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Five Ways HR Services Can Positively Impact Profits

December 25, 2018

It’s not always easy to see how using an HR services company could help your business make money. Human Resources is traditionally a cost center and many companies simply don’t see the advantages that a well-developed HR strategy can bring to their business. However, having an experienced third party review your company’s policies and administration is a great way to gain a fresh perspective on how to treat your internal customers and how to develop HR solutions for growing your company.

Here are five ways HR services can positively impact your company’s profits.

Free Up Talent to Build Business

One of the best reasons to use an HR service company is the fact that it frees up your internal resources to pursue new business. HR services for small business are especially impactful because they can free up internal talent. With a small company, the best people often take on administrative tasks in addition to their usual duties. When you use an HR services provider, your best performers will be unencumbered by administrative duties that don’t contribute to the bottom line.

More efficient Payroll and Benefits

HR services can also help established companies. HR and payroll departments can be greatly helped by getting assistance at key points in the year, such as open enrollment or tax time. Easing the usual stress that accompanies these functions will not only help your company’s performance, but will also increase employee morale.

A good HR services company can be very helpful during your day-to-day business operations, especially a company like Commonwealth Payroll & HR that focuses on payroll services. Studies have shown that dissatisfaction with payroll – such as the dissatisfaction caused by inaccurate paychecks – is a leading cause of employee turnover.

Embrace Innovation

Beyond payroll, using an HR service company can bring a fresh perspective to your human resources function. HR service companies have staff with extensive experience. This experience can help your company do things like negotiate better rates from your benefits providers as well as develop and administer programs to better serve your employees, such as flexible scheduling or working remotely. Updating your employee programs is a great way to combat turnover and better control your staffing costs.

Control Staffing Costs

The labor market is right. It’s harder to find new employees today than it has been in several years. It can be easy to simply throw money at recruiting and hope that your company will somehow find the right people. But there are better ways to address this problem. An HR services company can help you find solutions that work for your company, such as better staff development and ways to make your company more attractive to new employees.

Improving (or Implementing) HRIS

Most companies don’t spend much time or energy on their HRIS systems, which is really a lost opportunity for cost savings. Cost and the desire to save money are often given as reasons why many businesses simply don’t look at improvements in this area. However, with the development of SAAS technology, many of the initial costs of updating HR technology have been moderated or simply eliminated.

Beyond cost, however, there’s a knowledge gap. Many businesses simply don’t understand what’s available and how updated HR technology can benefit their business. One of the best aspects of using an HR services company is their extensive knowledge of this technology. Using an HR services company can be a great way to get advice and direction regarding how your company should proceed.

For more information on how Commonwealth Payroll & HR can work with you on your strategic human resources planning, call us today at 877-245-1159.

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