The end of a calendar year usually causes business owners to do two things: Review the past year and learn from its successes and failures. They also start looking to the new year and set their expectations of what they want to accomplish. While a Professional Employer Organization (PEO) can’t help you with the former, it can help you tackle the latter.
As the years go by, HR administration continues to evolve. The growing need for improved operational efficiency and compliance has led more business owners to turn to HR experts for help managing crucial business functions.
This expansion has been so great that the Professional Employer Organization industry has nearly doubled to around $168 billion dollars in the past six-and-a-half years. The need for human resource outsourcing isn’t just a need for one or two different industries, as HR providers saw a 23 percent or greater increase in business from blue collar, white collar, and grey collar businesses.
While businesses often turn to PEOs for help with benefits administration and risk management services, there are other additional HR functions and benefits that have become more popular in recent years. Two of the more intriguing recent trends in human resource outsourcing is a move toward investing in online payroll and workplaces wellness programs.
It’s difficult to run a small business without much support, which is why more employers are turning to human resource outsourcing. According to market research company Global Industry Analysts, Inc., the HR outsourcing market is projected to grow to nearly $54 billion by 2020 as business owners turn to other organizations for help managing important HR functions.
So why have so many businesses turned to HR outsourcing? Here are four big reasons:
- Time savings
- Improved compliance
- Better recruitment and training capabilities
- Cost savings
The benefits speak for themselves, so now it’s a matter of finding out exactly what business responsibilities you can outsource and which ones make the most sense for your business.
As a business owner, you get used to making tough decisions every day. One critical question is whether you should handle every human resource function internally or if it’s in your business’ best interest to consider outsourcing.