HR is one of those functions many businesses are afraid to outsource. It’s easy to see why. Most business owners would prefer to have a full view of their recruitment process and know who they are hiring as much as they can.
But what they don’t realize is that they may be losing a lot of money and time handling HR on their own. The small benefits they think they’re getting are negated by the mistakes they make.
This is why inexperienced owners who handle HR often have turnover issues or have difficulty attracting the people they want. Let’s take a look at some of the signs that you may need to starting outsourcing HR duties.
This article will also give you a few tips on how you can hire a good company to take over your HR function.
It’s Draining You
The recruitment, onboarding, and training process can be very draining to small business owners. This is especially true when they don’t get the results they want. Having employees leave a week or two after receiving training is one of the most frustrating things for a business owner. It’s even worse when it happens repeatedly.
There is a lot of work involved in crafting job listings, posting them, and interviewing prospects. Then there’s everything that comes with implementing benefits programs and signing employees up.
These are all things that you could hand over to an experienced HR team. They will make the whole process seamless, and everyone will be happier, including employees. They know how to attract exactly the type of employee your business needs. Outsourcing teams are also proficient at conducting interviews and background checks, as well as onboarding them. There may be a stigma around outsourcing, but these are just common outsourcing myths.
From then on, you can choose to handle training on your own or let the HR company handle it. All of this will result in lower turnover rates, better morale, and better production.
You’re Not Competitive
If you’re looking around your industry and you’re noticing that your competitors are offering much better benefits packages than you, you might have no choice but to outsource.
Why? Because HR companies have access to much better deals due to volume, they will pass those down to you as a customer. Not being able to compete on benefits is a big issue that you can’t overlook. If you decide to stay on your own, then you may have to overcompensate in other areas and lose money. This is why outsourcing HR is such a no-brainer for many small businesses.
You’ve Made Mistakes
If you’ve dealt with multiple fines and compliance issues related to employees lately, then there is no reason for you not to at least consider outsourcing. Keeping up with the latest laws and regulations is tough even for trained HR employees. So, if you’re handling much of the load yourself, you need to look at outsourcing to avoid future mistakes.
How Do You Pick an HR Company?
If you think outsourcing is the right thing to do right now, you have to know how to pick a good HR company. The most important part is making sure that they’ve been in operation for a while. You also must look to see if possible outsourcing partners have a good reputation with businesses in the community. They also must be familiar with your line of business and be able to offer services that go beyond recruiting.
The best teams will not only handle recruitment but will become a true part of your team. They will help with moving new hires through the pipeline, establish and monitor training programs, and build internal systems for your employees. These systems include platforms where employees can see things like pay slips, training credits, upcoming training, news bulletins, and more. And you can expect them to have a solid presence in your business, and even help the employees you recruited before you worked with them.
Go with a team near you if possible, as it will cut prices down and make them more accessible. This could be an issue if you’re in a smaller town. But, if you’re living in a major city like Bristol, for instance, you should have no trouble finding a great team that can help you. If this is where you’re located and you’re looking for a reputable outsourced HR service, look at a service like Bristol HR Dept.
Why You Should Start Outsourcing HR – Summary
Outsourcing HR could be one of the best decisions you’ve ever made for your business. If you’re still on the fence, continue looking into the benefit of outsourcing this function. Also be sure to consider interviewing a few teams to see how they could help your organization.