6 Reasons to Outsource HR for Financial Services Firms

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For financial services firms, HR outsourcing can be a great choice. That’s especially true for small to mid-sized firms, including financial planners, venture capital and private equity firms and alternative asset managers, along with other similar types of organizations.  These kinds of organizations often don’t have enough employees to justify hiring a dedicated financial services HR person. As such, financial services firms can see big benefits from outsourcing their HR needs.  By outsourcing to a professional employer organization (PEO), small and mid-sized financial services firms can have the support they need, and enjoy peace of mind.

Financial Services HR Outsourcing Improves Efficiency and Streamlines Processes

By outsourcing financial services HR, a small or mid-sized firm can see improved efficiency and streamlined HR processes. This frees up resources for other areas that need attention and reduces the chances of errors and omissions in the HR space. 

With PEOs like Aspen HR, you can outsource payroll, benefits administration, and other functions that would traditionally be handled by an HR department in a larger organization. Having centralized HR functions means your firm has all these functions handled by one team, with one single point of contact – rather than multiple individuals – with no worry that something is getting lost in the shuffle.

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Financial Services HR Outsourcing Enhances Compliance and Risk Management

Managing regulatory compliance and mitigating risk is extremely important for a financial services firm. With outsourced HR, financial services firms gain increased peace of mind and security.  The PEO ensures its client’s policies and procedures are in line with current employment laws and confirms that the firm is handling its employment tax obligations correctly. PEO’s like Aspen HR can also make sure your employees receive appropriate HR training and handle other regulatory requirements, as well. 

Reducing risk and limiting the potential for non-compliance penalties helps financial services firms operate with more confidence. It also lowers the chance that the company may be hit with fines or costly lawsuits, which could hurt the company’s ability to grow and succeed in the longer term.

Financial Services HR Outsourcing Provides Access to HR Expertise and Support

Not every financial services firm feels confident when it comes to HR. By outsourcing this function, a firm has access to HR support and expertise that can help them make the best choices for their company.  

Working with certified HR pros like those at Aspen HR makes it easier for a financial services firm to stay abreast of new developments in the field of human resources. It also helps the firm remain competitive when it comes to compensation and benefits packages. 

Financial Services HR Outsourcing Saves Money and Improves Financial Performance

There are significant cost savings for small and mid-sized financial services firms that outsource their HR. These firms may also see improved financial performance due to the cost savings and the reduction in penalty risk. 

Having an in-house HR department can be expensive, and the cost of this department is often more than what a smaller firm can accommodate. With that in mind, outsourcing HR reduces overhead, allowing these funds to be used elsewhere.

Reducing costs without sacrificing expertise or quality can help a smaller firm stay competitive, and outsourcing HR is one of the ways to do that. The right PEO can make a difference for any firm that’s trying to save money while remaining successful and compliant.

Financial Services HR Outsourcing Allows Your Team to Focus on Core Business Functions

When a financial services firm doesn’t have to worry about HR, the team can shift its focus to other areas of the business. Core functions like sales and client relations can be expanded, and there are more opportunities for employee training, long-range planning, and growth. 

While larger financial services firms may have the space, budget, and personnel for all of these areas of focus plus HR, that’s not realistic for smaller firms. Often, these firms have to choose what to focus on at the expense of other areas. Outsourcing HR helps them shift their focus without taking anything away from what’s needed in the HR department.

Financial Services HR Outsourcing Enhances Employee Satisfaction

Happy, satisfied employees are generally more productive employees.  While your firm may have struggled to find affordable benefits for employees in the past, a PEO can leverage its expertise and resources to put together a custom benefits package that meets or exceeds your expectations.  And with outsourced HR, you have a dedicated professional to handle benefits administration and answer questions so you can focus on other tasks.

And don’t underestimate the importance of employee retention.  In today’s competitive employment climate, having a top-notch benefits package is more important than ever when it comes to convincing employees to stay.   Employee retention lowers costs and helps build a quality team that works well together and provides quality results for clients. 

Aspen HR Provides Expert Financial Services HR Outsourcing

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Human Resources functions are vital for financial services firms. Because these functions are so important to the growth and success of firms like yours, you must make sure they are handled properly.  Working with a PEO makes it easier for any firm to satisfy their HR needs and keep their employees happy at the same time.
Ready to help your small or mid-sized financial services firm handle its HR more efficiently? Contact Aspen HR to learn more about our HR outsourcing for the financial services industry and how we can help your organization.

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