6 Ways HR Outsourcing Responds to Small and Middle Market Business Needs

Small and middle market businesses across diverse industries are turning to Human Resources (HR) outsourcing to help address their challenges. Here is our list of the top 6 benefits businesses receive by outsourcing their HR.

  1. The ability to offer a wider selection of employee benefits (i.e., medical insurance, dental and vision coverage, flexible spending accounts, health reimbursement accounts, health savings accounts, and various other insurance plans) which enable employees to select the benefits that best meet their needs.
  2. The ability to benefit from their HR outsourcing resources’ greater economies of scale when it comes to their employee benefits.
  3. The ability to better recruit and retain employees as a result of their improved benefit packages.
  4. The ability to improve employer-employee relations through the provision of other valuable employee services and “perks” such as: Employee Assistance Programs (EAPs), college tuition savings and scholarships, adoption assistance, wellness programs, and shopping, travel and entertainment discounts.
  5. The implementation of sound risk management and regulatory compliance.
  6. Peace of mind in knowing that the complex area of employee services from payroll preparation and reporting to tax filings, to benefits administration and employment law compliance are all being properly handled by experienced HR professionals.

As more businesses across diverse industries gravitate toward an HR outsourcing relationship, the Professional Employer Organization (PEO) industry of which Alcott HR Group is a member continues to grow. There are currently an estimated 700 PEOs in the United States, serving approximately three million American workers and generate approximately $51 billion in annual gross revenues.


On March 10th, 2011, posted in: PEO Knowledgebase, Small Business Tips by
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