HR Day: Why HR Is The Backbone Of Every Successful Organization

Why Do Organizations Struggle With Internal HR Resources?

Sometimes organizations can struggle to build a strong internal HR department. Some of the more common reasons are:

1. Lack of expertise: Building a strong HR function requires expertise in areas such as recruitment, employee engagement, benefits administration, compliance, and performance management. Companies that lack this expertise may struggle to build a strong HR function on their own.
2. Resource constraints: Building an in-house HR team requires significant resources, including hiring, training, and providing benefits for employees. Small and medium-sized companies, in particular, may not have the resources to invest in building a robust HR function.
3. Time constraints: Building a strong HR function is a time-consuming process that requires a significant investment of time and effort. Companies may not have the luxury of dedicating the necessary time and resources to building their HR function, particularly if they are focused on other core business functions.
    

Why Is A Strong HR Function So Critical For Business?

The role of HR in a company is often overlooked or seen as an administrative function, but statistics show that HR plays a critical role in driving business success. A study by Deloitte found that companies with effective HR practices are three times more likely to be top performers. This is a clear indication that companies that invest in their HR function are more likely to succeed in their industry.

The Society for Human Resource Management (SHRM) also found that organizations with a strong HR function experience 50% higher productivity levels. This is a significant figure, as productivity is a key metric for any business. A strong HR team can help increase productivity levels by identifying areas for improvement, setting clear goals and objectives, and providing employees with the tools and resources they need to succeed. 

Engaged employees are crucial to the success of any business, and effective HR strategies can help achieve this. Gallup discovered that businesses with engaged employees achieve 21% higher profitability. This is because engaged employees are more likely to be productive, innovative, and committed to the success of the company.

In addition to driving profitability, a positive workplace culture is also essential in attracting top talent. A study conducted by Glassdoor revealed that 87% of job seekers consider a positive workplace culture essential when considering job offers. A positive culture is often the result of effective HR strategies, including open communication, employee recognition programs, and a focus on employee well-being.
 

What Is The HR Solution?

Outsourcing HR services provides companies with access to the latest tools and best practices in the industry. Managed services providers invest in the latest technology to streamline their processes and provide their clients with the most efficient solutions. They also have the expertise to implement best practices in recruitment, employee engagement, and compliance.

Here are the benefits of outsourcing HR functions to a managed services provider:

1. Access to expertise and resources: Managed services providers have a team of experienced professionals who are experts in their respective fields. By outsourcing HR functions, companies can access this expertise and resources without the burden of investing in an in-house team.
2. Cost savings: Outsourcing HR functions can provide significant cost savings for companies. Building an in-house HR team requires significant resources, including hiring, training, and providing benefits for employees. Outsourcing eliminates these costs and provides companies with a flexible solution that can adapt to their changing needs.
3. Scalability: As companies grow and their HR needs evolve, outsourcing HR functions can provide a scalable solution that can adapt to their changing needs. Managed services providers have the resources and expertise to scale their services up or down as needed.
4. Compliance: Managed services providers are well-versed in compliance requirements and can help companies navigate complex labor laws and regulations with Employer of Record (EOR) solutions. Outsourcing HR functions can provide companies with peace of mind, knowing that their HR functions are being handled by professionals who understand compliance requirements.
5. Focus on core business functions: Outsourcing HR functions allows companies to focus on their core business functions without getting bogged down in administrative tasks. By outsourcing HR functions, companies can free up their time and resources to focus on strategic initiatives that can help drive business growth and success.
    

Strengthen Your HR Functions With Managed Services From Wide Effect

Outsourcing HR functions to a managed services provider allows companies to access a team of experienced professionals, cost savings, the latest technology and best practices, a competitive advantage in attracting top talent, and peace of mind. Companies that lack the personnel resources to build an in-house HR team should consider outsourcing managed services to find success and guide their organization to future growth. By outsourcing HR functions, companies can access the expertise and resources they need to build a strong HR function without the burden of investing in an in-house team. 

When you partner with Wide Effect, you gain access to over 60 years of experience and HR expertise. Wide Effect offers top-quality staffing solutions and EOR solutions to help your business thrive. Wide Effect provides you with tailored, top-level, reliable talent while providing turnkey back-office solutions to give you an advantage over your competitors and help you reach your business goals. To partner with Wide Effect, call 1-262-298-0026 or fill out the online contact form.