Is it Time to Outsource HR? 7 Questions to Ask Yourself

Being a small business owner is not a task of the supernatural. A person’s list of skills and knowledge does need to cover every aspect of the industry in order to be successful. Nor, can a small business owner have the time and energy to run all parts of a business and have a balanced life. Often, small business owners have the mindset that they must do it all themselves. The surprising news is that this may actually be a detriment to the business’s growth.

Business growth occurs when there is time and freedom to creatively problem solve, collaborate and cement the details of a vision. A small business that is beginning to feel growing pains needs to address those and capitalize on opportunities. The owner and all-important players need to be focused on revenue generation. While it would be wonderful to pass on particular details to someone else so that this can occur, often the task falls to the owner, or to an employee who could be more productive completing other tasks. A small business owner may find that they are feeling weighed down by the required tasks of:

  • Documenting performance reviews of current employees
  • Searching for, interviewing and hiring new employees
  • Conducting new employee training
  • Creating and updating an employee handbook
  • Crafting agreements and contracts
  • Keeping up to date with the latest employee regulations, tax issues and OSHA requirements

There comes a time when these tasks can no longer be on a small business owner’s “TO DO” list. The answer is outsourcing. And no, outsourcing is not a strategy reserved for big businesses.

How do you know if it is time to outsource? Ask yourself these questions. If you answer a strong yes to more than two of these questions, it may be time to consider outsourcing your human resources responsibilities.

  1. Does your company have less than 20 employees?
  2. Is the process needed one that someone else can do better and more efficiently?
  3. Are the costs lower to outsource than what it would take in time and manpower to get it done in-house?
  4. Are the skills and expertise needed so specialized that it would prove impractical to have a regular employee try to complete them?
  5. Is the task at hand temporary and/or occurs in cycles?
  6. Did your small business start out as a “family-run” company and is now expanding to employees demanding contractual agreements and handbooks?
  7. Are the tasks at hand non-revenue-generating?

Professionals who specialize in human resources are readily available in the form of consultants, firms and companies. You can often choose to have a human resource representative who will take care of “a la cart” responsibilities, or you can choose to hand over all human resource operating tasks to an expert. And that is what they are: an expert. Human resource responsibilities no longer need to be a worry of a small business owner.

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