Full-Service HR

Eliminate These 5 Human Resources Tasks by Outsourcing

Ella Baker
Eliminate These 5 Human Resources Tasks by Outsourcing
Reading time 6 Mins
Published on May 10
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Create more efficiency and get more done by outsourcing these 5 tasks

Outsourcing some or all of your company’s human resources tasks allows you to focus on the daily management and growth of your business. In addition to keeping your company compliant, outsourcing HR can alleviate your administrative load so you have more time for other duties. Of the many options available to companies, Professional Employment Organizations (PEOs) like Sheakley provide the most comprehensive set of solutions for your business.

Recruitment and Termination

It’s a task that might seem easy at first glance, but your hiring and termination practices are more fraught with potential liabilities and time-consuming than you may think. With the US Equal Employment Opportunity Commission (EEOC) receiving 84,234 charges of workplace discrimination charges in 2017 alone and with the average cost of an employee lawsuit standing at $250,000, it has never been more important to make sure that you have a strong HR outsourcing partner who can adequately administer your hiring and termination processes.

The hiring process involves far more than posting a job, waiting for candidates to apply, and selecting someone to fill the role. From issues with how the job is described or where its posted, finding and obtaining the right talent for your company can be more difficult than you think. Lost time looking through resumes from candidates that aren’t a good fit and posting to dozens of job boards means lost productivity for your office. Then there are the liability issues related to not establishing and using appropriate equal employment opportunity hiring practices.

Then there are terminations. While Ohio is an at-will employment state, employers must still be aware of the issues that can come into play when terminating an employee. From proper wording of termination notices to severance practices to handling unemployment claims, termination is a delicate process that must be handled with care and delicacy to avoid potential litigation.

Sheakley’s human resources outsourcing experts will be able to help you navigate all of these potential pitfalls to reduce potential liability for your company and to help you attract and retain the right talent. Sheakley works with you and your managers to ensure adherence to proper employment practices that can ensure you avoid turnover and lawsuits.

Background Checks and Drug Screening

After many valuable hours spent on the interview process, every employer wants peace of mind and reassurances that they are making the right choice when selecting a new employee to join their team. Pre-employment background checks and drug screenings are valuable tools in every employers’ toolkit, but the implementation of these can prove too time consuming for many employers. The democratic and equal application of both are extremely important to ensure that your business remains compliant with labor laws. Allowing your HR outsourcing partner to take on these tasks can be the right choice for many small and mid-size employers.

Beyond the cost savings offered by the Ohio BWC on policy premiums, ensuring that you establish a drug-free workplace can protect your business against lost productivity, as well as absenteeism and tardiness in the workplace. With the Ohio BWC reporting that 77% of illicit drug users and 90% of alcoholics are actively employed, the threat of injury and loss of quality that such use brings to employers is substantial. The Small Business Association report that drug and alcohol users cost employers an average of $7,000 to $25,000 per year.

Additionally, background checks ensure that the gaps left in your knowledge about an interviewee are filled before you make an offer. With a recent Hireright report stating that 85% of job applicants state at least one falsehood on their resume, spending some time looking at your potential employees’ backgrounds is a necessity. From consumer finance reports to criminal history and education verification to employment verification, pre-employment background checks give you the peace of mind that your employees have the experience and skills they claim.

Payroll and Payroll Tax

Payroll is one of the most important tasks that a small or mid-size business can outsource. Owners and manager spend an average of 6 to 10 hours per week on payroll processing. In addition to taking time away from other valuable tasks in your company, payroll processing and payroll tax can be costly in other ways. Frequent changes in the tax code can result in high penalties and stiff fines resulting from incorrect withholdings and reporting.

Sheakley’s Human Capital Management application comes complete with Payroll Processing Services, Time and Labor Management, Employee Onboarding tools, ACA Management and online Benefits Enrollment. This complete payroll administration solution offers everything from basic payroll processing to electronic tax filing, while helping you manage costs and stay compliant.

Since a PEO acts as a co-employer, Sheakley’s team will ensure that each employee is paying the appropriate payroll taxes to the appropriate entities at the appropriate time. The Human Capital Management system allows employers and employees to access and update employee information at anytime from anywhere. W-2s are automatically available to employees at the end of the year and employees can access up-to-date PTO accruals at any time.

Employee Handbook

The importance of a comprehensive employee handbook cannot be underestimated. In addition to laying the foundation of policies and procedures that can help resolve disputes before they arise, a well-developed employee handbook protects both you and your employees.

Your employee handbook gives your employees a clear roadmap of your company’s culture and lays out exactly what is expected from them, covering everything from timekeeping requirements, advises employees of their entitlements, lays out dress code, and code of conduct, among many others.

Sheakley’s knowledgeable PEO team can help develop an employee handbook can also help protect you in case of a lawsuit or complaint from current or former employees and ensures that your employees understand the expectations the company has of them.

Employee Benefits Administration

Professional employment organizations utilize the collective bargaining power of the 3.4 million employees they represent to negotiate Fortune 500 level benefits for small and mid-size companies. The costs associated with offering health insurance, dental and vision benefits, life insurance, and retirement benefits are prohibitive for many business owners.

With a growing number of employees viewing healthcare benefits as standard, the importance of providing these coverages is becoming increasingly more important in attracting and retaining top talent. By entering into a PEO co-employment arrangement with Sheakley, you can provide your employees with affordable, high quality benefits.

In addition, Sheakley’s PEO team administers your benefits plan. Sheakley makes is our business to ensure that your employees are informed of the benefits available to them, reducing your benefits costs, and keeping your company compliant with government health care laws.

Explore the many other benefits of working with Sheakley

Learn more about Sheakley’s Human Resources Outsourcing Solutions and contact us for your free consultation today. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join in the discussion by commenting below.

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