Outsourcing Human Resources Helps Companies Stay Profitable in a Down Economy

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Officials at proHR say now is the time to let specialized human resources management firms help businesses manage payroll and benefits, recruit employees and comply with employment laws

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We have seen a rise in small and medium-sized companies asking how we can streamline their human resource expenses. What interests them is getting the expertise of an entire firm of HR professionals for the cost of one internal human resource manager.

Amid the worst economic downturn since the Great Depression, more companies than ever are choosing to outsource their human resources management to outside agencies as businesses continue to tighten their belts, officials at Utah-based proHR said. ProHr President Kristen Harisay said the company has recently met with many clients who are looking to cut costs and gain human resource expertise with an outside agency.

"We share with them what we can offer and find specifically where we can help relieve the burden of a recovering economy," Harisay said.

According to a poll conducted by the Society of Human Resource Management, 26 percent of companies cite saving money as the primary reason for realigning their human resource department with a professional employment organization. Strategic personnel management saves organizations money by managing payroll, 401k plans, recruiting, workers compensation, insurance benefits and other administrative tasks, Harisay said.

“We have seen a rise in small and medium-sized companies asking how we can streamline their human resource expenses. What interests them is getting the expertise of an entire firm of HR professionals for the cost of one internal human resource manager,” Harisay said.

Having a group of human resources specialists working alongside an organization can greatly reduce liabilities by implementing expertise with hiring, employee benefits, risk management and ensuring the business complies with industry and government regulations.

Speaking about ways HR management agencies work with businesses, Harisay explained that “we work hard to match our clients’ internal corporate culture. We want management to have easy access to the tools we provide and for employees to feel comfortable voicing their concerns and presenting ideas for improvement.”

Managers today must comply with a staggering number of laws and regulations. Human resources agencies help ensure that businesses stay up to date with the most recent occupational guidelines.

“Part of what we do with our HR outsourcing is employ preventative measures to protect personnel and find solutions before problems arise,” Harisay said. “ProHR works hard to protect workers rights and create positive employee relations. This in turn increases productivity and reduces turnover, saving the company from future hiring and training costs.”

When considering outsourcing human resources, the goal of many organizations is to refocus energy back into business strategy.

“Business leaders didn’t start in their industry to worry about human resource functions,” Harisay said. “By repositioning their HR with us, they can concentrate their time on what they do best, providing innovative products and services to the market.”

About proHR

West Jordan, Utah-based proHR is a national human resources management service specializing in the HR needs of small and midsized businesses working within Web-based and technology-driven sectors. ProHR understands that nothing is more critical to a company’s success than the effective management of its most important asset – human capital. Visit proHR.com for more information.

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Kristen Harisay
proHR.com
855-200-1016 180
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