When deciding to outsource to a professional employer organization (PEO), it’s common for business owners to feel nervous about sharing the news with their HR Manager. While it’s typical for the HR Manager’s initial reaction to include feelings of being overlooked, or anxiety that they won’t be needed anymore, the truth is that outsourcing HR to a PEO can actually help your HR Manager in some major ways and set them up for even greater success in the future.
More Time to Focus on Strategic HR Initiatives
When a PEO takes on the repetitive day-to-day administrative tasks it frees up your HR Manager to dedicate more time to developing their HR strategy. The chances are that your HR Manager spent a lot of time and effort learning about HR and getting various certifications. Once a PEO takes on the time-consuming tasks of payroll or benefits administration, the HR Manager can use their expert knowledge to focus on big picture things like company culture, and leadership and employee development.
Drive Better Employee Engagement
Per Gallup, only 33% of U.S. employees are engaged in their job. This is a huge risk to employers and HR Managers because the less connected employees feel to an organization the more likely they are to leave. And a high turnover rate is not only exhausting but also costly. When a HR Manager is supported by a PEO they can better position themselves to spearhead the drive towards increasing employee engagement. An increase in employee engagement means happier more dedicated employees, and ultimately better business outcomes.
Consolidated Vendor List
Before making the official decision to outsource to a PEO, your company was probably already outsourcing a lot of its HR functions to various vendors for things like:
- Payroll company or software
- Pre-employment screening services
- Workers’ Comp carrier
- Retirement plan provider
- Health insurance provider
- Ancillary benefit provider
By enlisting a PEO like Scale, your HR Manager will no longer have to worry about working with a ton of different contacts spread across multiple companies. Rather, they can rely on the PEO’s team of professional advisors and experts to quickly and accurately assist as needed.
Ultimately, one of the most important things you can do is just be open and honest with your HR Manager. Explain why you are enlisting the help of a PEO, address any questions or concerns they may have, and let them know how this change can positively affect them.