For smaller companies, hiring an entire team to ensure the smooth operation of a company with fewer than one hundred people is not only expensive but also makes minimal sense.
Ergo, it is commonplace to outsource this role to HR teams, which often operate remotely but are dedicated to helping small businesses stay on the right side of legal jargon, and keep their staff happy and protected.
So, if you are a small business owner looking to hire an HR team, here are five of the best reasons to outsource rather than hire in-house.
Saves Money
As mentioned in the intro, whether you are looking to hire HR Swindon, or you want to hire a HR team in San Francisco, it can be expensive. Wages, computers, and office space can rack up the cost to your small business, as well as having to go through the often-long- winded hiring process.
Rather than opting for this, by choosing an outsourced HR team, you can access their knowledge as and when you need it, without having to pay for full-time or part-time wages. Many HR teams that are outsourced can offer businesses a range of different services or set duties that they will perform for a set fee per month, so you will know exactly what you are paying for.
Instant Access To Expertise
What is the rate of sick pay in your state? How much time does a staff member have to give before taking bereavement leave?
Most business owners have no idea so, hiring an outsourced HR team can help you to make sense of the world of technicalities and legal responsibilities behind running a business. What is not to like about that?
Legal Protection
The world of business can be a tricky place. Moreso, if you run into legal issues that you had no idea about!
One of the core reasons why many small business owners outsource their HR is to provide legal protection to their businesses and themselves. By outsourcing to an HR department, you can rest assured that your business is adhering to labor laws, such as wages, paid time off, and sick leave, as well as meeting all relevant local and national policies applicable to your area of business.
You also reduce the risk of issues occurring with the hiring and termination process. An outsourced HR team can oversee clear job descriptions, ensure a structured interview process, and even draft clear contracts between you and your staff, all with the correct legal terminology, should a legal issue arise in the future. It seems nitpicky but, should anything go wrong, these are the areas that employment lawyers will focus on.
Saves Time
For those who may be a bit more ambitious, it can seem more cost-effective to try and run the HR department by themselves.
Obviously, this is not only exhausting but takes additional HR training, which is not cheap and can eat into the time needed to run their business. So, rather than wasting a lot of money and time learning everything an HR manager needs to know, alongside running your own business and looking after staff, outsourcing the HR department will save you a significant amount of time. Freeing up internal resources will allow you to concentrate your efforts where they are needed, helping your business to expand and succeed.
Scalable At Minimal Costs
When your business starts to grow, other areas have to grow with it, and, you guessed it, HR is one of them.
If you aim to hire an on-site HR team, scaling can be costly, with the average salary of a general HR staff member setting your company back nearly $60,000 a year in wages. Yikes!
Outsourcing to a dedicated HR team means that as your business grows, you have access to their services too, but not at such a high cost to your company. Many outsourced HR teams offer set packages for businesses, allowing you to assess what level of support you need as your company grows.
Remember, when looking for a company to outsource your HR to, be sure to check reviews of current clients and conduct interviews with each team to assess their professionalism and suitability.
