HR is a vital element of any successful business, but if it’s not run well, it can cause innumerable problems. One way of preventing the following mistakes is to hire an outsourced Human Resources provider who can take care of your payroll, too.
Here are just 4 of the many costly HR mistakes you definitely don’t want to make:
- Making bad hiring decisions
Making the right hiring decisions first time around is essential, as not only is the recruitment process costly, but if you have to repeat it frequently – such as when a new hire leaves within a year of their employment – the cost can really add up.
Research has shown that in the U.S., average hiring costs come in at around $4,425, with that figure shooting up to $14,936 for executive employees. Add that to the fact that around a quarter of employees leave their position within the first year, and you’ve got a pretty hefty bill!
Surveys have also shown that almost 40% of employers report a reduction in productivity due to bad hiring decisions. Fortunately, when equipped with the right tools, experience and skills – such as those that an outsourced HR provider has – hiring new talent can be made more efficient and successful, saving costs and keeping production levels high.
- Not keeping up with changes to compliance standards
Did you know that more than 450 different government agencies currently exercise regulatory power over American businesses? The cost of meeting federal regulations is estimated to be as much as much as $2 trillion every year, and with new regulations implemented in the wake of the COVID-19 global epidemic, business owners and managers have had to really stay on their toes to keep up with compliance.
Staying ahead of ever changing compliance standards is vital for any successful business, no matter its size, and many find that they can only achieve this with the help of an outsourced HR service. With their up-to-date knowledge of workforce changes and access to tools that reduce your company’s exposure to audits and penalties surrounding employment law, they can help you avoid costly compliance issues and keep employees both satisfied and protected.
- Failing to give employees insight into their pay checks
Nowadays, employees want to see and understand everything that’s on their pay checks, and with good reason, too. However, it’s not always easy for employers to ensure that this happens without the help of a professional HR service, and employee confidence can falter as a result.
Working with an outsourced HR provider will ensure that the risk of compliance issues are eliminated, and that each and every employee has complete visibility and transparency when it comes to their pay checks.
- Not providing enough training and development
It can be tough for US companies to attract and retain the very best talent, but by offering training and development opportunities to all new employees, you can help your business stand out from competitors, and find and keep the best talent for your company.
To avoid making any of the above HR mistakes – or to correct them if you’ve already made them – try working with an outsourced HR provider. Easy, affordable and convenient, outsourcing your HR requirements can save you a whole lot of time and money, and is the smart choice for savvy business owners today.