HR
PRODUCT
Everything You Need to Know About HR for Small Businesses
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Feb 22, 2023
Does your small business need an HR arm? Many founders and entrepreneurs are left wondering what HR for small businesses truly looks like within a practical application. After all – you know that there are team members, compliance and culture needs that need to be met. However, sourcing the right HR for small business tool can feel overwhelming.
If this sounds familiar, we want to encourage you. HR services for small businesses and professional outsourcing networks can be very effective in helping you to mitigate your HR risks and maintain compliance across your organization, no matter what scale or size you’re currently at.
Read on to learn more about the benefits that HR consulting services for small businesses can bring to your organization.
Why Small Businesses Need HR
Human resources departments manage your most important resource available: Human capital. Something so nuanced and complex requires an expert approach for the best total results, keeping top talent within your brand and building your culture simultaneously. Other key areas of business that your HR services for small businesses may cover include:
- Training and onboarding: This task brings your incoming team members to a certain level of proficiency and efficiency from the very start of their tenure.
- Compliance support: From local and national requirements to inter-organizational support, HR specialists can help you to maintain compliance at every level of your business.
- Compensation support: Payment schedules and tiers can be complex. Having an expert to help you navigate the intricacies of compensation is a fantastic investment in your brand experience and company culture.
- Retention and recruiting: Your company is as strong as the people you hire. Trusting an HR specialist to support you in this task can give you extra peace of mind and assistance as you build your team.
- Interpersonal communication and employee needs: From disputes to one-on-one team member assistance, your HR specialist is trained to effectively and professionally handle needs across your organization’s team members.
Outsourcing HR Services For Small Businesses in 2023
While small businesses can benefit from professional HR services, it doesn’t mean that you have to handle it all yourself. Outsourcing this area of business can free up hours of your day and allow you to move to higher-level tasks. Below are just a few of the other benefits you can enjoy from outsourcing HR for small business needs.
1. Cost savings
Hiring the wrong person or investing in fractional software solutions can contribute to lost overall cost. However, outsourcing through a single, centralized solution can help you to save significantly in the long run, and keep you agile enough to absorb other costs of doing business.
2. Agility
Choosing to rely on outsourced HR support enables you to pay only for what you need and use. You have the flexibility and convenience of professional assistance without the costs and obligations of an internal hire. It’s a stronger method of doing business for companies at every scale and can set a foundation for sustainable and replicable growth.
3. Engagement
When your people are cared for, they excel. Engagement generally rises with a solid HR outsourcing strategy in place at every scale of business. Your employees will have a direct link to the support they need to thrive and navigate situations in the workplace, allowing them to feel empowered, engaged, and completely connected with your company.
Three Things to Look Out For in HR Consulting
No two HR consulting services are alike. Understanding key indicators of success in your choice of an HR consultant can help you to navigate the search process more effectively. While there are many different questions or areas of proficiency you can look for in your ideal solution of choice, we do recommend identifying these three elements before committing to any HR-related product or service:
- Background and longevity: Knowing the details of the service’s formation and their length of success in their respective industry can help you to feel confident upon your sign-on. It also helps you to understand how to best leverage their service ranges.
- Structure and organization: Outsourcing to an HR consulting service or an HR management system is different than bringing on an in-person contractor. Before you commit, it’s important to understand the functionality and administrative processes you can expect for basic HR needs.
- Area and comprehension of expertise: Your business needs an HR solution that is comprehensive enough to cover your needs. Knowing areas of expertise and the comprehension of your business’s plan is essential for long-term success with your HR company of choice.
Five HR Consulting Services for Small Businesses
There are a variety of options to choose from if you’re looking to outsource your tasks related to HR for small businesses. Below, we’ve listed the top contractors and services in the industry, along with their unique selling points and areas of expertise.
- Bambee: Best overall – Bambee is both accessible and simple, allowing you to put your HR on autopilot for just $99 per month. You’ll get extensive HR audits, a dedicated manager, and assistance in every area of human resource management.
- Emplicity: Best professional employer organization-style HR support: Emplicity is a PEO that offers tactical services in specific areas, such as admin, payroll, and benefits management.
- Gusto: Best for rapidly scaling organizations: Gusto offers a payroll and benefits assistance package that’s specifically scaled to the needs of small business owners. While limited, it offers a pay-as-you-need structure.
- BambooHR: Best for automation lovers: Bamboo’s unique selling point is its skillful automation-based HR support to help save you time on your menial HR tasks.
- ADP: Best for payroll support: ADP’s main focus outside of its PEO extension is payroll support.
