As a business owner, you may have considered outsourcing your human resources (HR) functions to a third-party provider. HR outsourcing can be an effective way to manage staffing, benefits, payroll, and other HR tasks, freeing up time and resources for other aspects of your business.
Benefits of HR Outsourcing in Kansas
Cost Savings
One of the main reasons many businesses choose to outsource their HR functions is cost savings. When you work with a third-party HR provider, you can reduce expenses associated with hiring and training staff, as well as managing benefits and payroll. According to a survey by the Society for Human Resource Management (SHRM), 38% of small and mid-sized businesses reported cost savings as their primary reason for outsourcing HR functions.
Expertise and Knowledge
HR providers have specialized knowledge and expertise in managing HR tasks, which can be difficult for in-house staff to keep up with. By working with an HR provider, you can ensure that your business is staying compliant with employment laws and regulations, as well as providing staff with the benefits and resources they need to succeed. According to a survey by Deloitte, 84% of businesses said they worked with an HR provider because it gave them access to specialized knowledge and expertise.
Scalability
HR outsourcing can also be beneficial for businesses that experience fluctuations in staffing needs. For example, during peak seasons or periods of growth, you can easily scale up your workforce without the need for extensive hiring and training costs. According to a survey by HR Bartender, 51% of businesses said they worked with an HR provider because it allowed them to scale their workforce as needed.
Risks of HR Outsourcing in Kansas
Data Security
One of the main risks associated with HR outsourcing is data security. When you outsource HR tasks, you may be sharing sensitive employee information with a third-party provider. According to a survey by the International Association of Privacy Professionals (IAPP), 34% of businesses said data security was their primary concern when outsourcing HR functions. To mitigate this risk, it’s important to choose an HR provider that has strong data security protocols and practices in place.
Communication and Control
Another risk associated with HR outsourcing is a lack of communication and control over HR tasks. When you outsource HR functions, you may feel like you have less say in how those tasks are managed, which can lead to frustration and dissatisfaction. According to a survey by SHRM, 42% of small and mid-sized businesses said they worked with an HR provider because it allowed them to have more control over their HR tasks. To mitigate this risk, it’s important to choose an HR provider that offers customized solutions and open communication channels.
Case Studies: Successful HR Outsourcing in Kansas
Johnson Controls
Johnson Controls is a global manufacturing company based in Milwaukee, Wisconsin. In 2015, the company outsourced its HR functions to ADP, an HR provider based in Roseland, New Jersey. According to a case study by ADP, outsourcing HR tasks allowed Johnson Controls to save time and resources, while also providing employees with access to specialized knowledge and expertise. The company was able to streamline its payroll processes, reduce compliance risks, and improve employee engagement and retention rates.