WHY SMALL AND MEDIUM SIZE BUSINESSES NEED HUMAN RESOURCE PROFESSIONALS
Updated: Feb 5, 2019
Employing human beings is a bit of a puzzle. Human Resources keeps all those pieces together for your business.
The importance of outsourcing your Human Resource function. It’s complicated and you’re not an expert. You have lots of skills and talents, but understanding employment compliance and how to get the most from the talent you’ve hired may not be your sweet spot.
“I didn’t know that my small business fell under this employment law!” This is a statement that one of our newer clients made after receiving notification and a penalty about being out of compliance.
Did you know that companies with as few as 14 employees are subject to 15 federal labor laws, not to mention state and local laws? By the time an organization grows to 50 employees, 20 federal labor laws are required to be followed along with prevailing state and local employment laws.
Many business owners and leaders we have worked with over the last 30 years initially believe that most employment and labor laws only pertain to larger companies. Or, they may simply be unaware of current employment law requirements since no one in the organization is actually responsible for assuring legal compliance related to employment.
Several recently published studies report how essential it is for small (20-100 employees) to medium-sized (101-500 employees) organizations to have a well-managed HR function focused on supporting the effective management and continued growth of an organization. Without professional HR advice from an HR professional, companies often make costly mistakes that could have been prevented.
Many of our clients have tried on their own to manage the HR aspects of their business and learned it takes away from the ability for owners and leaders to effectively run the organization. Or, they have assigned ‘someone’ to be in charge of Human Resources (part-time) who has other equally important roles to play in the organization.
What we know is businesses don’t have the time, skills or training to protect their business from the dangers of outdated human resource policies and practices. The business of managing people and complying with current laws protecting employees is complex. Think of it this way, you wouldn’t want to assign someone to ‘sometimes manage’ your accounting and financials, would you? Ensuring that everyone in your business is engaged and motivated takes more than a few hours a week.
All businesses who want to be successful need to recruit, hire, engage, train and retain quality staff with the sole purpose of ensuring your business is running smoothly. When you’re a smaller company, you’re right to think you don’t need someone full time to manage HR, but you do want to rely on an expert in the field to help you. This is where an outsource alternative really works.
What is the Value of Having a Trained HR Professional on Staff or On Call?
A trained HR professional is passionate about the people side of the business and having that perspective will help to round out your organizational strategies and plans. What you benefit from by bringing HR expertise into your business is a partner in recruiting, hiring, employee relations, benefits, compensation, employment law, training and development, and people strategy. In most cases, an organization’s employees are its most important and valuable resource, with payroll representing between 20 and 30% of operating expenses. It makes sense to use a knowledgeable HR professional to invest in this key role.
What we’ve learned over the years is when it comes to HR needs, one size doesn’t fit all. That’s why when we engage with a business owner or leader we first spend time understanding the goals of the business, where the organization is currently and where it wants to go. We assess the culture, business performance, ask questions regarding the current talent in the organization, are curious about trends related to hiring or turnover, and spend time learning about current compensation and benefit philosophy and practice.
We also ask questions regarding how people get paid, current policies or handbooks and systems used. And we get a sense of the morale of employees and any current leadership challenges. From there, we work with the business leader to determine key priorities. Sometimes it’s focusing on the foundational aspects of HR such as creating a legally compliant Employee Handbook, ensuring that the general HR processes are intact and that policies align with the law and the company culture.
Other times, the foundational aspects are already in place and working, but there are other challenges in achieving the performance needed to meet goals. Bottom-line, based on the outcomes of our discussions, we design what is needed with the business leader and owner.
At HR Choice, we bring fresh eyes to your situation, along with top-notch business and HR expertise and our personal attention that complements your company’s strategies. This allows you to focus on your business while paying for only the services you need. We provide services that range from on-call to on-site HR professionals. We work directly with clients to ensure we are part of your team and focused on meeting the needs of your business.
The beautiful thing about this model is that you only pay for the services you need when you need them.
To see the wide array of services we offer, check out our website at www.hrchoice.com
What our Clients Say about HR Choice
Our clients value the partnerships they’ve built with their HR Choice team from the HR Generalist to the Senior Consultant. Our clients rely on their HR Choice partner for expertise, advice, perspective, and our sound business and HR expertise.
If you’re a small to mid-sized employer who is just starting out, fairly mature and/or desire to grow your business, we are the perfect partner to fit your HR needs. Please contact us at 720-335-6540 or firstname.lastname@example.org for a free consultation.
We look forward to hearing from you and supporting these critical elements of your business.