It’s no secret that HR is much more than hiring and payroll. Today’s HR departments handle everything from training and development to compliance monitoring and more.

It’s probably the reason businesses of all sizes find managing HR effectively more challenging than ever. Despite this, some people are still reluctant to get the help they need. Instead, they try to manage HR themselves, alongside everything else they’re doing.

This approach isn’t without its risks. What happens if you decide not to outsource HR? You may find yourself facing some of these challenges.

You Fall Behind on Key HR Tasks

Did you know the average small business pays nearly $850 in payroll penalties to the IRS every year? The situation is similar in Canada, where the CRA can fine companies for mistakes on payroll remittances.

Most businesses pay these penalties for the simple act of being late sending their payments or reports. If you’ve ever struggled with payroll, then you know how difficult it can be to stay on top of it.

You might fall behind on other key HR tasks as well. Compliance is a major one. Compliance monitoring is an enormous, ongoing task for most businesses, no matter what their size. As a result, you may face penalties and fines for noncompliance with any number of laws.

Accidents Do Happen

You may also pay penalties for honest mistakes. If you’re operating in a new market, you may not be familiar with the rules. This is especially true in places like Canada and the United States, where you have to learn not one but three sets of rules.

Unless your team consists almost entirely of HR specialists, you’ll likely run across some rules haven’t encountered yet. While this might be a simple case of being unaware, it’s still an error that you’ll pay for.

You can make mistakes in almost any arena. You might ask a job candidate a discriminatory question in an interview, or you may calculate overtime pay incorrectly. Maybe you’re not carrying the right insurance for the size of your business or your industry.

Outsourcing could help you overcome these sorts of challenges by providing you with the expertise you need.

You Can’t Support Employees

Outsourcing your HR has another major advantage for your business. It allows you to support your employees.

If you keep everything in house, you and your HR team could feel overwhelmed in time. You might make mistakes on payroll or you may decide not to administer a benefits program because it takes too much work. If you’re expanding to a new location, you may not be aware of the kinds of benefits your employees want most.

An in-house HR team might not have the time or expertise to provide training and development programs. This is often true for those employees in satellite offices. You may not be able to find someone to run the program, or you aren’t sure how to tailor the program to employee needs in different markets.

This lack of support can lead to employee disengagement. That, in turn, results in a higher turnover rate, which costs you more in the long run.

You May Face a Lawsuit

Unhappy employees might decide to sue you, especially if they feel you’ve violated employment law. A job candidate may launch a suit over a discriminatory hiring practice. A disabled candidate could sue over a lack of accommodation.

If you don’t handle termination according to the local line, you might also find yourself headed to court. Any number of other issues could crop up as well.

Outsourcing can help you take preemptive action to avoid these consequences. By working with a team of experts, you can ensure your HR practices are always best practices.