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HR Outsourcing | SurePayroll By Paychex

November 20, 2024

By Claudette Zolkowski

Three co-workers discussing office procedure in their small business.
If HR and compliance issues are diverting your focus from your small business, human resources outsourcing may be just what you need.

ADA. HIPAA. EEOC. COBRA. FMLA. FLSA. ERISA.

Recruitment. Retention. Regulation. Conflict resolution. 

It’s easy to feel overwhelmed by human resources issues, compliance regulations and worker demands for your time and attention.

You’re not alone. Two out of three business leaders report spending at least 11 hours each week on HR administration. That’s more than 25% of the average workweek.1

If this situation sounds familiar, HR outsourcing might be the solution for you. Outsourcing HR tasks could lighten your load and give you more time to focus on your business, customers and employees.

You’re not alone. Two out of three business leaders report spending at least 11 hours each week on HR administration. That’s more than 25% of the average workweek.

—Dustin S
You’re not alone. Two out of three business leaders report spending at least 11 hours each week on HR administration. That’s more than 25% of the average workweek.1

What is Outsourced HR?

Human resources outsourcing can offer small business owners access to professional-level HR support without the costs of creating an in-house HR department. It also helps avoid the risks involved in tapping an inexperienced worker to take on HR responsibilities and compliance.

HR services could include functions such as payroll, time and attendance tracking, recruitment, onboarding and training, employee benefits, and safety and wellness. 

While outsourcing HR tasks might sound costly, it doesn’t have to be. And with the time and money you save, it could pay for itself.  

HR Outsourcing Options

Small business owners can access the same kind of HR support larger companies enjoy at a fraction of the cost when they opt to use a software-as-a-service HR and compliance platform, such as SureHR, powered by Mineral©.  

In this model, you select a plan with the features that best meet your needs and budget.

Other HR outsourcing options can include: 

  • Professional Employer Organization, or PEO, allows small businesses to outsource HR to a third-party provider.
  • Administrative Services Organization provides similar HR administration, payroll, benefits and compliance support  

Benefits of Outsourcing Human Resources

When you outsource HR you can help take the guesswork out of HR and compliance for your business.  

Business leaders1 report outsourcing HR functions has helped them:  

  • increase productivity 
  • improve regulatory compliance 
  • decrease mistakes  
  • reduce costs 
  • gain better analytics and reporting  

Other benefits can include: 

  • access to expert guidance 
  • time savings  
  • flexibility and scalability  
  • improved employee experience 

Common HR Outsourcing Functions

According to business leaders,1 the HR responsibilities that take up the most time are:  

  • managing 401(k) or other retirement plans  
  • payroll processing and tax filing
  • benefits administration  
  • people management  

Business owners can take advantage of the many HR outsourcing options available to help tackle those time-consuming tasks, streamline operations and reduce overhead costs.

It’s best to take time to compare solutions to find the services that meet your needs. Consider services like:  

  • payroll processing, including withholding, filing and paying payroll taxes and other deductions 
  • performance management and training  
  • background screening and drug testing  
  • wellness plans, such as Employee Assistance Programs (EAP)   

Learn how bundling services with a company like  SurePayroll® By Paychex can help you quickly and easily pay your employees, calculate and pay your payroll taxes, and tackle HR tasks and compliance challenges.  

Choosing an HR Outsourcing Solution

Here are things to consider when selecting an HR outsourcing solution.

  • Expertise and experience. Look for a company with a proven track record in providing HR solutions for small businesses.
  • Range of services. Does the company provide the solutions your business needs?
  • Reputation: Look into the company’s reputation. Ask other small business owners for references. You can also check review sites like Better Business Bureau or Trustpilot.
  • Technology and tools: Ask for a demo to assess if the available tools match your needs and are easy to use.

HR Outsourcing FAQs

Is outsourcing HR a good idea?

Yes. Outsourcing HR can help small business owners save time and money by providing access to dedicated support without the cost of adding staff.  

With the right HR outsourcing solution, small businesses can achieve greater efficiency, scalability and success.  

What is the most common HR function that is outsourced?  

Payroll and payroll tax management are among the most popular HR functions small business owners outsource.  

Since running payroll can be a time-intensive process that involves federal, state and local tax laws and agencies, many small business owners turn to payroll solution providers like SurePayroll to help them pay their workers quickly and easily.  

What is the primary challenge of outsourcing HR?  

The biggest challenge in outsourcing HR is deciding what HR solutions you need help with. The next is finding a company that can cost-effectively meet your needs. This can give you the freedom to concentrate on your business, customers and employees.  

Simplify Payroll and HR

You’re an expert in your field. You don’t need to be one in payroll and HR. You can get back to your business with the easy and affordable solutions from SurePayroll.

We can help you quickly and easily pay your employees, calculate and pay your payroll taxes, and tackle HR tasks and compliance challenges.

1 2024 Priorities for Business Leaders, Paychex

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This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up to date

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