Companies are saving money by outsourcing human resources
There is a growing trend in which companies are outsourcing their human resources staff. The U.S. Bureau of Labor Statistics suggests this trend of businesses hiring external HR professional services instead of keeping a team on staff will continue. The firms can provide employee recruiting, payroll, insurance benefits and 401 (k) plans.
Among those companies that have already outsourced HR, the Society of Human Resource Management says 26 percent said they made the decision to cut costs.
"We have seen a rise in small and medium-sized companies asking how we can streamline their human resource expenses," said Kristen Harisay, president of human resources management service firm ProHR. "What interests them is getting the expertise of an entire firm of HR professionals for the cost of one internal manager."
This can be particularly helpful for small businesses that don't have the cash flow to hire a full-time HR staff, but still want to offer their employees the benefits or professional services. Moreover, it can offset employers' liability for compliance with the Fair Labor Standards Act (FLSA). Owners who don't know the state and federal labor laws and don't have the time to learn them can hire experts to manage payroll policies and ensure they are not in violation of any FLSA provisions.
Among those companies that have already outsourced HR, the Society of Human Resource Management says 26 percent said they made the decision to cut costs.
"We have seen a rise in small and medium-sized companies asking how we can streamline their human resource expenses," said Kristen Harisay, president of human resources management service firm ProHR. "What interests them is getting the expertise of an entire firm of HR professionals for the cost of one internal manager."
This can be particularly helpful for small businesses that don't have the cash flow to hire a full-time HR staff, but still want to offer their employees the benefits or professional services. Moreover, it can offset employers' liability for compliance with the Fair Labor Standards Act (FLSA). Owners who don't know the state and federal labor laws and don't have the time to learn them can hire experts to manage payroll policies and ensure they are not in violation of any FLSA provisions.
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