8 Benefits of Outsourcing Your Human Resources Management

For more than a decade, many for-profit and not-for-profit organizations have relied on us to manage their human resources needs.

Here are some of the benefits our clients have realized when outsourcing their HR function.

Save money vs. paying an HR generalist

According to recruitment advertiser Indeed, the standard rule is for organizations to staff 1.4 HR individuals for every 100 employees.

When considering that an HR generalist earns $65,000 on average per year, plus benefits, including health insurance, worker’s comp insurance, and paid time off. These costs, in addition to training time and expense, management time, office space and IT requirements, easily exceed $80,000 per year. Additionally, when that individual leaves, turnover expenses can add up quickly.

Many of our clients find they can outsource the HR function to us and realize a cost savings. Plus, they enjoy the added benefit of having multiple HR professionals, including specialists and a chief human resources officer, at their disposal.

Strengthen employee relations

Oftentimes, when employees know a neutral third party is overseeing the HR function, they are more willing to come forward with issues and concerns before things escalate. As such, employees are less likely to turn to state labor departments with complaints.

In addition, as a part of our HR function, we implement performance management programs,, to track the performance of employees in a way that is consistent and measurable, ensuring that individuals across the organization understand – and are actively contributing to – the strategic objectives of the business.

Finally, we can create career paths for key positions and departments. This provides employees clear career direction and showcases growth opportunities that will help retain talented individuals.

Minimize compliance risk and avoid costly fines

When an employer is faced with a state or federal audit, violations and fines may add up quickly. In some states, violations of various wage and hour laws can lead to automatic treble damages being paid to an employee, equaling three times the value of the wage at issue. In many instances, the employer is also responsible to pay related attorneys’ fees and court costs.

When ARI assumes responsibility for your organization’s HR function, our team will review your employee files for compliance with federal, state and local laws, both for wage and hour issues and immigration law compliance. We will verify your I-9 employment eligibility documentation and take steps to ensure it is in order and will also ensure your organization adheres to document retention mandates set by state and federal authorities.

Along with this service, our team will review your employee classifications under the Fair Labor Standards Act (FLSA) to ensure all individuals are classified correctly (i.e., exempt vs. non-exempt status, minimum wage requirements) and are being paid appropriately.

Stay current with evolving state and federal HR regulations

In small businesses, oftentimes an administrator is tasked with handling HR work. However, in many instances these individuals are not trained, nor do they have access to adequate resources for ever-changing state and federal laws. Without such training and resources, it is impossible for these individuals to fully understand the risks related to non-compliance.

An example of this are the prescriptive pay transparency laws that are being enacted in several states, including Connecticut. Under this legislation, employers are required to provide salary range information to applicants by the time they extend an offer of employment — even if the applicant did not request it.

Rely on an entire team of HR professionals

If you employ an HR generalist, he or she likely has a full plate simply managing all of the day-to-day HR administrative tasks.

When you work with ARI, we have a team of experienced HR professionals at every level, to handle not only your HR administration, but also to provide higher-level HR support to your employees, including comprehensive HR programs and processes, and career development opportunities, to keep employees engaged with your business.

Minimize time spent on hiring talent

Hiring new talent is time consuming. ARI will manage all aspects related to your recruitment process, including placing advertisements for open positions, collecting and reviewing resumes, assessing employment applications, conducting interviews and reference checks, and compiling the results of background checks, employment test results and credit reports. We do it all – giving you more time to focus on your organization’s goals.

Get valuable guidance when dealing with challenging employee situations

Employee relations can be tricky, especially when it comes to disciplinary actions and terminations. Our staff is experienced in how to handle such situations fairly for all parties while maintaining legal compliance, and we can guide you through the process – or we can address issues directly with the employee and his or her supervisor.

We will also ensure all recommended and required backup documentation is in order, which is critical in the event a claim is made.

Get staffing flexibility

Your organization’s HR needs fluctuate. We can handle special projects such as distributing and analyzing employee surveys and drafting employee handbooks.

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Your employees are your business’s greatest asset, so you need to make sure you are managing them effectively.

If you would like to explore how ARI can partner with you for your HR needs, contact us and we will schedule a time to discuss.

In the meantime, discover all of the HR services we offer.