For startups and small businesses, it isn’t always possible to add a Human Resources professional to the roster. However, it’s still essential to have input from someone who knows not only how to deal with employees, but also what rules you must adhere to.
Fortunately, there are businesses that provide Human Resources management as a service. Here are five reasons why you should outsource your HR.
Compliance
The most important reason to outsource your HR is to ensure that your business is in compliance with the regulations of your area. As there are often different levels of regulation for both federal and regional levels of governance, it’s important to have an understanding of the bigger picture. For example, taking the time to understand your obligations as a business in the face of maternity leave and being ahead of the changes to minimum wage.
Failure to comply with regulations can result in hefty fines and lawsuits that can ultimately be the undoing of what would otherwise be a successful business. Ensuring that all of the compliance bases are covered is the top reason for outsourcing your HR.
Liability
Sometimes in business, you’ll be forced to have difficult conversations with employees. Whether you’ve received word of inappropriate behavior toward another employee or have to terminate due to poor performance, it’s important to do it the right way to protect all involved, yourself included. Mishandling a termination can result in a wrongful termination lawsuit. Even if it goes in your favor, the time and money spent battling are damaging.
By outsourcing to an HR expert, you can get all of your proverbial ducks in a row before having a difficult conversation. They can help you ensure you have the right paperwork in place and provide guidance on your approach. Some firms even offer assistance with the conversation itself, either as a guide or taking the lead.
Time Management
Strong policies and procedures play a significant role in the operation and scalability of a business. Unfortunately, putting these assets in place is time-consuming. For small business owners and entrepreneurs, this often becomes a monumental task that gets put on the backburner due to a lack of time.
Outsourcing, in general, is a smart expense for small businesses and entrepreneurs. It promotes wise time management so that the key figures in the organization can focus on the important, critical tasks each day. By outsourcing to an HR professional, you can have these foundational pieces put in place without detracting from your daily work.
The Value of Expertise
Quality of work goes hand-in-hand with time management. If you choose to handle things yourself, it will take a lot of time and frustration to create something that may not be as good as it would be if a professional handled the task. When you outsource to an HR professional, they’ll be able to do the job more efficiently due to their experience.
When it comes to specialized areas of focus, you don’t know what you don’t know. An HR professional might look at an employment contract you’ve drafted and suggest additions you wouldn’t have considered. Focus on your area of expertise and trust your outsourced HR manager to do the same.
Separation and Objectivity
Outsourcing HR isn’t just for small businesses; there are benefits for large organizations as well. One of the benefits of outsourcing is the separation between your HR person and the rest of your organization. When you work with a group of people every day, it gets harder to take an objective approach. By having the added layer of separation, your HR professional will be able to assist with strategic decisions without personal relationships impacting the results.
There are a lot of compelling reasons for outsourcing HR. It’s highly recommended for small businesses and startups who will be taking on employees to consult with an outsourced HR firm to set the business up for success.
