Getting Back To Business: HR Outsourcing’s Big Advantage

Running a business isn’t easy. As almost any CEO can tell you, doing their job right means doing several jobs right – and doing them all at once. All too often, many of these jobs consist of burdensome HR activities that don’t generate revenue, drive sales, or build competitive advantage, but which are nonetheless essential to daily operations.

As necessary as it is to keep on top of payroll, tax, regulatory compliance, workers’ comp and other activities, these do nothing to advance the business. In fact, the time devoted to them is time taken directly from strategy, promotion, revenue generation, relationship building, customer service and other core functions of a company. Time spent on administrative matters doesn’t just cost money – it costs opportunity. The attention, resources, and working hours devoted to these tasks isn’t used to create, innovate, expand, or sell – and the lost opportunity to do so may well be taken by the competition.

More and more, companies are recognizing the enormous burden that HR administration is placing upon them – and they’re doing something about it. Outsourcing is becoming a key element in many growing companies’ success strategies as they recognize the unique benefits it provides:

  • Efficiency. Outsourcing HR to a professional solution provider enables businesses to streamline operations and focus efforts where they matter most.
  • Economies of scale. Professional HR practitioners are an expensive, skilled resource; it makes more sense to leverage a shared resource than hire in-house personnel.
  • Limitation of liability. By outsourcing HR functions, companies can shift a great deal of legal and regulatory liability to the outsourcer, particularly in regard to Worker’s Compensation.
  • Expertise. The best HR outsourcing firms are specialists in what they do, with exhaustive procedural, legal, process and regulatory knowledge that few in-house departments can match.

Companies with outsourced HR functions quickly reap the rewards of this new management model – and the differences they see are reflected in their growth trajectories and their bottom lines.

A white paper published by the National Association of Professional Employer Organizations shows that companies that outsource HR functions experience a 9% higher employment growth rate than those that don’t. In addition, they show a 4% higher employment growth rate than in the overall economy.

At Trion, we’ve helped countless clients get their opportunity mojo back. We know from firsthand experience that for a company to succeed to their greatest potential, its senior management must remain focused on business-building activities. We make it our job to make that possible.