Expanding your business is an exciting prospect. It may represent a goal or even be seen as a sign of your success.
It can also be a costly endeavor. Even if you think you’ve budgeted for everything, you could still encounter some unexpected fees.
You might not think that HR outsourcing could save you money when you expand to the US, but it’s the truth. Sending your HR to an expert team can help you save money in a few different ways.
1. HR Outsourcing Helps You Avoid Penalties
The easiest way to see HR outsourcing’s cost-saving abilities is to look at penalties and fees businesses pay in the US. The IRS estimates the average business pays $845 a year in payroll tax penalties.
What could you do with $845?
One of the reasons businesses incur these penalties is because they’re unfamiliar with the rules. You might be fined for breaking a rule you didn’t even know existed, or assessed a penalty for missing a deadline you weren’t aware of.
HR outsourcing helps you avoid these situations by turning over tasks like payroll and compliance to an expert team. They’re already well-versed in American payroll and US employment law, so they can guide you through these murky waters with ease.
2. It’s a Way Around Infrastructural Red Tape
Have you tried setting up a bank account in the US recently? The process can be quite lengthy and fraught with red tape.
You may consider red tape just an annoyance, but it may actually cost your US expansion much more than you think.
How? What are you running up on wire transfer fees or the exchange rate while you wait for your bank account to be set up? You might also incur payroll penalties if your payments are late or calculated improperly.
Finally, your employees may not be very happy if they’re losing part of their pay to the exchange rate or banking fees.
Teaming up with an HR provider could help you avoid this situation and the extra costs associated with it.
3. Learn about the Labor Market (and Find the Right People)
How else do outsourced HR services affect businesses expanding to the US? They could help you find the right people to staff your US venture.
One of the challenges in hiring American employees may be that you’re unfamiliar with the lay of the land. Are the skilled experts you seek living in Arkansas, or will you have to look elsewhere? Will you have to pay a premium to locate the people you need on your team?
The HR outsourcing expert already has some of this crucial information, and they can steer you in the right direction. With the right information in hand, you could hire the right people for your business sooner.
This can save you plenty of cash in both the short and long term. You might be able to shorten your hiring process and reduce lost productivity. You may also be able to reduce employee turnover by hiring the right people in the first place.
4. Reducing Employee Turnover Long Term
Hiring the right people from the start is one way to reduce employee turnover, but working with an HR provider for your US expansion can reduce employee turnover in other ways too.
One example is benefits administration and other perks. An HR provider may help you offer more to your employees, such as training and development programs or retirement savings plans.
In turn, your employees will be more satisfied with their jobs, and they’ll be more likely to stick around.
5. HR Outsourcing Expands Your Team
Finally, outsourced HR can assist you in expanding your team quickly and in a cost-effective way. If you need advice right now, then talk to the experts about how outsourced HR services could help your US expansion efforts succeed.