If you’re like most small business owners, you’re used to handling a variety of tasks on your own. Outsourcing duties like processing payroll and handing human resources is probably low on your list of priorities. After all, if you’ve been doing it by yourself for years, why add the extra expense now?
While your business probably can survive without an HR department, the real question is whether it should. Here’s a look at the potential problems of handling your own HR, benefits of outsourcing, and tips for creating your own internal HR department.
The Problem with Handling Your Own HR
Many small businesses thrive by being lean and mean. This often means that the owner takes responsibility for tasks like keeping the office clean, handling IT issues, ordering supplies, and taking care of staffing needs. This works fine for a while, but as your business grows, you’ll need to focus more of your time on critical tasks.
The next step is usually to delegate your HR needs to an internal staff member like an accountant or administrative assistant. This might seem like a good solution, but adding responsibilities like handling payroll, hiring and training staff, and managing benefits will stretch this employee thin.
As you hire more staff, HR duties can take on a life of their own. This often results in other more important tasks falling to the wayside. If you’ve noticed a reduction in your employee’s productivity, it’s probably time to start looking for another solution.
Outsourcing Your HR Needs
Outsourcing your HR needs to a third party like a payroll company or insurance provider is a less expensive way to relieve yourself of these duties without creating an entire new department. There will be some additional costs involved, but the extra time you’ll save makes it well worth the expense.
If you decide to try this route, you’ll want to choose your partner carefully. Make sure the company you work with is responsive, professional, and pays attention to details. Otherwise, you’ll end up regretting the move and could spend more time fixing problems than you saved by outsourcing in the first place.
Tips for Creating an HR Department
Deciding when to create your own internal HR department is really a numbers game. Experts say that a staff level of 40 or more employees is the tipping point for making an HR department worth the expense. You can save yourself from having to go through a job search by promoting a current employee to a full-time HR position. Covering the cost of an online human resources certification is an inexpensive way to ensure the employee you choose has the necessary qualifications.
If you have more complex needs, you may want to conduct a job search and find a new employee with specialized experience. This may include the ability to recruit and quickly train new staff members or detailed knowledge in how to navigate complex employee benefits options. No matter what route you choose to take, be sure to clearly outline the duties of the job and your expectations. This will help ensure everyone involved is satisfied and your business continues to thrive.