The Biggest Trends in HR Outsourcing
For some, HR compliance can feel overwhelming. Filing deadlines, consequences and penalties make this topic one that not many HR professionals are fond of. Outsourcing HR compliance can make these responsibilities achievable with the peace of mind that they are being done right. If you’re looking to freshen up your HR outsourcing practices in 2023, be aware of the latest HR outsourcing trends that we’ve taken the time to identify below.
Top Trends in HR Outsourcing for 2024
In 2020, 42% of the U.S. workforce became full-time remote work employees. Most firms have kept the new work-from-home policies or offer partial telecommuting options. This can be a complex headache for smaller HR teams to manage, hence why many are opting to outsource HR to an outside agency to manage.
Before it’s time to hand over the keys to an HR outsourcing company, it’s critical to understand the top HR outsourcing trends for 2024 and beyond. At a high level, these trends include:
- 1. Benefits administration
- 2. Support systems
- 3. Payroll
- 4. Compliance
- 5. Diversity, Equity, and Inclusion Focus
- 6. AI Powered Solutions
This list might not be groundbreaking to see, but to those who work in HR these are the tasks that are the foundational rock for their department. If these four pillars are not working cohesively at all times, HR professionals will not be able function at their highest level and produce the desired results that CEOs and CFOs are looking to achieve.
Spring Cleaning Your HR Outsourcing Processes
There is no doubt that outsourcing is a reasonable solution for relieving an HR team of necessary, but time-consuming tasks. Whether your company doesn’t have the staff, is short on time, is non-compliant, or has limited funds, HR compliance outsourcing may be just be the thing you need!
To succeed as a growing business requires leading and accelerating digital transformations to sustain business operations in the future. This requires your company to do a little spring cleaning on its HR outsourcing processes to begin prioritizing what will create value for your organization. To do this, consider following this list of priorities to allow your HR team to flourish:
- 1. Check in with recruitment and marketing benefits
- 2. Check in with recruitment and marketing teams
- 3. Review temporary & seasonal employees
- 4. Review I-9 Forms & sexual harassment training
Notice how these four priorities match exactly with the top four trends for HR outsourcing that were outlined in the previous heading.
Following this outline will help you streamline the spring cleaning of your most important HR processes to ensure organizational success. Let’s dive deeper to identify the true value of these four key priorities.
[Benefits Administration] Benefits Audits
Audits are important to employers for several reasons. They can help improve processes that may be out of date. With regards to HR activities, audits are necessary due to the interaction with the public (i.e. potential applicants, current employees or current or potential clients).
Two of the more popular benefits audits are Dependent Eligibility Audits and Claims Audits; both are typically conducted to drive longer-term health plan objectives as well as to receive immediate, short term returns or a one-time recovery of funds. By making use of these periodic audits, businesses can more easily control the rising costs of employee benefits, while protecting the program from purposeful fraud or accidental waste.
[Support Systems] Checking In With Recruitment and Marketing Teams
Each team has their own goals and it’s important that there are support systems and frequent check-ins in place to help those goals become realized. Marketers seek to attract customers to a service or product and recruiters seek to attract talent to a role. Both teams however overlap in the way that they both work toward promoting the company brand using marketing tactics.
Finding great candidates and convincing them to join your team is key to the growth and success of a company. Since the Covid-19 pandemic hit, meeting candidates in person may be more of a challenge, especially as more employees are looking for jobs that allow them to work remotely. This is why it’s even more important that ever to step up your recruiter marketing strategies to attract qualified talent.
[Payroll] Reviewing Temporary & Seasonal Employees
It’s true that most companies these days either hire temporary and/or seasonal employees to fulfill short-term demand increases. If your company is tremendously seasonal and sees increased demand during the Summer and Winter, Spring is typically the best time to approach reviewing the past calendar year’s temporary and seasonal hires and charting a course of action for the current calendar year.
Seasonal workers who know they’re valued and had a fulfilling experience with the company are more likely to return. To ensure a smooth transition between seasons for any type of temporary employee, it’s key to review their contracts on the cusp of the next season change. Spring is a good time to conduct a performance evaluation for these employees to ensure they know that their hard work is recognized and if you’d like them to come back next year or season.
[Compliance] Reviewing I-9 Forms & Sexual Harassment Training
According to the Immigration Control and Reform Act of 1986, employers may only hire persons legally eligible to work in the United States (including citizens and nationals of the U.S., and aliens authorized to work in the U.S.). The employer must verify the identity and employment eligibility of anyone being hired, which includes completing the Employment Eligibility Verification Form (I-9).
Employers who get audited by the U.S. Immigration and Customs Enforcement (ICE) and show that they are in violation of the I-9 form eligibility requirements can be fined between $2,000 and $10,000 for each violation. Additionally, both state and federal law impose fines and penalties for failing to comply with other worker authorization requirements. This doesn’t need to be your company’s reality though as long as you take the time to review your I-9 forms every Spring.
For California-based companies, HR teams must also focus on following all requirements laid out by Compliance Bill SB 1343 (which overtook AB 1825 in 2018). This bill relates to the configuration of sexual harassment training programs which were covered in this recent Finvisor article. Employers who do not comply with sexual harassment prevention training regulations are putting themselves at risk of a pricey lawsuit.
The Importance of HR Training Enrichment Programs
To foster engagement in your organization, it’s important to provide activities and benefits that employees find to be enriching. Just as a company has a business plan and a marketing strategy, those who succeed at employee engagement are those who have carefully thought out a program to foster employee enrichment. For this plan to be beneficial, all levels of management need to be on the same page and working towards the same enrichment goals.
An employee enrichment program should include consistent methods of demonstrating that employees and the work that they do are valued. Even on a startup budget, your company should be able to reward and recognize your employees’ value as both a person and employee. By using an HR outsourcing solution, your internal team can focus on creating transparency and trust within your cohesive company culture which demonstrates a refreshing sense of authenticity to your employees.
Securing Passwords to Maintain Compliance
Being at the center of an HR crisis is an enormous and weighty responsibility for any HR department. Making sure that your HR team never has to experience a data breach crisis is something that you should be putting into practice on a daily basis even if you’re outsourcing your HR compliance to another firm.
With World Password Day on May 2nd, 2024, it’s a good reminder for HR professionals to review their internal passwords. Passwords are critical gatekeepers to keeping the digital identities of the candidates that your HR team converses with from falling into the wrong hands. This year, take the World Password Day pledge and put these critical tips into motion in your organization:
- change an old password to a long, strong one
- turn on two-factor authentication for your important accounts
- password protect your wireless router
- log off when you’re done with a program
- periodically remove temporary internet files
To remove your startup from the risk of legal trouble from a compliance mishap stemming from a data breach, it’s best for companies that have overwhelmed HR departments to delegate some of the most important tasks to a qualified HR outsourcing company.
Returning to Work After COVID-19
Returning to work after COVID-19 has been a complex challenge for HR teams. With vaccination campaigns in full swing, companies are navigating the transition to in-person work, remote, or hybrid setups. HR departments are responsible for implementing safety protocols, managing vaccination policies, and addressing employee concerns about health and well-being. They’re also facilitating the flexible work arrangements that employees have come to expect, while also ensuring productivity and engagement.
Additionally, HR teams are focusing on mental health support and diversity, equity, and inclusion initiatives to foster a more resilient, inclusive workplace in the post-pandemic era. Adapting to the evolving needs of the workforce and ensuring a smooth and safe transition are key priorities for HR in this ongoing phase of pandemic recovery.
A hybrid workforce model can accommodate your team’s ability to work more strategically at all times. When employees need to work autonomously to meet deadlines, they can do so without added distractions. If teams need to come together to collaborate, a hybrid workforce model would allow teams to have the flexibility to bring new ideas to the table while developing the social and emotional connections that are vital to forward progress.
What are the key benefits of outsourcing HR functions?
Should small companies outsource human resources?
Conclusion
Outsourcing HR in 2024 proves to be dynamic and ever evolving. To stay competitive its importnat to take these trends into consideration when looking for the right fit to outsource your HR department.Â
*This blog does not constitute solicitation or provision of legal advice and does not establish an attorney-client relationship. This blog should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction.*
- Last Modified
- May 16, 2024
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