Where to Start: HR Services for Small Businesses

Not every small business is aware of the HR services available to them until something like a lawsuit, unruly employee, payroll incident, lack of time, or a sudden growth in the business has led them to look for help. 

HR services encompass activities businesses need to take care of their employees. Both small and large organizations may choose to hire HR services outside of their organization. Payroll, benefits, and workers’ compensation are often the most common HR services that small businesses choose to outsource. But HR partners can also provide help with recruiting, onboarding, handbooks, compliance, and much more. Below are seven HR tasks that you can outsource to a partner:

1. Securing & Offering Employee Benefits
2. Handling Payroll, Compliance & Legalities
3. Managing HR Operations
4. Onboarding & Growing Teams
5. Motivating & Engaging Employees
6. Training & Developing Employees
7. Recruiting Top Talent

If you’re reading this, you might be considering HR services for one or all of the reasons listed above. But how do you know for sure when it’s time to hire a partner? And then where do you go from there? To start, evaluate if your business is exhibiting some of the signs it’s time to hire an HR partner.

Signs You Need HR Support

• HR tasks are interfering with you or your employees’ other duties. In other words, you or someone else on your team is spending the majority of their time handling payroll, benefits, and other administrative work. This applies even if you have an internal HR team or person handling things — their time could be better spent on recruiting and retaining your talent. 
• Your company is poised for growth. If you are hiring more employees or expanding your business, you’ll have more to take care of — meaning if you don’t already have an existing HR structure in place, it’s only a matter of time before you will need one. 
• Employee needs aren’t being met. Regardless of your company size, if employee needs aren’t being met, that usually signifies an HR problem. Difficulty hiring, high turnover, and employee complaints all signify this issue. 

There are also questions you should ask yourself and of your business before deciding to use HR services. But really it comes down to two things — the risks associated with not having support and the benefit to your business if you do. Without an HR partner, you could get bogged down in administrative tasks that keep you from growth or put your business at risk. 

For example, federal, state, and local laws and regulations are constantly changing. The average small business owner spends $12,000 a year dealing with compliance issues. As a result, getting and staying compliant is a full-time job.

And though your business may be doing well — you might be able to do even better. HR services for small businesses usually result in cost-savings, and faster, more prolonged growth. Small businesses that leverage an HR partner: 

• Grow 7-9% faster
• Reduce employee turnover by 10-14%
• Are 50% less likely to go out of business

HR services exist for a reason. If you’re a small business, hiring an HR team to handle everything can be a steep expense. But most HR partners provide their services for a cost lower than an experienced HR professional. Once you’ve decided to outsource your HR, evaluate your options. 

How to Evaluate HR Service Providers

Not all HR partners for small businesses are created equal. To truly leverage the value of an HR partner, consider a local one. Local HR service providers are aware of local employment laws and regulations, your market, and often your type of business. More specifically, look at whether an HR service provider: 

• Is certified (under the IRS and Bonded ESAC accreditation)
• Offers a breadth of services under one roof (e.g. payroll, workers’ compensation, benefits, and healthcare insurance)
• Has personalized customer service

When you are ready to leverage HR services, finding the right HR partner for your business is an important decision. Download the guide below to learn more about the seven activities an HR partner can help you with as you prepare for the transition.