Outsourcing HR: How Your Small Business Can Benefit

Most small business owners start out with one primary goal: to create a business they’re passionate about and make it successful. In the early stages, only a few employees are working toward that dream; but as it grows, a company might find the need to add extra people or change its policies.

If you’re one of these business leaders, you’re also undoubtedly hyper-focused on making sure everything else is running smoothly. You may not have the bandwidth for recruiting new workers or managing current employees’ HR needs. However, HR consulting services providers can handle those tasks and more.

What are HR Consulting Services?

Outsourcing HR to a third party allows you to concentrate on what you know and love while an outside expert takes over the intricacies that come with onboarding new employees or overseeing the ones you already have. According to a Clutch.co survey, 24% of small businesses outsource a business process to increase efficiency. So if you’re already swamped with day-to-day operations, offloading HR to a designated consultant can benefit your bottom line.

Why Should Your Small Business Outsource HR?

HR consulting services’ usefulness ultimately depends on how much you want to outsource, whether it’s your entire human resources strategy or simply recruitment. Still, some advantages apply across the board. Take a look at how your small business can benefit from HR consulting services:

• Save Time. We’ve already touched on this, but perhaps the biggest reason to outsource HR is to free up your time. Those in charge of hiring and HR in small businesses typically wear multiple hats – responsibilities like recruiting or implementing employee policies are just part of their duties – and outsourcing their most pressing HR obligations earns back hours in their day. For other small businesses, HR consulting services can handle your entire HR operation or serve as an on-call HR expert.
• Maintain Compliance. Following local, state, and federal regulations is a monster task that many small business owners don’t have the background and expertise to accomplish. You’ll achieve peace of mind that your business checks all the legal boxes by entrusting compliance to HR professionals. If you’re wondering if aspects of your business, like compensation, harassment training, or ADA accessibility, are up to code, HR consulting services will let you know and give you suggestions on how to fix it.
• Boost Employee Engagement and Retention. Recruitment is important, but so is retention. HR consulting services can help reduce your turnover rate by creating an employee engagement strategy tailored to your company.
• Build a Strong Employer Brand. Your employer brand – the perception of your company held by current and potential employees – and workplace culture are essential for attracting top talent. A strong employer brand and positive culture will make your company a place your employees want to work. If you’re not sure what your employer brand looks like or how to develop a positive brand, outsourcing your HR will take the difficult details off your hands.

How Outsourcing Solves Top HR Issues for Small Businesses

Now that you know the benefits of outsourcing HR, you may be asking which of the top HR issues for small businesses can an HR consulting service address? While each provider is different, you’ll likely receive guidance on the following (and much more):

• Recruitment and Hiring. Outsourcing recruitment responsibilities is a common tactic used by small businesses. Not only can HR consultants source and hire the right people (including conducting candidate screening, developing interview questions, performing background investigations, and more), but they can also help with developing job descriptions or onboarding new employees.
• Pay and Benefits Guidance. Many HR service providers can ensure you’re paying a competitive rate by offering compensation strategies and advice. Paying industry-standard salaries will make your open positions more attractive and convince your current employees to stick around. You can also get assistance on creating or maintaining benefit programs if needed.
• Employee Training and Performance Management. Ensure your staff has what they need to succeed with training provided by experts. Training topics can cover anything from goal setting, to sexual harassment, to employee engagement, to hiring. Then, implement performance management policies to inspire and engage with your workers.
• HR Audits. Not sure how your current HR practices stack up? Many HR consulting services can audit your HR processes as well as your employment files, records, and other systems to ensure compliance with local, state, and federal requirements.
• Employee Policy Administration. Outsourcing is a smart move if you need better-defined employee policies, like time-off programs, telework/flexible work arrangements, or more. You can even get help with creating or updating your employee handbook.
• Employee and Corporate Communication Services. Conveying important matters that impact your workers can be complicated. An HR consultant can assist you with communication services for topics like layoffs, benefits, and compensation strategy.
• Terminations. They’re one of the most challenging parts of running a business: terminations. You don’t have to do it alone, though. Outsourcing layoffs or terminations can lift a massive weight off your shoulders.

The above are just a few of the top HR issues for small businesses that an HR consulting service can help you address. Regardless of what you need, see how iHire’s Human Resources Services & Consulting can save you headaches down the road and get you back to focusing on running your business.