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If you’ve worked for a large company, you know about perks such as flexible health and retirement plans. Your small business, though, probably doesn’t have the resources to put together a competitive benefits package on its own.
That’s where HR firms such as National PEO ( )can help. HR outsourcing gives you experts to handle payroll and administrative tasks and keep you in legal compliance. It can even help you attract top talent.
Here’s how to get the most from HR outsourcing.
1. Consider the size of your company.
If your business has eight employees or more, outsourcing HR can be cost-effective, experts and small-business owners say. “With 20 employees, it’s cheaper and more effective to outsource HR,” said Frank Sabella, the controller for International Facilities North, a business insurance aggregator. “You have access to a larger range of HR services for hiring, recruitment, terminations, and legal issues,” Sabella said.If you have fewer than eight employees but still want to remove some of the administrative headache, consider a regular payroll service, such as Pro Pay, ( which helps you with taxes and filings.
2. Offer competitive benefits.
Mike Sobolik is the finance director at Roving Planet, a 30-person network software company. The company takes advantage of its PEO’s customer base for buying power, letting it secure a more affordable and comprehensive benefits package than it could get on its own.”We have eight health care programs, 401(k) programs, Delta dental, and a vision plan. We have what you would call ‘big company’ benefits,” Sobolik said.3. Recruit top talent.
“For the cost of half an admin and fees equivalent to half a regular position, we’re getting a fully loaded HR team, and our employees are better off as well,” Sobolik said. “It’s a recruitment advantage. When you have a 30-person firm that’s venture funded and yet you can tell prospective employees you have a world-class benefits package, it helps.”
4.Give power to your employees.
If you have a multitiered management structure, give different levels of access to different employees. A regular employee can log in to check benefits, tax information, and available vacation days. A supervisor can view his or her own benefits plus those of the team, whereas a manager or administrator can see the entire company picture.5.Relieve the administrative burden.
Sabella found that outsourcing HR increased the administrative staff’s productivity. “Without it, you end up spending a lot of time on paperwork with employee files, such as hires, fires, and locating documents,” he added.Online access means your employees can find the answers to questions themselves. to solve problems,” added Sobolik. “It was clearly a value-add over and above what a straight payroll service would have given us.”
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