There are a number of reasons a business would hire a company of record to help manage back-office support functions. One of these is to free up owners to deal with action items that contribute to company growth. Getting help in managing the stress associated with ensuring that workers are paid correctly and on time, in addition to other activities such as benefits administration, is a service seen as an asset to many entrepreneurs.
However, there is another reason to employ HR outsourcing services, and that is to deal with workers compensation claims. This activity is extremely tedious and time-consuming, but is an essential part of the business process.
For example, the state of Ohio is refunding companies based in the state a $1 billion rebate on premiums associated with workers comp. More than 3,800 public employers and 184,000 are expected to benefit from the proposal offered by Ohio's governor, John Kasich, according to a report from The Columbus Dispatch. This where the value of good record keeping comes into play and hiring an employer of record to deal with workers' comp claims is ideal.
How outsourcing workers comp claims management is beneficial
Workers comp management requires meticulous record-keeping and attention to detail. One reporting error can have serious financial implications for an organization. Here are some of the advantages to hiring a third-party to manage this process offered by Property Casual 360:
- Streamlined communication: An employer of record will be in direct contact with everyone involved in the claims process, including the workers themselves. This data can then be reported back to the business owner to keep him or her updated on the process.
- Faster reporting times: When an employee gets hurt on the job, time is of the essence. An employer of record can quickly gather all of the necessary data and get the process moving along in an efficient manner.
Running a business, particularly with respect to back-office functions, isn't easy. This highlights the value of HR outsourcing services.
