Why Small Business Startups Should Consider HR Outsourcing

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Why Small Business Startups Should Consider HR Outsourcing

One of the most harrowing aspects of launching a small business startup is in trying to do too much too soon. Most of what you are trying to do is essential to running any business, no matter the size, but there is no reason you need to do it by yourself. Even if you have a limited budget, help is out there in the form of outsourcing. Have you considered outsourcing some of your duties so that you can focus on the management end of running a small business? Here are some reasons why you just might want to consider the benefits of outsourcing.

Better Use of Initial Funding 

If there is one thing almost every entrepreneur says about starting a new business, it would be the fact that there are always those unexpected expenses they hadn’t accounted for. No matter how thorough your business plan may be, you are bound to encounter something you hadn’t foreseen. Whether you financed your endeavor through a lender or have sunk your life savings into your startup, money is always tight in the beginning. Perhaps it would be wiser to outsource some of the duties which would be performed by a full time employee. Not only is that salary probably going to put a dent in your available resources but the benefits package could make it feasibly impossible to find well-qualified help.

One Less Headache

In the early days of running a business, most entrepreneurs tend to take on too much. Due to this lack of funding mentioned above, you will try to cover duties that would normally be delegated to various departments. Unfortunately, these departments and jobs haven’t been formed yet so you are left to cover those voids. By outsourcing HR, you can leave that to HR professionals which will free you to get things up and running in other areas. As the old adage goes, it gives you one less headache.

Employee Recruitment

This brings up another very important aspect of running a small business. Finding well qualified help can almost always require a full-time effort. Perhaps you should consider outsourcing Human Resources, HR, management. In fact, there are a number of HR services you could take advantage of, not least of which is recruitment. The types of HR outsourcing services available typically include expertise in the field of recruiting employees best suited to your needs. However, the types of HR outsourcing solutions don’t stop there. From payroll administration to HR management, this is one of the most invaluable services every small business should consider.

A Huge Savings on Technology

You have just sunk a small fortune into the technology you need to operate your small business. For example, you have just opened a bakery which will employ at least a dozen people to start. You may have a retail shop located on the premises but the crux of your business is to capture a B2B market. You intend to sell baked goods to supermarkets and retailers locally in the beginning with an eye on capturing regional, statewide, and even national markets. Each and every piece of hi-tech equipment from ovens to production lines will bore a high cost. The cost of the latest technology required to efficiently operate a human resources department is unnecessary when the types of HR outsourcing will offer the latest advancements in everything from computers to HR software and so much more. The cost of HR technology alone could be enormous.

High Levels of Expertise

Next on the list or reasons why you should consider outsourcing is the high level of expertise involved in each and every industry. Consider for just a moment the duties entailed in running a human resources department as mentioned above. No, HR isn’t the only type of outsourcing to consider, but it can exemplify just what level of expertise is needed in just that one area of your business operations. Did you know that HR teams handle everything from recruitment to onboarding to out boarding? Typical tasks would also include training, payroll, annual job reviews, reporting to directors and so much more. Can you imagine what level of expertise is required in the recruitment process alone? Not only is it necessary to make employment offers attractive but knowing where best to advertise for recruitments is a field unto itself. 

Flexible Staffing Solutions

Some businesses require a larger workforce at different times of the year. For example, retailers almost always require a larger staff as the Christmas season approaches. Then there are businesses such as wineries that do the bulk of their work after harvest in the vineyard. Both wineries and vineyards are highly seasonal in nature and so it is often necessary to recruit additional help as a season demands. Here again, knowing where to find seasonal workers experienced in working the fields or producing wines may present a challenge. Many are employed year round while the ‘extra help’ is hired as needed.

Many Duties Under the Umbrella of One Paycheck

Finally, imagine how many people you would need in your small business HR department to efficiently handle all of the above mentioned tasks. As a matter of fact, most small businesses can’t afford to operate an entire HR department and all it entails. The real beauty of contracting an outsourced HR department is that you gain a high level of professional competency in every service but it all falls under what could be considered as one paycheck. Instead of hiring several people to man an HR office you can simply outsource those duties to a specialist HR firm.

In the end, cost should never conflict with value and this is why it pays to ‘hire’ experts in the field. Just as the types of HR outsourcing services include recruitment of the top talent in any position, outsourcing to an HR firm provides expertise in every aspect of human resources. Isn’t it better to get more for your money? That’s the bottom line that will enable your startup to grow its bottom line.