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.
Online Payroll
Technology is giving businesses a greater ability to track and store crucial business information. Outsourcing online payroll services to a PEO is one way businesses are taking advantage of advancing online capabilities to improve business efficiencies and save money.
According to a survey conducted by cashflow management site Bill.com, nearly half of accounting professionals wish that they could eliminate paper checks. With online payroll services, you can. Nearly half of CEOs name sustainability as a top-three initiative for their organization, and a paperless workplace can help your business take a big step toward that goal.
More businesses are turning to online payroll because it benefits your business, your employees, and the environment. Businesses benefit from a streamlined payroll solution that cuts down on management time and allows you to manage and access all your important information from anywhere. This easily-accessible system also makes it easier for employees to track time and access W-2s and paystubs. Finally, the lack of physical checks and files lowers your paper usage and storage, aiding the environment and allowing you to “save between $2.87 and $3.15 per pay run by paying employees electronically” according to Business News Daily.
Workplace Wellness Programs
These days, businesses are looking to pump up their health-related benefits offerings, especially workplace wellness programs and other related wellness perks. According to a research report by the Society for Human Resource Management, 24 percent of organizations increased wellness benefits in 2016, more than any other specific type of benefit.
Why are businesses gravitating toward adding wellness benefits? SHRM offers the following reasons:
- 88 percent of organizations with a wellness program rated their initiatives as somewhat or very effective in improving employee health
- 77 percent of organizations indicated their wellness program was somewhat or very effective in reducing health care costs
- 53 percent of organizations wanted to create a culture that promotes health and wellness
A workplace wellness program is a great way to benefit both your employees and your business by actively promoting a healthier lifestyle inside and outside the workplace. The CDC Foundation notes that the average productivity loss linked to absenteeism was $1,685 per employee. Promoting wellness can improve the lifestyles of your employees and help you cut down on productivity loss and rising healthcare rates.
Take Advantage of HR Outsourcing Trends
Whether you’re looking for help managing the latest HR trends or more traditional business functions, a PEO can be the way to go. A PEO can help you manage a wide variety of critical tasks through, offering a variety of the benefits associated with HR outsourcing, such as saving yourself time and money while protecting your business from compliance concerns or retention woes. Contact GMS today to talk to one of our experts about how we can help your business manage HR.