What Is an HR Outsourcing Company?
HR outsourcing companies provide external management of human resources functions such as payroll, benefits administration, compliance and employee relations.
These companies offer expertise and resources that help businesses streamline HR processes, reduce costs and focus on core operations.
Axcet HR Solutions is a leading HR outsourcing company, offering comprehensive services tailored to meet the needs of small to mid-sized businesses.
Why Choose an HR Outsourcing Company?
Should you partner with an HR outsourcing company? Before deciding, let’s first define the problem. Do any of these small business challenges sound familiar?
Expensive health insurance options
High renewal rates on your healthcare
Employee issues without clear solutions
Working evenings or weekends on routine HR tasks
Ignoring HR issues hoping they don’t become costly
Unsure where to turn for HR answers
Struggling to scale HR operations with business growth
HR Management Options
If these challenges resonate with you, consider these HR outsourcing options:
Continue managing HR in-house.
Focuses only on health insurance, not comprehensive HR needs. An insurance broker is not designed to help with HR, payroll or safety. This means you’ll need to find support in another company for those issues or struggle with the broker's “add-on” HR services.
Handles payroll but may lack full HR expertise. Although some payroll providers offer HR services, it’s not their core competency, so they may struggle to meet your business needs.
Specializes in recruiting, hiring and onboarding, but not comprehensive HR solutions. Again, the full HR spectrum is not a core competency of this type of outsourcing company and business needs may not be met.
PEOs, like Axcet HR Solutions, manage all your HR needs. As comprehensive HR outsourcing companies, PEOs handle payroll processing, benefits administration, workers' compensation and risk management. These services are tailored specifically for small to mid-sized businesses.
PEOs offer a holistic approach to HR outsourcing services, ensuring all aspects of human resources are managed efficiently and effectively, allowing business owners to focus on core operations and growth.
To learn more about how PEOs can transform your HR operations, visit About PEOs »
The pros and cons of outsourcing human resources.
Many small and medium businesses find their resources stretched thin, so they choose to double down on their strengths and outsource other tasks to outside experts. If you’re debating partnering with an HR outsourcing company, watch this video to learn the pros and cons.
Types of HR Outsourcing Companies
ASOs provide administrative HR services such as payroll processing and benefits administration without taking on co-employment responsibilities.
HROs offer a wide range of HR services that can be picked and chosen as needed. They do not act as co-employers, which allows for flexibility but might lack the integrated approach of other models.
PEOs offer a full-service HR solution under a co-employment model, which allows them to provide comprehensive benefits and handle all HR functions. PEOs are ideal for businesses looking for an all-encompassing HR management solution.
Certified PEOs, like Axcet HR Solutions, have met stringent IRS requirements, ensuring compliance with high standards of service and financial stability. As a certified PEO, Axcet provides the highest level of HR management, including payroll processing, benefits administration, risk management and more, all while ensuring compliance with federal and state regulations.
Partnering with a certified PEO gives businesses peace of mind knowing they are working with a trusted and reliable HR outsourcing company.
The Pros and Cons of Partnering with HR Outsourcing Companies
Pros of Using an HR Outsourcing Company
Outsourcing can reduce the need for an in-house HR department, cutting down on overhead costs.
Provides access to specialized knowledge and expertise in HR management that might not be available internally.
Allows businesses to concentrate on their core activities by offloading HR tasks to experts.
Offers flexibility to scale HR services up or down based on business needs without the need to hire or lay off staff.
Helps ensure compliance with ever-changing employment laws and regulations, reducing the risk of legal issues.
Access to the latest HR technology and systems without significant investment in software or training.
Streamlines HR processes, such as payroll and benefits administration, making them more efficient and less prone to errors.
Cons of Using an HR Outsourcing Company
Outsourcing HR functions can lead to less personalized interaction between employees and the HR team.
Relying on external providers for HR services might result in the diminished development of internal HR capabilities, limiting the company's flexibility in managing HR-related challenges.
External HR providers may not always be immediately accessible for urgent issues or in-depth consultations.
PEO/HRO – What's HR Outsourcing? What's a PEO? How to select a PEO.
White Paper
Transitioning to the HR Outsourcer
One of the top functions small & mid-sized business owners outsource is their organization’s human resources. From compliance and payroll to recruiting and hiring, HR is mission critical. It requires specialized expertise and daily attention. Find out eight goals for transitioning HR services to a third-party provider.
White Paper
Understanding the Outsourcing Agreement
When you partner with an outsourced HR company for your business' HR needs, you are entering into a contractual agreement that, when properly designed, should set the stage for a successful, long-term relationship. Find out six must-have components of your outsourcing agreement.
Why Axcet?
Let’s face it. When it comes to HR administration, you have choices. So, why choose Axcet?
We believe in trust, relationships and an undying commitment to our clients’ success.
At a time when you need peace of mind and a trusted advisor to help you make tough choices, our experience and expertise as a certified PEO can give you the confidence to focus on growing your business.
We believe our HR support and expertise can help your business scale and grow in ways you couldn't have imagined. As a trusted advisor, we are dedicated to helping your company succeed and thrive.
Many HR outsourcing companies offer support, but we go above and beyond to ensure your business has the resources and guidance it needs to reach its full potential.
If we sound like a company you’d like to partner with, let’s talk.
HR Blues? Let's Talk.
Our veteran team of SHRM-certified human resources consultants and our access to employment law attorneys provide your business with unparalleled HR expertise. Add Axcet's HR team to your bench so you can get back to what matters. Reach out today.
Schedule a consultation with Axcet today.
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