Small businesses outsource HR in many ways and for many reasons, usually varying based on the industry, and the company’s size and needs. Simply stated, there are two ways to outsource HR; outsource it to a third party completely, or hire an HR consultant to train your office manager (or yourself) on maintaining a legally compliant, efficient, and excellent HR function. By outsourcing their HR function, a small business can ensure they are compliant with the law and run their business with peace of mind. Keeping up with the ever-changing requirements is a full-time job in itself, especially at the rate the government changes things (we know)! Many business owners can't tell you what acronyms like ADA, FMLA, EEO, and others mean, let alone how they affect their business. Outsourcing HR allows the business owner to regain their passion, and reconnect to their purpose by focusing on the parts of the business they love; the reason they got into business in the first place!
The Society for Human Resource Management (SHRM) conducted a survey of hundreds of companies and found that 26% of them outsource to save money. But while outsourcing can affect your bottom line positively, it also affects the culture of your business. 23% of businesses outsource to focus on strategy -- handing off the nuts and bolts work to the people who are best at it. Additionally, 22% of companies said they outsource to improve compliance -- because a smart business owner knows the things he or she doesn't know can hurt them!
The top 10 outsourced HR tasks are:
1. Recruiting Assistance
2. Background Checks
3. Workplace Policy Handbooks
4. HR Procedure Implementation
5. Staff Training & Development
6. Management Training & Development
7. Employee Terminations
8. Personnel File Audits
9. Workplace/Employee Surveys
10. HR Compliance Audits & Training
To determine if HR outsourcing will work for you and what firm will work best for you, you need to first figure out what your needs are. Where are your frustrations when it comes to the employment cycle? What tasks would you love to hand off? Then determine their areas of expertise. Can they help you with your needs? Not all HR consultants may have the skill set you seek and need. Next, you need to compare the price of hiring an HR consultant to the return on investment (ROI). Many times, we help businesses become more efficient and create a more accountable workforce which reduces employee issues and typically lowers the amount of overtime needed, i.e. HUGE savings. Not to mention, that businesses are at risk for large fines and lawsuits if they leave themselves exposed. Many times, we see the investment pay off the first week we work with a client by uncovering and correcting unnecessary risk!
The question becomes, Why aren't you outsourcing your HR function?
We invite you to check out our 12-month outsourcing packages here, but we also have an "al a carte" option as well. As always you can email us with questions at [email protected].