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Is Your Business Ignoring Basic HR Processes? Maybe it's Time to Outsource

Human Resources

In the business world today, there is nothing more important to a business owner than the business itself. Balancing the client relations and customer service aspects with inventory and process controls takes constant upkeep to stay ahead of the competition. So how do many small businesses balance these tasks with employee relations and changing regulations? In many cases, they do not. It is understandable why the paperwork takes a backseat to growing the business, but many small businesses do not realize human resource management and business go hand in hand.

Consider the cost of high turnover, inconsistent practices with employees, and improper documentation that can lead to fines from the Department of Labor and many other agencies. These can be detrimental to a business’ bottom line. The revenue produced by a business should be invested back into the company, not spent on avoidable situations. Having a strategic business partner to help build a foundation based on sound human resource processes can help guide a small business in the right direction. This can be accomplished through education, best practices, and partnering at a pace that works for the employer and their business.

Understandably, many small businesses feel they cannot afford the expertise of an in-house HR professional. The extra cost associated with an additional headcount may not be necessary in order to provide HR support for a company, regardless of the size. Having a strategic business partner that can work with your company on a consultant basis can be a great solution. There are many potential benefits to outsourcing your human resource administration, some of these are:

  • No need to add additional headcount for a full-time HR professional
  • Direct link to an assigned consultant who knows you and your business
  • Ongoing updates of regulatory changes
  • Expertise in many areas of HR and safety
  • Cost saving efforts linked to high turnover and low employee morale (i.e., training, proper hiring techniques, EAP programs, etc.)
  • Flexibility to work with a company’s schedule; whether on-site or by telephone
  • Expanded product knowledge (i.e., 401(k), health and benefits, FSA, and more)

In addition, many small businesses are interested in learning how to manage their employees and the HR functions on their own in an effort to reduce costs. Outsourcing HR has proven to be a wonderful partnership opportunity for those do-it-yourself owners and managers. With guidance provided by a consultant, those responsible for the HR functions in a business are educated on best practices, do’s and don’ts, and provided with a ‘life line’ for many of those HR-related situations that occur frequently in the business world.

Having a ‘partner’ to educate and guide an employer through the turbulent waters of regulations and employee relations allows a business owner to focus more on the business. With the experience and expertise that comes with outsourcing HR, a business can elevate customer service relationships both internally and externally, potentially minimize costs associated with turnover and poor employee morale as well as be forward thinking in their business. All this can be accomplished without the expense of an additional headcount while still providing the knowledge and partnership necessary to be successful.



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Jessica Davis, PHR, is a senior human resources generalist with Paychex HR Solutions her experience is focused in both internal and external HR management.
This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.