Is Human Resource Outsourcing Right For Your Growing Company?

If you're an owner or general manager of a growingwe take on more overhead and hire an HR Manager
company at some point you will find that more andor Coordinator?" The correct answer is - neither.
more of your time is being spent on dealing withAs with most situations in life, the quality of the
employee related issues and concerns and less andquestions we ask will determine the quality of the
less is being spent on growing your business. Theanswers we get. In this case, the correct question to
more successful you are... the more you grow... theask is, "How do we acquire HR expertise in the most
more you grow... the more employee issues andcost effective and productive way possible?" In a lot
concerns to deal with. That's just a fact of life whenof cases, the answer is to outsource all or part of the
you're in business today. So when do you look outsideHR function.
your company for help with your Human Resources?As companies grow there is a growing need for HR
If you are like most small business owners, you waitexpertise, but that doesn't mean that they need an HR
until the pain is so great that you have no alternativedepartment or even a full time HR person. A
but to bring in some help. Unfortunately by that time theknowledgeable and experienced HR professional can
damage has already been done.easily manage the Human Resources function of an
In actual fact the best time to bring on an HR specialistorganization with 20 to 80 employees on a less that
is when you notice that you are spending more thanfull time basis...sometimes even in as little as one day (8
20% of your time on HR issues. These issues consisthours) a week. This is where a "Human Resources
of, hiring and firing, employee on-boarding,Outsourcing" firm comes into play.
compensation and benefit administration, employeeMore than ever before, businesses are looking for
relations and development, conflict management,innovative ways to reduce their costs while increasing
change management, performance management,their productivity and bottom line results. An effective
regulatory compliance, among other things. If you areway of doing that is by outsourcing non-core functions
spending more than 20% of your time performingso that more time, money and energy can be put
administrative or non-core activities that are taking timetoward growing the business, all the while ensuring that
away from doing what you're supposed to beyour employees are well looked after.
doing...which is growing your business, then you have aUtilizing the services of a Human Resources
problem - even if you don't realize it yet.Outsourcing firm is an ideal solution for the organization
So at what point will you begin to exceed the 20%that is growing but is not quite at the size that would
mark. Usually it is when your employee base grows torequire a full time Human Resources presence.
about 20 or 30 employees. Once you get to thatOutsourcing companies provide experienced and
level...some HR expertise is definitely required. Thatcommitted Human Resources Professionals who could
doesn't necessarily mean you need a full time HReasily manage the HR function of an organization that
person on staff...it just means you need the expertise.is on the brink of moving to the next level of success.
In this economic climate organizations are extremelyMore importantly, they can do it on a less than full time
reluctant to take on any more overhead than theybasis, which means reduced costs in comparison to
absolutely need, but sometimes doing without doesemploying a full time HR person. HR outsourcing
more damage than taking on the extra cost. So atprovides all the advantages of an in-house HR
some point these organization will ask themselves thedepartment without the added cost of employing
same question..."Do we continue to do without, or doadditional staff.