These three reasons for outsourcing your Human Resources department may be simple, but the writing on the wall is clear: outsourced HR is the best option for many businesses, but it’s especially important for a business that’s just starting out. When your business is in its beginning stages, you’re setting the tone for a company culture that will last for years to come. If you want a great reputation among job-seekers and peers, outsourcing your Human Resourcing and Recruiting is the way to go. Here are three reasons why small businesses should always outsource their HR departments.
3. Managing HR Problems Takes Time
As a small business owner, you know the saying is true: time is money. If you find yourself spending most of your time sorting employee conflicts, writing handbooks, hiring new talent, or panicking about liability issues, you have two options. You can either let your time be swallowed by handling convoluted HR tasks, or you can call HR-Rethought and get back to focusing on the revenue-generating side of your business while we manage the people side.
Whichever outsourced HR company you end up choosing, make sure their services are customizable and comprehensive. No matter what issues your business is facing, if your outsourced agent has a good understanding of your company, their experience will help them find solutions faster than any business owner or manager could. If you want to save time — both yours and your employees’ — hire an outsourced expert.
2. Outsourced HR is the Cheaper Option (!!!)
I know, I know: How on Earth could hiring an HR team save me money? But the truth is, it absolutely does! Not only does it eliminate the risk of costly HR blunders, but outsourced teams are also cheaper than hiring an in-house Human Resources leader (think of the compensation and benefits costs you could save!). And, if the cost of hiring a single HR leader is significantly more expensive than taking the outsourced route, imagine hiring an entire in-house team. On the flipside, with an outsourced agency the experience of a full team of experts is automatically at your disposal.
So, yes, you’re spending money on the outsourced agency itself, but you’re also earning more revenue by dedicating more time to your business and saving both the real cost of hiring your own HR expert and the potential cost of an HR nightmare. The overall effect is a healthier bottom line and a smoother-flowing Human Resources department.
4. You Don’t Know What You Don’t Know
Liability can be a scary word to small business owners — though it’s probably not as scary as compliance. You simply can’t learn everything you need to know about Human Resources by doing Google research. When outsourced HR is cheaper than in-house and saves you money, there’s simply no point in risking a Human Resources disaster by assigning important tasks like payroll or employee relations to your managers. When mistakes could result in company-crippling lawsuits or IRS run-ins, it’s always best to leave it to the experts.
Small business simply can’t invest substantial resources into creating a perfect Human Resources department. But, when you outsource your HR responsibilities, you gain the help of a team of HR experts who can write your handbooks, create competitive benefits plans, implement HR technology, and handle your recruiting, all for cheaper than you’d get it in-house.
Some business owners are afraid of outsourcing HR, and for good reason: if you hire the wrong company, you could end up right back where you started. Always search for a company like HR-Rethought, whose plans are customizable and whose focus is always on the client.
Inexperienced in-house HR is a bigger risk than it’s worth, and since outsourcing saves time, money, and stress, it’s clear that it’s the best option for most companies, but especially for small businesses.
Written by Samantha Joslin