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How Does Outsourcing HR Enable Creating Company Culture?

How Does Outsourcing HR Enable Creating Company Culture?
It’s common sense that an organization that has a positive corporate culture leads to happier workers and it would stand to reason, that those happier workers would be more productive. In most organizations, Human Resources is in charge of corporate cultural initiatives. Most people assume that outsourcing HR would have a negative impact on corporate culture, but it can actually provide several avenues to improve it.

Focus on Strategic HR
Chances are your business has experts surrounding your core competencies. You likely have a niche that plays to the strengths of your employees and that’s what makes your organization money. It’s also very likely that HR isn’t one of those core competencies. The fact is, most people don’t go into business to fill out paperwork. Outsourcing transactional HR enables you to spend more time on strategic HR initiatives.

Bring in Dedicated Subject Matter Experts
Not only does outsourcing your administrative HR tasks free up your time to focus on the strategic HR initiatives that drive company culture, but it should give you access to dedicated subject matter experts. These HR experts can provide in-depth knowledge in employee engagement, performance management, benefits, recruiting, and compliance that you wouldn’t otherwise be able to procure. HR is incredibly complex and covers numerous areas of specialty that no one person could be an expert in. For example, you may only need a performance management specialist for 10 hours per year around review time. That’s not an amount of time that makes economic sense to hire additional staff for, but it makes a big difference when an outsourced HR partner makes that specialist available to you.

Access to a Wider Network
The companies that you outsource with likely work with hundreds of different organizations in dozens of industries. They’ve seen cultural initiatives done numerous ways and noted which have been successful and which haven’t. With such a broad network of companies, they have a much better picture of regional trends, and can help you react to them. For example, it might have been beneficial to get a heads up about “Quiet Quitting,” and some insight into how your peers have been handling it.

Strengthen Benefit Offerings
No matter how wonderful it might be to work at your organization or how much time you invest in your culture, you still have to compensate your employees fairly. Benefits are an important part of that compensation. The sheer number of benefits that employees are expecting these days can create an unmanageable administrative burden on small businesses. Best in class employers offer benefits including medical, dental, vision, life, LTD, STD, accident, hospital, critical illness, EAP, home, auto, pet, and legal among others. Full-service HR outsourcing with payroll, benefits and HR already has the systems in place to effectively manage all these benefits with market leading
technology.

Modernize HR Technology
When you outsource, you should get access to HR technology that was vetted, purchased at a volume discount, and extensively trained on. Your organization should get the benefit of the organizational efficiencies that this tech brings. Having modern HR technology, especially at a small business, can make you look bigger than you are. The inverse is also true. Utilizing outdated HR methods, could be inefficient or lead to mistakes with HR paperwork, that can quickly make your business look disorganized and damage morale.

Invest in Your Employees
Outsourcing can be a big change for your organization and your employees will ask about it. They are going to know that an outsourced HR firm isn’t free. Make sure to point out that it’s an investment in them for all the reasons we’ve already discussed. You’re spending money on outsourcing your HR so that your employees can have access to the best benefits, the best experts, and so they can have their time freed up to work on what they are best at. Furthermore, employees should like having a 3rd party HR resource. Employees with a grievance feel a lot more comfortable complaining to an outsourced partner that appears much more unbiased. This allows leadership to have a clearer picture of potential employee relations issues your organization is facing.

While it’s not intuitive, that outsourcing your HR can enable the creation of better corporate culture, the case for it is quite compelling. When you eliminate time consuming transactional HR tasks, bring in seasoned experts with an extensive network, modernize your HR technology, and demonstrate the value to your employees, fostering a positive corporate culture becomes much easier.