Is It Time To Outsource HR For Your Small Business?
A client reached out to me recently (we’ll call him Jeff) and shared that he finally got to watch his son’s baseball game. My initial reaction was, “Wait, Jeff, I thought you were going to his games?” He explained that he’d never missed being physically present at his son’s games. But THIS TIME he was 100% focused on the game for the first time in a long time. He was both physically AND mentally “present” — rather than having one eye on his son and the other on his mounting HR responsibilities at his growing small business.
If this sounds familiar, you aren’t alone. Just over 50% of small businesses handle HR on their own. There are so many other small business owners out there like Jeff that are great at what they do, but they didn’t get into business to be an HR Manager. But they can’t afford to hire an HR manager yet, so as a result, their to-do list is a mile long with tasks and responsibilities that take up precious time, energy and if done wrong…could cost them their business.
Do any of these sound familiar?
Fretting over how to craft an employee handbook from scratch
Tracking down timesheets
Worrying about entering payroll before the bank deadline
Responding to unemployment claims
Figuring out how to manage employee issues
Finding and hiring the right people
Trying to find benefits options that fit within your budget
Deciding whether or not you should fire that one employee
It may be time to consider outsourcing some or all of your HR functions.
As a business owner, it is very easy to get overwhelmed because you feel like you need to be in charge of everything. Outsourcing your company’s HR needs benefits you, your employees, and your business. Most importantly, it takes extra responsibilities off your plate and puts them into the hands of a trained professional so that you can focus on what you do best.
So when exactly is it time to call an HR Consultant? Well, it’s never too soon to begin outsourcing at least some HR responsibilities. But for the most part, if you find yourself doing one of these four things, it may finally be time:
You’re spending too much time away from real work — Tracking down timesheets, inputting hours, doing payroll, administering benefits, recruiting and onboarding new employees, etc., can dominate an entire workday if you let it. If you spend at least 20% of your time on HR needs when you should be focused on generating revenue, it’s time to outsource. Yes, you could turn everything over to an office manager, Ops Director, or CFO, but that person likely knows as much about HR as you do. And like you, they will be spending time doing something other than the primary job you hired them to do. In fact, about 70% of small businesses with 5 to 49 employees add HR responsibilities onto the workload of employees with little to no experience (or training) in HR.
You’ve found yourself Googling about labor laws — If you’re tied up on Google researching employment laws, HR how-tos, searching for templates and forms, or researching how to write your own employee handbook, it might be time to seek out an HR professional. Not everything you find online is accurate. Not to mention, not every template on the internet these days will meet the unique needs of your small business.
You struggle to attract and retain quality employees — Posting an open position is the first step but working with someone who understands how to make the job and your company attractive to potential candidates will help you find the right people for your company. Employees prefer companies with good culture, competitive pay and benefits, and development opportunities. The right HR professional can help you craft and execute the right strategies to help you find, and keep, the top talent your business needs.
You’re planning to hire more employees over the next 12 months — Look, you can’t build a house on a bad foundation, and you can’t build a business without the right systems and processes in place. Setting up clear rules, policies, and procedures that are compliant with state and federal employment laws and regulations gives your small business that solid foundation and creates a solid structure as you bring more employees onboard to grow your company.
Outsource Your HR Needs to Grey Owl HR!!
If you are an employer trying to navigate the challenges of HR-related issues on your own, let’s work together to ensure your company is protected now and well into the future. Grey Owl was founded to give small businesses access to expert HR advice and services that fit their budget when and where they need it. We work alongside our clients to design and implement people strategies that transform culture, decrease turnover, manage employees and protect your business from potential lawsuits.
Got questions? Ask them here. To learn more about Marisa, click here.