Whenever we’re looking to save time or money, our first reaction as managers and owners is to protect our most valuable assets – those areas that are the most closely aligned with our core business. Ancillary departments such as Benefits or Payroll, for instance, are almost considered “necessary evils” at times, though we don’t often turn to those disciplines for cost savings as often as, say, Manufacturing or Logistics.

However, “Payroll” is one of the most common business functions outsourced by both small and medium-sized businesses. Time consuming and complex, Payroll also requires comprehensive knowledge of both state and federal rules, as well as a considerable capital investment. This leads many companies to conclude that they’d be better off outsourcing Payroll, and redirecting those energies toward initiatives with revenue-generating potential.

Most companies typically first outsource high-volume, transaction-intensive functions (such as Payroll) opting to later add more value-based ones, such as Recruitment. Exacerbating the situation is the already-limited resources available at most small-to-midsize businesses. It’s no surprise, then, that Human Resources Outsourcing, or HRO, firms often first see these types of services as the first ones to arrive at their doorstep.

Take inventory of your businesses’ departments and processes. Look at the resources you currently have allocated toward your ongoing, and growing, Payroll requirements. Then, think about how you could grow the business by allocating those resources in other areas, such as marketing, or inventory control.

Ready. Set. Outsource!

Once thought to be reserved for essentially a small business market, larger companies are now beginning to look at HR Outsourcing. Aside from managing in-house staffing costs, improving services and enabling growing companies access to benefits packages not otherwise available, medium and even large corporations are realizing other valuable services by outsourcing certain HR functions:

Move the needle
Similar to the small business owner, larger companies are even more easily distracted by time-consuming projects that are necessary but may not directly contribute to impacting the business. By outsourcing programs such as Payroll and Benefits, HR professionals can focus on “moving the needle” with initiatives such as strategic planning or increased productivity.

Save a buck, or three
If you think a small business can save valuable time and resources by outsourcing HR, imagine the savings a larger company can achieve. When growing businesses factor in the cost to identify, attract and train viable in-house HR personnel, outsourcing HR areas such as payroll and benefits begins to make sense, and fast.

Keep I.T. simple
We all wish I.T. was a little more scalable, don’t we? Growing companies often find themselves in the unenviable position of having to purchase “add on” modules to certain programs, or shelve a system altogether and endure the financial outlay to upgrade. Medium and large businesses that outsource, however, often avoid those unfortunate Information Technology expenses, letting the HRO firm maintain technology on your behalf.

Think your company is too large to benefit from HR Outsourcing by Syndeo HRO? Look into it. Our guess is you’ll be pleasantly surprised.