Outsourcing has become increasingly important as HR professionals seek ways to reduce time and resources spent on transactions and administration, so they can concentrate on more strategic activities. This reduction in time and resources also translates to savings for the business. When HR departments decide which functions to retain and which to outsource, many hold on to talent management, recruiting and succession planning, while handing off payroll, benefits administration and other routine tasks to third-party vendors.
Besides giving in-house HR professionals more opportunity to focus on strategy, outsourcing can:
- Provide companies access to specialized HR expertise.
- Help with regulatory compliance.
- Speed up response times on transactional HR functions such as benefits enrollment and payroll.
In addition, there can be technology benefits. For example, through the use of a SAAS provider that provides and maintains software, employers gain the benefits of advanced software systems and avoid possible technical hassles of managing programs onsite.
Here is what you can expect to be handled by your PEO partner:
- Employee handbooks
- Job descriptions
- Supervisor guidance and coaching
- New hire onboarding
- Assistance with performance issues up to termination
- Personnel file maintenance
- HIPAA compliance
- Employer Practices Liability Insurance (EPLI)
- Reward and recognition programs
- Employment verification
- Drug free workplace policy administration
- Unemployment claims administration
- Training and development
- Recruiting services available for an additional fee