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How Does HR Contribute To An Organization’s Success?

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Tedious paperwork and compliance can be a drag, and a lot of times, it feels like it’s impossible to keep up. As a small to medium-sized business (SMB), if day-to-day HR administration is holding you back, it’s a great time to try outsourcing HR functions.

Outsourcing HR will give you critical time to focus on strategy, seizing new opportunities and growing your SMB. This, along with being able to save the business money, are incredibly beneficial. How can your growing business harness the benefits of outsourcing HR functions that ultimately contribute to your success?

Here’s why outsourcing your HR functions could be one of the most innovative and rewarding decisions your SMB will make:


Research shows that despite working an average of 50-plus hours per week, business owners only spend about 30% of that time on core business functions that play a key role in the business’s success. The rest of their time is spent on administrative tasks that don’t contribute to revenue.

This is worrying, but no cause for alarm, as outsourcing HR functions can allow you to focus more on strategy, managing your team and growing your business instead of being slowed down by menial tasks. It will also give you more time to focus on the bigger picture, which is a prerequisite for success.

Steering Clear Of Costly Mistakes

The consequences of making mistakes when handling HR functions can be a complete nightmare — like pulling out your hair, hiding in a closet and crying yourself to sleep nightmare. A fundamental way your business can benefit from outsourcing HR is by avoiding errors. About 81% of small businesses that handle their HR functions end up making errors. Also, over 30% are not confident they are carrying out HR tasks correctly.

Imagine the issues that arise from payroll errors, botching check disbursements/direct deposits, making costly overpayments, or inadequately keeping records. By outsourcing your HR functions, your HR consultants will handle the tasks thoroughly to avoid mistakes, so that you can keep your hair.

Enhanced Productivity

As a SMB owner, you probably assign many duties and responsibilities to your employees. This seems like a cost-effective practice on the surface, but if each employee has to be a jack of all trades, they are less likely to pay attention to their official roles. You don’t want your top sales employee managing employee files or your CFO processing payroll. You want them out there driving revenue.

By outsourcing HR functions, your employees can focus on higher-level initiatives that add value to your business. In addition to maximum employee output, you will be able to pay more attention to setting goals, public relations, marketing and developing strategic plans, all of which are critical factors in increasing revenue.

Minimized Liability

HR processes can be complex, which can bring significant challenges to SMBs. Regulations change at an alarming rate now more than they did in the past, making it difficult to stay on top of things. This can result in financial and legal implications when your business can’t keep up. Even a dedicated in-house HR employee would find this difficult.

Not only does being unable to keep track of legal requirements lead to fines, but employee loyalty may also be negatively impacted. Thankfully, outsourced HR consultants help your business stay on track with legal requirements, thereby minimizing risks and protecting your business from liabilities.
Money-saving avenue

The next time you feel the itch to hire a full-time internal HR professional think about the loss of cost savings erased by the salary and benefit fees of that hire. By saving money permanently through outsourcing, more funds will be available to invest in core resource allocation. With more time available for your strategic planning due to outsourcing, your return on investment will pay much in dividends as you continue to create efficiencies and best practices.

Outsourcing HR will do a great job helping your business reach its goals faster with the peace of mind that comes with knowing the tasks you are not handling are taken care of by experts — what a big win!