your company frequently hires immigrants, it is important to find an HR outsourcing service with experience in immigration services. This helps to protect your company against unintended violations of immigration law, which can be extremely costly.
The HR outsourcing service that your company partners with should give you the option to select a full-service package or pick and choose which services are best for your business right now. It should also have expertise in employment compliance to protect your company against penalties or lawsuits. Each service in this buying guide offers comprehensive packages to assist your company with its HR needs so that you can focus on other tasks pertinent to your business’ success and growth.