Best HR Outsourcing for Small Business

Imagine driving down a busy highway, confident in your destination but suddenly realizing you've missed your exit. As you try to navigate back, you encounter roadblocks, detours, and confusion. This scenario mirrors the challenges many small businesses face when managing their human resources. From payroll to compliance, benefits, and culture, the road to HR success can feel like a maze without a map.

Small businesses often struggle to hire and retain qualified HR professionals due to limited budgets. This is one of the main reasons why many small businesses choose to outsource their HR tasks and responsibilities. Should you choose to go this route, here are some of the most important things to look for in an HR outsourcing partner.

The Best HR Outsourcing for Small Business Will Cover These Key Aspects of Human Capital:

  • Efficient Payroll Administration – Getting payroll right is crucial for everyone's happiness. From withholdings to reporting, every detail matters. Look beyond cost comparisons when choosing a payroll provider and inquire about their service level assurances. You need a provider who can address urgent payroll needs promptly.

  • Optimizing Benefits – Offering benefits is important, but affordability is often a concern. It's crucial to partner with a firm that has employee benefits experts to help you
    stay informed about healthcare benefit requirements, provide plan options that fit your culture and budget, assist you with benefits administration, and help you make well-informed decisions.

  • Ensuring Compliance – Regulations can be complex and ever-changing. Ignorance is not a defense, so it's vital to stay compliant with regulations. Don't rely solely on payroll outsourcers; the ultimate responsibility lies with you as the employer.

  • Managing Risks – Business always involves risks, including employer and liability risks. Consult various professionals for advice (including a business insurance consultant) but remember that aligning strategies is ultimately your responsibility.

  • Strategic Tax Management – Explore all avenues to reduce your tax burden, from simple 401k plans to more sophisticated strategies. Ensure you're taking advantage of all available tax-saving opportunities.

  • Cultivating a Positive Culture – Your organizational culture is the key to aligning and stabilizing all aspects of your business. It's what gives life and color to your organization. Review your alignment of accountabilities, motivations, and reward systems to ensure they reflect your desired culture.

Most small business owners and executives wear multiple hats, including handling tasks like payroll, benefits management, hiring, and training. However, as the business grows, this approach can limit the ability to hire and retain great employees who contribute to its success. At a certain point, it becomes more beneficial for the business owner to delegate these responsibilities to a dedicated HR manager, partner, or team. This shift not only ensures compliance with employment laws but also streamlines hiring, training, compensation, performance management, and culture-building efforts. Outsourcing HR as a service can save valuable time for the business owner or controller, allowing them to focus on revenue-generating activities and the overall growth of the company.

Are you ready to navigate the complexities of HR for small business with confidence? We're here to help you take the first step toward a more efficient and successful future for your organization.

Written by Julie A. Wenger - HCM & HR Consultant at Connor & Gallagher OneSource (CGO)

This blog is for educational and/or informational purposes only and does not constitute tax, financial, or legal advice.