Why HR Outsourcing Can Help You to Stay Up to Date with the Latest Changes at the State Level

HR outsourcing

Modern HR functions rely on experts with a plethora of knowledge on many issues and legal regulations. Unfortunately, the laws guiding many aspects of employment can be a confusing patchwork of federal, state, and local regulations. Sometimes, these laws can be incompatible – or even contradictory – leaving those without vast HR experience confused in terms of what the regulations actually require.

Moreover, the laws frequently change at all three levels, meaning that even if you gain a solid understanding of the requirements, they may be subject to change pending the passage of any new legislation. Understanding the dynamics between all of these regulations often requires a great deal of effort and continuous education. Unfortunately, it is often too much for any single person to handle, especially a small company that is attempting to provide in-house HR services with a small team or an individual person.

For instance, the following activities are recommended as ways to develop an in-depth understanding of all legislation, including state-level changes.

  • Attending webinars, conferences, and local chapter events: These events can provide a wealth of information about state and federal changes. Sometimes, they are free, but in many instances, there are costs associated with attending. Even if the event is free, you may be on the hook for travel expenses.
  • Research: Independent research can be a great way to stay ahead of current changes, but it can take a ton of time to determine what the bills actually state. Sometimes, you can find straightforward resources online that can break down a piece of legislation, but you must be sure it is coming from a reputable source. In many instances, the large national organizations that provide the best guidance may not have a lot of information about state-level changes.
  • Read, write, and educate others: While this piece of advice follows the adage that to really understand something, you must not only learn it but also teach it. However, the daily reality for most small and medium-sized business owners doesn’t provide a lot of extra time to pour into creating presentations and speaking to others.

As you can see, many smaller businesses would face substantial barriers in engaging in all of the activities that can help them stay ahead of the curve and ensure they understand state-level changes. There simply isn’t enough time in the day to become an expert at this and complete the other tasks required to manage and grow a company.

Unfortunately, if you don’t understand changes in state regulations, you run the risk of noncompliance. Noncompliance can result in costly fines or even the suspension of your ability to do business, which is the last thing any business owner wants to face.

Fortunately, modern HR outsourcing arrangements provide businesses with an affordable way to ensure that they stay up to date with state-level – and even federal and local-level – changes in legislation. HR outsourcing refers to a business arrangement in which a company hires a third-party HR provider to oversee some or all of its HR functions.

Working with an HR firm can overcome the barriers of limited time and staff. You don’t need to hire additional compliance experts or drown other members of your team (or yourself) in research. Rather, you can work directly with an expert who has already put in the time and effort to understand all the laws that impact your business at the federal, state, and local levels. Additionally, these professionals are expected to maintain their education and stay on top of learning about any upcoming changes to legislation. They can explain the changes to you and oversee your functions to ensure compliance. This surety can bring you peace of mind in knowing you won’t risk penalties for noncompliance.

While many companies have opted out of HR outsourcing due to a widespread belief that it is cost-prohibitive, the reality is that working with these professionals can actually save you money in the bigger picture. First, it ensures compliance, which helps you avoid costly penalties and fees. Additionally, these companies can often provide expert guidance on improving your HR service delivery, which can be linked to greater job satisfaction and lower turnover, both of which are outcomes that can increase your profit margin. And finally, you can request as much or as little assistance as you would like. Whether you opt to outsource your entire HR operations or just one aspect, such as compliance oversight, you can create an arrangement that will work for you and your budget.

To learn more about staying ahead of changes at the state level through HR outsourcing, contact CA HR Services today!

CA HR Services specializes in working with small and medium-sized companies to help develop legal, efficient, and appropriate HR processes and procedures that meet state and federal labor law requirements.