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The Essential Guide to HR Outsourcing for Small Businesses

January 31, 2024

Written by Complete Payroll

hr outsourcing small businesses

Human resources management for small businesses can be complex and time-intensive. Due to resource limitations, many small businesses simply do not have the ability to manage HR efficiently, ensure compliance with legal requirements, and maintain focus on business growth. These are just a few of the reasons small businesses turn to HR outsourcing.

However, even businesses with dedicated accounting, payroll, or HR teams choose outsourcing to help reduce costs and provide a better employee experience. Gartner studies show that organizations investing in the employee experience see significant benefits, including a 31% higher retention rate and a 35% improvement in effort.


Outsourcing HR: A Strategic Move for Small Businesses

HR outsourcing for small businesses is a strategic move to reduce administrative work and lower employee management costs. Partnering with an HR service provider offers a unified system to streamline HR management and frees up business leaders and owners to focus on business growth rather than administrative tasks.

When you work with an HR solutions provider, you benefit from deep experience that simplifies the human capital management process. You can access HR templates, forms, and resources to streamline processes.

The best providers will also offer live HR consultancy support to help you manage your employment strategies. This can be especially helpful in navigating complex — and constantly evolving — labor laws.

Which HR Functions Can Be Outsourced?

When you work with the right partner for your outsourced HR, you can get a wide range of small business HR solutions, including these human capital management tasks:

  • Payroll administration
  • Talent recruiting
  • Employee onboarding and offboarding
  • Labor law compliance
  • Compliance management in HR
  • Employee welfare
  • Benefits administration

When you work with the right HR outsourcing partner like Complete Payroll, you can combine modern, all-in-one workforce management with a dedicated team of HR experts. This allows small businesses cost-efficient access to larger organizations' advanced tools, tactics, and experience without worrying about HR staffing, equipment, or software.

Costs are amortized across multiple clients, allowing outsourcing partners to provide high-quality services at a fraction of the cost of doing it in-house.

While lowering employee management costs is one of the key reasons small businesses opt for outsourcing HR, nearly 40% of businesses say they outsource HR functions to be able to focus more time on core business activities.

Key HR Features to Consider for Small Businesses

Small businesses should evaluate HR outsourcing partners based on their unique needs. For example, restaurants prioritize labor law compliance, while professional services firms focus on applicant tracking and onboarding. However, both require payroll administration. Small and midsized businesses should choose a provider that simplifies administrative tasks, ensures compliance, and provides analytics.

User-friendly self-service portals are essential for easy access to payroll details, timecards, schedules, and other information. When evaluating an HR partner, consider future needs and choose a full-service provider with a broad selection of services. The right HR outsourcing solution saves time and minimizes risk across HR management.

Integration with Complete Payroll

At Complete Payroll, we offer specialized outsourced HR services for small businesses, encompassing various administrative tasks. Our all-in-one platform includes efficient payroll solutions, tax calculations, employee self-service for pay information, digital paycheck disbursement, automated adjustments for garnishments and benefits, and detailed financial reporting.

Request an HR Software Demo

We provide comprehensive talent acquisition services, including applicant tracking, background checks, and streamlined onboarding. Additionally, their workforce management features time and labor oversight, scheduling, and expense tracking. Employee engagement is fostered through a dedicated portal, transparent compensation, and charitable donation management. Central to these services is advanced HR software that centralizes workforce and HR management throughout the entire employee lifecycle.

We invite small businesses to explore how HR outsourcing solutions can be transformative, with personalized consultations for tailored support.


DISCLAIMER: The information provided herein does not constitute the provision of legal advice, tax advice, accounting services or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional legal, tax, accounting, or other professional advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation and for your particular state(s) of operation.

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