Once seen by many as an insignificant resource used solely for event planning and listening to employee complaints, HR has evolved into a significant leader of modern businesses. Business leaders must redefine the role HR plays in their minds so it can be fully utilized as the valuable asset it truly is. As talent management has jumped to the top of the list of business concerns, employers can’t afford to ignore the necessity of employing a strategy for managing the demands of the workforce. Expertise, knowledge and experience are necessary to safeguard sustainability and to facilitate growth.
Employers must disregard the old notion of “they’re fortunate to have a job with us” and realize that today’s employees are more like customers than subordinates. This shift requires that business leaders rethink the way people are managed. Experienced HR professionals can bring fresh ideas into an organization. They bring insights on what works, and sometimes more important, what doesn’t. HR experts must apply active listening and coaching skills along with partnership building techniques to help leaders solve problems by emphasizing team effectiveness. This has transformed the role of HR into a trusted advisory role that must actively respond to the needs of the business.
Unfortunately, many internal HR departments are struggling to keep up with the evolving workforce. In a survey of 3,300 business leaders, 61% of respondents reported that their current HR solution was barely adequate or was falling behind. Additionally, 72% of respondents said they feel that their HR team was not highly efficient; and only 5% of leaders rated their HR as “excellent.”
A 2013 BLR® (Business & Legal Resources) survey revealed that the largest percentage of U.S. employers have one HR professional for every 50 or fewer employees. However, many employers struggle with this. First of all, it is increasingly more difficult to find experienced and trustworthy HR professionals. Next, it is expensive to keep up with this staffing ratio of 1:50. Third, many business owners are unsure whether the HR people they employ are really doing what needs to be done. The concept of “inspect what you expect” is difficult when you have never done HR yourself. So where can employers turn for help?
Outsourcing HR has proven to be highly effective in assisting with internal leadership development, talent recruitment, and business profitability and growth. If you wonder if outsourcing HR is too expensive, consider this: The cost for an outsourced Professional Employer Organization (PEO) program for 50 employees is approximately 32% less expensive than the average cost for one internal HR employee. And the PEO solution brings a long list of resources that a one-person HR department is unable to provide.
At SinglePoint Outsourcing, our HR specialists have the experience and expertise to help you manage your workforce and re-energize your business. Give us a call today at (559) 625-4800, and let us show you the value of partnering with us.