If you are ready to save time and remove your administrative workload, full-service HR outsourcing could be the answer. This can help you streamline tasks and focus on activities that actually improve your bottom line. Is this the right choice for you though? What are the benefits of fully outsourcing your HR tasks? Let’s break it down. 

What is Full-Service HR Outsourcing? 

It’s exactly what it sounds like, outsourcing all or most of the tasks associated with HR. Unlike partial outsourcing, which merely assigns specific tasks to external suppliers, full-service outsourcing encompasses the complete range of HR functions. This comprises not only administrative activities like payroll and benefits administration, but can also include components like employee engagement, performance management, and organizational growth. Doing so can free up time for business owners or provide administrative access to better processes and technology.  

Types of Full-Service HR Outsourcing  

There are two main types of full-service outsourcing most companies seek: PEOs (Professional Employer Organization) and general Outsourcing Services.  

PEO (Professional Employer Organization):  

PEOs function on a co-employment basis, which means that the PEO becomes the employer of record for tax purposes and other HR services. The client company retains authority over the work performed by employees. This agreement enables firms to outsource all aspects of their human resources functions, including payroll, employee benefits, workers’ compensation, and employment taxes.  

This type of model allows companies to offer employees better tools and benefits, usually at a lower cost. This is because PEOs combine the employees of multiple companies, giving them bargaining strength to acquire better rates on health insurance, retirement plans, and other benefits. Furthermore, PEOs provide a degree of HR and compliance expertise that would be prohibitively expensive for small businesses to achieve in-house. 

General Outsourcing Service 

Human Resources Outsourcing (HRO) services provide an additional option for firms wishing to outsource their HR responsibilities. Unlike PEOs, HROs do not use a co-employment model. While many companies use these services to only outsource specific tasks, many allow you to outsource many or all of your HR tasks.  

HRO services are especially appealing to organizations that want to keep control of their employment status while still benefiting from outsourced HR knowledge. They also allow you to customize exactly all the services you need. 

Types of Tasks That Can be Outsourced 

While there are PEOs and Outsourcing HR firms that specialize in certain industries or tasks, there are some general tasks that most full-service HR platforms can tackle such as: 

Payroll Processing 

This involves calculating payroll, hours worked, overtime, bonuses, and deductions. They’ll also handle tasks like managing employee tax withholdings and submitting necessary reports to government agencies. They’ll also help with keeping up to date with payroll laws and changes.  

Talent Search 

Have an expert team search for candidates from all around the world with a full-service HR provider. They’ll post the jobs on the relevant boards and filter candidates; they can even conduct initial interviews to further filter candidates.  

Onboarding Employees 

HR providers can handle all the administrative tasks with bringing on new employees like Handling employment contracts, tax forms, going over the roles for the position, and organizing training sessions.  

HR Administration 

Full-service HR outsourcing can manage employee benefits programs, including health insurance, retirement plans, and leave policies. They can also be tasked with recording employee data and storing that documentation.  

Filing Taxes for You 

One of the best things about full-service HR companies is that they can make taxes a breeze. They can help prepare and even file some tax information when it comes to employees as well as provide documents for you.  

Compliance 

HR experts can help you stay on top of compliance by staying up to date with law and regulatory changes. More importantly, full-service HR providers can help you implement policies in place to make sure that employees follow rules and keep everyone compliant.   

Employee Management 

Just because you use a full-service HR outsourcing provider, it doesn’t mean you can’t have proper employee growth. HR services can do performance evaluation processes, including feedback collection and review meetings. Providers can also organize professional development for companies and specific employees. 

Benefits of Using Full-Service HR Outsourcing 

There are many valuable benefits to using full-service HR outsourcing. In fact, they could make their own article, which we’ve written. Some of the top benefits include: 

• Gain access to HR Experts 
• Use the latest HR Tools 
• Save Time on Administrative Tasks   
• Expand Your Talent Search 
• Handle Payroll with Ease 
• Focus Your Energy Elsewhere 

If you’d like to read more about the benefits and go in-depth, check out our article here: 

When is Full-Service HR Outsourcing Right for You? 

Deciding to outsource is a significant step for any business, impacting operations, employee satisfaction, and financial management. Outsourcing isn’t right for everyone though, here are a couple of key metrics to consider if you are considering using one of these services. 

You Need to Free Up The Administrative Workload 

If you find that your administrative team is stuck working on paperwork or trying to sift through compliance with regulations, it may be time to call in the experts. If you are looking to save your team time and focus on bigger projects, outsourcing could be the solution. 

Rapid Growth or Scaling Challenges 

Businesses experiencing significant growth find that their own HR capabilities are stretched thin. Outsourcing HR functions can give the scalability required to manage a rising staff count while maintaining quality and compliance. 

Difficulty in Managing Compliance 

Legal and regulatory compliance gets more challenging as organizations grow. This is also doubly true for organizations that are expanding their services. If you don’t have experts already, outsourcing HR can be one of the best tactics for dealing with things like tax regulations and compliance standards.  

Limited Internal HR Expertise 

Are you a small business owner who doesn’t have a ton of HR expertise? You are not alone. Many don’t have the resources to staff a full HR department with experts in all aspects of human resources. Outsourcing provides access to a wide range of HR knowledge, including legal compliance and employee development initiatives. 

Want Access to Better Software and Tools 

Implementing innovative HR technologies can be prohibitively expensive for many businesses. Outsourcing HR activities frequently allows access to these technologies, including sophisticated HRIS (Human Resource Information Systems). You don’t have to build out a whole infrastructure that will cost your business thousands.  

Price of Full-Service HR Outsourcing 

There is no set price for full-service HR outsourcing because these services are oftentimes customized to fit the business. Most of the time, it will be a combination of pricing based on your needs. Here are some of the most common pricing methods for full-service HR outsourcing: 

• A percentage of payroll proceed 
• A flat fee per employee 
• A percentage based on the number of employees 
• A combination of these or a custom quote 

Your price will also be determined by factors such as 

• Company size 
• Services needs 
• Special services needed or exceptions 

Considerations for Cost-Benefit Analysis 

When determining the cost of full-service HR outsourcing, consider not only direct costs but also possible savings and value provided. Outsourcing can reduce the requirement for in-house HR personnel, lower the risk of compliance penalties, and boost operational efficiency. 

Want a Full-Service HR Outsourcing Provider?  

Are you looking for a full-service provider that understands your needs? Don’t worry, 360Connect has got your back! Just fill out our 1–2-minute form and you’ll receive up to 5 free quotes on services! It’s that simple.