Human Resources is often so intimately involved in the day to day operations of a company that a lot of employers wonder if they could ever effectively outsource it. Small businesses can not only effectively outsource HR to a managed services team, but can run a stronger company and more productive workforce with an external HR consultant, or managed HR services provider.
Here are some keys to outsourcing your small business HR functions, while still effectively achieving maximized employee performance and fulfilling the strategic objectives of your small business.
Understand the Relationship
An effective HR consultant or managed HR services provider won’t typically tell you what to do, but they’ll do it with you or for you. Leverage your HR consultant’s ability to effectively address any issues that may come up by being honest, open and ready to unguardedly share your objectives with them. The more your HR consultant knows about your company as well as any specific situations, the better they can assist you in creating clear and effective policies, employee management protocol, and add to or pair down your team. Educating your HR consultant about your small business is time well spent because it allows them to shift from generic solutions to customized, practical and effective solutions for your specific objectives.
Understand Your Strengths and Weaknesses
Outsourced HR isn’t just for companies with no dedicated HR person, they often work alongside in-house HR professionals to complement their skills. Typically when a small business gets in HR trouble (or sued), it’s because a process hasn’t changed with the times. A small business owner shouldn’t assume they are in compliance because they’re handling HR issues the way they always have. With compliance issues changing so rapidly, it’s difficult (if not impossible) for any one person to keep up with everything.
Regulations rapidly change in regards to hiring, firing, benefits and even how you manage your team. For example, your in-house HR person may be great at hiring but might fire so infrequently that they may not be able to address firing exactly the way they should. In that case an HR consultant could handle it for you and effectively limit liability. Hiring an HR consultant with specific skills related to your objective can help protect your company, as opposed to hoping that your old policies are still the right ones to have in place.
Any function of Human Resources can be outsourced effectively if you clearly communicate your objectives to your HR consultant, trust their abilities to address specific HR-related issues, and allow them to work in tandem with your small business to reach your objectives.
