The Benefits of Outsourcing HRM
The Benefits of Outsourcing HRM

The Benefits of Outsourcing HRM

As your business grows, it’s probably not going to be feasible to have just one or two people running payroll and HR management (HRM) for the entire company. The need for offloading these functions eventually becomes a business necessity. For many companies, the various functions and compliance challenges related to the HR department become far too complex to maintain in-house and fall under this umbrella.

HR teams manage multiple functions

So, it’s not always obvious which ones can be effectively outsourced. A good first step is to define the role you want HR to play in your company as well as how you want your systems to operate (Software as a Service [SaaS] is one option). We’ve compiled a list of six areas where an outsourced HCM provider can be beneficial for midsize companies.

6 ways an outsourced HRM provider can help

  1. Organizational Cost Savings
  2. An HCM solution can save you money. Sure, it’s not free, but think about all of those incremental tasks your HR teams is responsible for. Those day-to-day manual tasks are actually costing you money, especially when you consider that those employees could be better off spending their time focused on talent strategies, training and development, and recruiting the best and the brightest.

  3. Human Resources Expertise
  4. If Brenda in bookkeeping is also in charge of HR functions, you could be missing out on a lot of the expertise HR outsourcing companies offer. Things like an all-in-one benefits open enrollment solution, recruitment management tools, and important data and reporting that can help your company determine when, where and how to hire. And that brings us to…

  5. Compliance and Risk Management
  6. There is no way possible that Brenda in bookkeeping can keep up with the myriad changes to employment law; it’s just not realistic, nor should it be expected. And that could get your company in deep trouble if a law or deadline is overlooked or missed. Fines and penalties for non-compliance can absolutely devastate a business, so it’s important to have the expertise of a team that’s solely dedicated to monitoring these changes daily.

  7. Efficiency and Time Savings
  8. An HR team is responsible for a huge amount of employee-focused activity that involves large amounts of data. And as the number of employees grows, their data and the tasks that surround it will only become more complex and time-consuming. An HCM system is more efficient, providing data management and accurate information for timely decision making.

    Because it streamlines operational, managerial, and executive support processes, HR teams get hours of their day back by not wasting time dealing with repetitive tasks that are necessary to managing the admin side of HR.

  9. Fewer Data Errors
  10. Payroll and HR have long been tedious, manual processes that resulted in many headaches for both the administrators and company staff. Automation via a coordinated HCM system can help reduce this administrative effort. A single system that “talks between” HR, payroll and benefits data will eliminate error-prone, duplicate employee entries.

  11. Less Paperwork
  12. An HCM solution also helps the environment. When employees need to request time off, get copies of their pay stubs, or make changes to their W-4 forms, they can take care of it themselves without involvement of HR and with less paperwork.

Paycor Can Help

More than 30,000 medium and small businesses nationwide trust Paycor to help them engage, manage and develop their people. Paycor is known for delivering the best unified HCM platform for the SMB market, but what makes us legendary is the total client experience we provide, from responsive service and user-friendly design to expert partnership and thought leadership. Our unique combination of technology and expertise helps clients streamline every aspect of people management, so they can focus on what they know best – their business and their mission. Talk to a consultant and see why 30,000 businesses chose Paycor.


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