As a small business owner, there are many important business decisions that you need to make. One of these decisions revolves around your human resources needs or your HR. Small businesses often find themselves torn between hiring one or two dedicated professionals or outsourcing to a third party. Learning more about outsourcing hr pros and cons can help guide you toward the best decisions for you. Here are some of the key reasons why small business owners should outsource their HR needs to a third party.
No Time Spent on the Hiring Process
The hiring process for employees can be time-consuming. You have to put up help-wanted ads and then sort through the resumes that come in. You then have to schedule a time to interview candidates. Once you have zeroed in on the candidates that may be right for the job, you have to check their references and complete background checks. All of this takes time away from other tasks that you can complete. When you outsource your HR needs, the outsourcing company completes the hiring process, allowing you to focus on other tasks.
Reduce Your Human Resources Expenses
Hiring an employee is a lot more expensive and extensive than most people realize. In addition to having to pay them an hourly wage or salary, you may also have to provide healthcare benefits, dental benefits, 401K matching, social security taxes, vacation time, sick pay, and workers’ compensation insurance. This can add up. While outsourcing may appear to be more costly at first glance, by the time you account for all of these extra costs, outsourcing may actually help you to reduce the amount you spend to operate your human resources department.
Always Have Help Available
Many small businesses only have the need to hire one or two human resource professionals. This generally meets the needs of the office. But, if an employee is out sick, on vacation, or out on medical leave, it can leave your small business in a bind. You may not have the help you need available. This is where outsourcing can be beneficial. When you outsource, there are always human resource professionals available. If one person is on vacation, there is someone else to pick up the slack. This ensures your company has the help it needs when it needs it.
No Need to Worry About Retaining or Motivating Employees
Employee turnover can be costly for any business, but it’s especially costly for small businesses. Hiring, onboarding, and training employees add up. Due to this, many small business owners have to spend time worrying about retaining their current employees or motivating their employees. it can be a lot to think about, especially when you have other tasks that you need to focus on as a business owner. When you outsource your HR needs, it’s not up to you to worry about retaining or motivating those individuals. This may allow you to focus on other tasks.
The Ability to Increase or Decrease Hours
Many businesses run in cycles. They may have busy cycles and they may have slow cycles. When you hire human resources professionals as employees, your employees may be overwhelmed during the busy season and not have enough to do during the slow season. When you outsource, you can adjust the number of hours you need up or down, based on your business needs. This allows you to have the staffing you need when you most need it, without having to pay for staffing hours you don’t need.
Every business is different, and the needs of businesses can vary. As a business owner, it’s important to educate yourself on outsourcing hr pros and cons. You can then think about your business and determine how these advantages and disadvantages would affect your business specifically. This is the best way to make an informed decision whether outsourcing human resources needs is ideal for your company. Reach out to local third-party human resources companies to learn more about the benefits they offer and why they may be the right choice for your small business.
