When starting a new business, how you staff your company is crucial. You will need expertise in many areas but may not require full-time help in all areas until the company grows. What does this mean for Human Resources in your company? Most companies will not need a full time HR Manager until they reach approximately 75+ employees. This is one area you do not want to put someone in charge of without the proper education, skill and training.
What is HR?
More established companies have an HR department which is responsible for talent acquisition, employee relations, compensation, performance management and most important, they should manage legal guidelines. For new and small companies, the HR function is better outsourced because of the complexity and expertise needed in a number of different areas.
Hiring the right talent as your company takes off cannot be stressed enough. You have only so much money to invest in employee’s. Who you hire can make or break your business. A business with the wrong staff in place will not grow and will not be profitable. In addition, if you hire the wrong person, you may be at risk legally if you let them go. You do not want to make a mistake here. Do you know what to pay the employee’s you are hiring? How do you know you are paying market value? Do you know what to do if an employee’s performance is sub-standard? There are so many HR considerations as you build your company. You do not want to leave these decisions to an employee who does not have HR experience, education and expertise.
Fortunately, HR outsourcing is very common today which is a great benefit. According to the latest statistics, more than 85% of companies, even the ones that have their own HR departments, still outsource certain HR services.
The Benefits of Outsourced HR Services
Outsourcing is very popular due to its many benefits:
You receive high level HR expertise and guidance which saves time and money.
You lower your legal risk.
There is no long-term commitment.
You pay only for the project or for the number of hours you need per month.
You do not need to pay for benefits or the employer portion of taxes. This amounts to, on average, 30% of an employee’s salary.
When you outsource services, you do not need to provide a work space.
You will see that this investment in your business will pay off many times over. Well managed Human Resources can and will make the difference in the growth of your business. If you are feeling unsure of what to do next, contact Platinum HR Consulting Group. We are happy to answer any questions you may have regarding your business needs.
