CoAdvantage-One of the biggest advantages of outsourcing anything is time.
According to small business financial lender Fundera, small business owners work a lot of hours. Most (70%) work more than 40 hours per week, and a sizeable minority (19%) work more than 60 hours per week.
With HR and administrative tasks consuming as much as a third of a small business owner’s working time, outsourcing frees up valuable time. In fact, according to one survey, one in four business owners believe an extra hour each day would be worth over $500.
Human Resources Outsourcing (HRO) thus offers a winning advantage by unleashing the owner’s time from non-core, administrative tasks like payroll, employee relations, compliance, and other HR issues. In turn, that boosts time for core, revenue-generating activities. Even better, because HRO generally offers access to economy of scale pricing executed by subject matter experts who can complete HR-related tasks to a high level of quality in less time than business owners could themselves, the associated costs shrink overall.
Health care insurance coverage is a good example. Small businesses are often limited in their options: they can only choose between a relatively small number of insurers providing relatively less competitive plans at proportionally higher costs. By outsourcing this function, small and midsize businesses can access enterprise-grade insurance coverage with improved options at lower cost. Best of all, the owner need spend virtually no time sourcing, managing, or administering the program. The outsourcing vendor handles everything.
But one of the most impactful ways HRO helps is by reducing liability. This is especially true with Professional Employer Organizations (PEOs) like CoAdvantage. The PEO itself becomes the employer of record (without requiring the actual employer to sacrifice any control), so it assumes the related liabilities. Simultaneously, the PEO can ensure the employer stays always up to date with regulatory changes and labor law requirements without having to spend any time themselves to actually do so.
And that doesn’t even include time spent refereeing employee grievances, dealing with 401K issues, administering other benefits programs, or handling any of the rest of your HR needs. With the expert application of HR best practices, HRO can optimize your workforce and eliminate many liability risks. In fact, HRO can help in a huge variety of ways, as illustrated in the chart below. Thus, HRO enables businesses to focus their time on activities that make them money, period.
CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with HR administration, benefits, payroll, and compliance. To learn more about CoAdvantage’s ability to create a strategic HR function in your business that drives business growth potential, contact us today.