How Remote HR Helps Businesses Counter Inflation

Why Are Costs Increasing?

Inflation is generally defined as decreasing currency value and/or increasing prices over a period of time. While traditional schools of thought suggest that prices go up when there is too much money in circulation chasing too few goods, modern economists distinguish monetary expansion from the actual decline in purchasing power since supply/labor shortages, lower interest rates, and consumer confidence can also contribute to rising prices.

Throughout 2020 and 2021, a whirlwind of these economic factors generated strong inflationary triggers following the coronavirus outbreak and the U.S. government’s response to the pandemic. The problems began once worldwide lockdowns prevented people from working, thus limiting the production of goods and services needed to keep the economy functioning.

At the same time, the government’s financial institutions engaged in quantitative easing and public spending programs to combat COVID’s effect on the economy, including but not limited to stimulus checks, direct business loans, and vaccine production. With production shrinking and the money supply growing, businesses like yours soon dealt with both a deadly virus and runaway inflation.

Protecting Your Business From Inflation

Regardless of the economics, you need solutions to manage how inflation affects your employees now.

As the cost of living rises, workers expect higher incomes to maintain their lifestyles. The market is already seeing annual salary increases between 3-5% on average, which isn’t enough to keep pace with inflation despite being well above normal fluctuations.

For businesses hit by inflation the hardest, especially those in industries connected to supply chain issues, this impact on payroll costs can devastate your ability to attract or keep talent. Not every business can raise salaries overnight to meet this new demand without making adjustments.

Fortunately, remote HR is a great option for companies looking to cut costs and reinvest savings into their workers.

What Is HR Outsourcing, and Why Does Your Business Need it?

HR outsourcing offloads HR tasks onto a third-party organization that handles HR responsibilities remotely for multiple companies. Companies can outsource individual HR tasks to a remote HR team, like billing and hour tracking, or offload their entire HR needs.

Read More: Everything You Need to Know About HR Outsourcing

Remote HR is a great option for small to medium-sized companies that may not have the revenue to hire full-time HR employees, or whose resources may be better spent countering the skyrocketing costs of living with more competitive wages and benefits.

If you outsource your HR department to a remote HR team, you can expect to beat inflation with:

Lower HR Costs

Outsourcing your HR department is an efficient way to find huge savings—and every dollar counts when it takes around 10% more funds to purchase the same goods and services. Instead of paying salaries, taxes, and benefits for in-house staff, the remote HR model allows you to offload those costs onto a third party while maintaining all the necessary human resource capabilities. Best of all, you can optimize which services you want to be outsourced for maximum efficiency.

Better Benefits

With an experienced remote HR team, not only will you create the financial breathing room you need to ensure your workers aren’t falling behind, but you’ll unlock new ways to improve total compensation. In addition to saving on HR costs, one of the most exciting perks of remote HR solutions is their attractive benefits packages. Through their more extensive networks, HR outsourcing teams can often offer better deals on health and dental insurance, retirement plans, tuition reimbursement, and more. Upgrading your benefits can be a creative way to augment salary increases and keep workers happy.

Superior HR Services

If you can only afford to employ a few HR workers—if any—a remote HR solution may provide a much higher level of service. Remote HR can strengthen your business with offerings you wouldn’t have the time or money to procure on your own, like onboarding and training, continuing education, and regulatory compliance. These benefits will contribute to overall morale and boost professionalism, which is equally important to adequate wages.

Upgrading your HR capabilities is the best way to ensure your business remains an attractive place to work throughout the current inflationary cycle by delivering the standard of living and work environment top talent expects.

Nexus HR Helps Businesses Beat Inflation

Nexus HR is a leading remote HR provider for businesses like yours. From payroll administration to hiring and onboarding, you can trust Nexus HR to handle all of your HR needs at a fraction of the price of an in-house HR team. Speak with our representatives today to learn how businesses are taking their teams to new heights with Nexus HR despite high inflation.