A big question that HR personnel have to grapple with is one that revolves around cost and profit centricity. While HR, as a function, is crucial to the organization, their contributions often go unnoticed. This could be in part due to a number of reasons; needless to say, employee productivity and satisfactions are necessary elements for org-wide success.
A study by McKinsey & Company on Elements of HR Success evaluated over 85 companies and found laxities in basic HR responses to pertinent employee problems. These laxities emanated from the lack of incentive for management to invest in human capital. While this may be true (especially among startups), the absence of a strong HR function can lead to more problems than one.
One practical and cost-effective solution to this problem is working with an HR partner. In this process, HR responsibilities are handed over to a vendor that specializes in core HR functions such as payroll management and new hire tracking or even benefits administration, our specialty at Benefits Redesigned LLC. While some management personnel may disagree with the idea, studies have shown the benefits of working side-by-side with an HR partner.
In this blog, we will discuss the advantages of hiring an HR partner.
Allows You to Focus on Core Activities
HR support allows businesses to concentrate on their core activities. These include product development, marketing, and customer service. This focus leads to better overall performance. It also helps keep organizations focused on achieving their business goals.
When HR tasks are managed externally, internal teams can prioritize strategic projects. This results in more innovation and growth for personnel. It also improves employee satisfaction, as the pain of dealing with everyday issues goes out of the equation.
Reduces Unnecessary Costs
HR partners offer the strategic cost benefit of cutting down overhead costs. Unfortunately, in-house HR personnel do come with high associated costs. Hiring an HR partner eradicates these expenses.
Businesses have the ability to steer clear of costs associated with wages, perks, and workspace. They pay only for the services that are necessary for them. This can result in considerable savings.
Working with an HR partner also reduces the costs of HR software and technology. External providers often use their own systems. This eliminates the need for businesses to invest in costly tools and systems.
You will Gain Access to Expertise
Hiring HR support externally provides businesses with skilled professionals. These specialists possess expertise in different HR fields like hiring, adherence, and staff interactions.
External HR providers stay updated on industry trends and regulations. They bring best practices to the business. This ensures effective HR management.
Having access to expertise can also improve decision-making. Experienced professionals can provide valuable insights. This can help in developing better HR strategies.
Better Compliance
HR support helps in maintaining compliance with regulations. HR professionals are well-versed in labor laws and regulations. They ensure that the company adheres to all legal requirements.
Compliance is critical to avoid legal issues. It helps in preventing fines and lawsuits. This can save the business from costly legal battles.
HR experts keep track of changes in regulations. They update policies and procedures accordingly. This proactive approach ensures continuous compliance.
Improved compliance also enhances the company’s reputation. It shows that the business values legal and ethical standards.
Better Risk Management
HR support can improve risk management. HR professionals identify and mitigate risks related to employment. This includes issues like workplace safety and employee disputes.
They develop policies and procedures to handle potential risks. This reduces the likelihood of incidents. It also ensures that the company is prepared for any challenges.
Effective risk management can lead to a safer work environment. It can also prevent financial losses. This is crucial for the stability and growth of the business.
Benefits Redesigned as your benefits administrator means we do the heavy-lifting for all things benefits. Employees have a benefits question? They call us. Payroll deductions need audited? We do that for you. Carrier billing confusion and time consuming? We can make it easy.
At Benefits Redesigned, we even offer a full HRIS system (human resources information system) to track and manage employees – and not just employee benefits but onboarding, exiting, reporting, etc.
Enhances Employee Experience
HR support can enhance the employee experience. External providers often offer efficient and responsive HR services. This can lead to higher employee satisfaction.
HR professionals handle employee inquiries and issues promptly. This ensures that employees feel valued and supported. It can also improve morale and retention.
HR vendors can also provide access to better HR tools and resources. These can include low-cost employee benefits and employee training programs. This adds value to the employee experience.
An enhanced employee experience can lead to a more engaged workforce. This drives productivity and contributes to business success.
Scalability
An HR partner offers scalability for growing businesses. Companies can adjust the level of HR services as needed. This flexibility is beneficial during periods of growth or change.
External HR providers can scale their services to match the company’s needs. This ensures that HR functions are always adequately managed. It also prevents overburdening internal staff.
Scalability allows businesses to adapt to market demands. It supports expansion and helps in managing a larger workforce.
Final Words
Taking the services of an HR partner is a strategic decision. It helps businesses save time and costs. By focusing on core activities, reducing expenses, and accessing expertise, companies can achieve better results. Enhanced compliance, risk management, employee experience, and scalability are additional benefits. These factors contribute to overall business success.
At Benefits Redesigned, our expert team works 24x7 to provide top-notch HR support services. We are proud to be known for our services in multiple fields, such as HR support, benefits administration, employee benefits, etc. Check out our wide range of services and let us help you grow. As a leading Agency since 2003, we are committed to finding the best benefit options for you.
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