THE BENEFITS OF OUTSOURCING
Why Outsourcing Works for Medium-Sized Businesses
According to nationally recognized authority on HR Outsourcing Ed Rankin, who wrote “Why Mid-Market HRO Makes Sense,” outsourcing human resources is beneficial to medium-sized companies.
Rankin believes that outsourcing and automating core HR, benefits management, payroll, and hiring management processes helps eliminate administrative and other burdens. This yields significant efficiency gains that spread savings across your entire business and allows employees to focus on your company’s mission and objectives. Rankin says there are a number of factors that make HR outsourcing critical for medium-sized companies:
- The economics make sense. Through HR outsourcing, organizations can achieve a 15 to 20% reduction in operating expenses.
- The company’s business requirements, processes, and needs are complex. Oftentimes, mid-market companies have needs that are equivalent to those faced by larger companies. The burden of balancing these needs is great and automation serves to simplify business processes.
- In most cases, competition is fierce. Mid-market companies are often in competition with larger companies that have more sophisticated systems and the resources to hire top-notch employees. Effective outsourcing and automation can help level the playing field.
- Compliance and regulatory burdens are increasing and growing in complexity. Sarbanes-Oxley and other regulations are a more significant burden for mid-market companies than their larger competitors. By shifting the burdens of compliance to a trusted outsourced provider, companies can help protect their interests and limit financial and legal exposure.
- Companies are typically focused on rapid growth and revenue generation. As a result, they have neither the time nor the resources to focus on back-office issues and administrative HR functions.
