Qualified employees are the most valuable asset of any manufacturing facility. In 2023, the manufacturing industry will employ more than 11 million people in the USA. Ensuring smooth recruitment, onboarding, and retention is critical to achieving set goals and retaining talent. 

While the importance of effective HR task management in the manufacturing industry is increasing, many employers still rely on their staff to handle HR tasks. By trying to save money on hiring a large HR team, these organizations may lose talent, pay fines, and face lawsuits. 

Let's look closer at addressing these HR issues and ensuring high manufacturing employee satisfaction and productivity.   

How HR Outsourcing Benefits Manufacturing Facilities  

Not all manufacturing facilities have the resources to hire a sizable HR department. Meanwhile, the mounting HR tasks can overwhelm internal staff and affect facility operations. 

By outsourcing HR to a dedicated service provider, you don't just take the increasing burden off your employees' shoulders. You gain an opportunity to streamline operations, boost retention, and improve the company's bottom line. 

The main benefits of HR outsourcing for manufacturing facilities include the following: 

• A large team of experts –HR service providers, such as professional employer organizations (PEOs), have large teams of experts specializing in different HR niches. This partnership allows you to delegate each pressing HR task to a fitting specialist. 
• Cost-savings – working with an HR service provider is much less financially taxing than developing a large in-house IT team because it enables your existing staff to achieve more. This partnership allows you to prevent error-related fines and limit workers' comp claims. 

• Compliance – the ever-changing employment legislation can be hard to follow, which may incur fines and significant reputational damage. Compliance experts from a PEO can ensure your facility stays current with federal and local labor laws. 
• Higher efficiency – when a dedicated HR service provider handles your HR tasks, the rest of your staff can focus on revenue-generating activities. 
• Employee retention – employees who receive top-notch HR services are likelier to stay with your manufacturing facility. Satisfied employees are also likely to become your recruitment ambassadors. 
• Better tech – PEOs often provide access to high-quality HR software that helps streamline your business functions while saving you time and money on various tasks. Buying such software yourself can take up too many of the company's resources. 

Overall, robust HR services can be highly beneficial for a manufacturing facility. Outsourcing HR can be an excellent way to enjoy the above benefits if you don't have the resources to hire a sizeable internal HR team. 

What PEOs Can Handle for You  

A professional employer organization is the most efficient outsourcing partner for manufacturing facilities. A PEO can handle various tasks to streamline your facility operation, improve retention, and save the company money. 

• Payroll processing – according to a recent survey, 49% of business owners find payroll processing frustrating. A PEO takes over all payroll-related tasks, including payroll tax processing, filing, and payment. They usually take advantage of robust payroll software that minimizes errors. 

• Benefits administration – PEOs use economies of scale to give your employees access to Fortune 500–level benefits. The HR partner handles employee enrollment and processes claims. 
• Compliance – PEOs hire compliance experts who stay up to date with the local federal and local laws to ensure full compliance with tax regulations, reporting requirements, workers' comp, and more. By sharing regulatory knowledge with your company, PEOs can help prevent non-compliance. 

• Safe workplace – PEOs can arrange ongoing safety training and audits to ensure a safe work environment and avoid unnecessary workers' comp claims. 
• Onboarding – PEOs can help set up processes for smooth boarding to save your company time and money on bringing in new employees. 

Overall, PEOs take on various HR tasks while leaving the control in your hands. Your employees can focus on their primary tasks while your HR experts gain time for making important decisions. 

Reduce Turnover by Supporting Your Staff  

In the manufacturing industry, jobs aren't easy to fill. According to Deloitte, finding the right talent is becoming harder and harder every year. That's why keeping the existing talent in place is critical to maintaining high-quality facility operations. 

By giving you access to better benefits, streamlining workplace safety, and improving payroll processing, PEOs can help you overcome high turnover rates. 

Lower turnover keeps valuable knowledge and skills within your facility. They also contribute to lower accident rates and higher productivity since the existing staff better understands how your facility works than new hires do. 

Leveraging HR Outsourcing for Your Manufacturing Facility  

HR outsourcing is an excellent solution for manufacturing facilities that want to reduce turnover, improve productivity, boost employee engagement, and enhance the workplace environment. 

Amidst The Great Resignation, when the number of manufacturing specialists is declining, the right approach to HR can set you apart from the competition and turn you into the employer of choice.