<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >5 Things You Need to Know Before Hiring an HR Outsourcing Company</span>

Have you been thinking about hiring an HR outsourcing company to help with your international expansion? It’s a smart move for many business owners. It can save you time, legal headaches, and money.

Before you sign on the dotted line, though, there are a few things you need to know about hiring an HR outsourcing company.


1. Ask If They Provide Benefits

One of the first things you should ask any HR outsourcing company is if they provide benefits. Chances are you’ll be outsourcing your payroll, since payroll is one of the most time-intensive and complex tasks your HR team could face.


Benefits often integrate with payroll, so it sometimes makes sense to combine the two. If your HR outsourcing company can handle both, you’ll have an easier time with administration of both services.


If you’re a small company, you may even want to ask if your outsourcing partner provides any benefits of their own. Some companies will offer solutions for retirement savings or healthcare, while others don’t.


2. Who Is the Employer?

The next question you want to be sure to ask is who will be the employer of your employees. This is an important question, because it informs liability.


Employers of record, or EORs, are outsourcing companies who will take on the role of employer. As a result, your liability is usually more limited than if you work with an HR consultant or a payroll provider alone.


A professional employer organization, or PEO, will also limit your liability. They act as co-employers, though, so you’ll still be responsible for your employees.


3. How Long Have They Been in Business?

You should ask any HR outsourcing company how long they’ve been in business, and how long they’ve been providing services for clients. Some companies were founded some time ago, but have only recently transitioned to providing HR services. Others have been around the block.


Experience is key in the HR world. While you want to work with a team who are up-to-date with legislation and HR best practices, expertise and knowledge are developed over time. A company that’s been successfully serving their clients for months or years is a better bet than one that just started up a week ago.


4. How Are Workers’ Compensation Claims Handled?

Another key question to ask of any HR outsourcing company has to do with workers’ compensation claims. Some companies will handle both the insurance and the claims. Other partners may leave you to handle claims on your own. Still others might not be able to provide anything in the way of workers’ compensation insurance.


If you’re looking to outsource HR, you want to be sure you’re working with a company that can help you navigate these murky waters. You may not have any workers’ compensation claims right now, but you could have some in the future. You might also be unfamiliar with how workers’ comp works in an international market, so a partner with expertise can protect your business.


5. Ask to See the Fee Structure

Before you sign a contract, ask the HR outsourcing company to see a breakdown of all their fees. They should be able to provide this.


Be sure to read the fine print, and always question fees that don’t make sense. Some companies try to hide “extra” fees in their structures, while others will nickel and dime you for seemingly every service.


Another common tactic is to bill for extra services that are actually essential, or to charge for services you don’t need and won’t use. A clear fee structure will show you exactly what you’re paying for.

Taking the time to get answers to these questions will help you find the right HR outsourcing company to build a successful partnership with.