Is Outsourcing HR Right for Your Business?

Lots of businesses are facing a financial crunch as the margins they operate under continue to shrink. This unfortunate trend has led a lot of businesses to outsource elements of their operations to try and cut costs. One part of the business that is either outsourced or cut out entirely has been the human resources department. 

What Does the Human Resources Department Do?

HR is responsible for recruiting employees, their training and progress, and handling records. Many organizations have their HR department handling other administrative tasks, payroll, and benefits as well. These are crucial parts to running a business, so when there aren’t resources for an HR department, there is a giant hole left in an organization.

Businesses Getting Value out of Outsourcing HR

When a member of your organization doesn’t present obvious revenue generation, that position is apt to be outsourced. Many businesses are now getting immense value out of outsourced HR plans. Today’s outsourced HR platform can do about anything that an internal HR professional can do, but it will be done much less formally. 

The change isn’t just for cost savings. Studies have shown that HR departments are guilty of the following:

• Reports of toxic work environments
• Lazy and underwhelming recruiting
• A total lack of employee development
• No dedication to building a positive company culture
• A complete lack of coordination between business leaders and HR

This is why many decision makers have looked to get out from under their HR staff. Today, Human Resources-as-a-Service (HRaaS) platforms make it easy to get value out of outsourced HR.

About HRaaS

Since HR departments have very specific things they need to do, and do well, HRaaS platforms have been built around those things. They give business managers the ability to track their HR progress through a dedicated dashboard. Many more expensive options have expansive features that allow a company to integrate payroll, benefits, and more. HRaaS can help your business get a budgetable platform that can help you:

• Attract and develop talent
• Maintain regulatory compliance
• Provide benefits and payroll administration
• Provide necessary employee training platforms

At Directive, we can help your business be more successful through the use of technology. If you would like to have a conversation about any of the technology platforms that we can recommend, or talk to one of our IT experts about systems like HRaaS, give us a call today at 607.433.2200.