A common statement echoed by many small business owners is, “I’m a small business. I manage all HR related tasks, and don’t need HR… yet.” And, the most common question they ask is, “I’m a small business, why do I need an HR generalist when I can do it myself?”
Many small and medium-sized businesses will take on human resource duties, as well as payroll and tax management, reception, and multiple other hats to save money and run as lean as possible. Every situation varies, but this is only a perception of savings!
As business rules become more complex with compliance issues and employee management risks, there is an emerging trend for small businesses to outsource HR responsibilities.
As the payroll provider for your clients, you might find that yes, your clients probably can manage HR themselves, but they can also be more effective in other areas of their bourgeoning company. By speaking to them about outsourcing these administrative duties, you can demonstrate the ways this will save time, (which equates to cost savings) and ensure compliance throughout their organization. Legislation is changing compliance requirements frequently and outsourced HR professionals are required to remain educated and certified. This ensures compliance, and helps avoid pricey penalties.
Human Resources are valuable and can be extremely helpful to the small to medium-sized business. Here are some top reasons where human resources brings incredible value to make it easier to relate to your clients’ needs.
Labor Cost Management
Whether your client is a scaling start-up and hiring frequently, or a seasoned veteran of business, talent acquisition, onboarding, management, and development are key cost factors in their organization.
If business owners are hiring with frequency to keep up with internal demands, they will likely need assistance to help manage the effective recruitment of strong talent. The objective in hiring star talent is to ensure they hire correctly the first time, and minimize any time spent on turnover. Leave these employment tasks to the professionals to help guide you in correct recruitment.
The management and development of employees is also critical in maintaining top talent that will continue to drive sales and customer service to increase business. Making sure the right people are in the right positions is a long-term strategy that requires evaluation and review.
Employee Satisfaction
Determining employee satisfaction can be an ambiguous task, but can be measured through due diligence. The human resources specialist will address employee dissatisfaction, as well as training and development needs to get to the core of what could be affecting their motivation.
The HR specialist will also have appropriated documents that aid in career path goals, performance documentation and exit strategies, and have the training to discern which path is best for the employee and organization.
Conflict Resolution
Every company hopes to avoid conflict, but it’s inevitable. Employee relations are influenced by many factors – education, personalities, work ethics, and overall experience. An HR specialist is trained to manage and resolve conflicts to restore healthy working relationships.
Compliance
There are frequent legislative changes that affect compliance measures, making navigation of these rules difficult. Simple situations can be a little tricky for both employee and employer. It’s imperative to understand what course of action situations require.
An HR specialist will know which questions to ask, or not to ask. They will also know how to properly document occurrences to ensure the rights of both parties are protected. One mis-step, and it could cost your client dearly.
There will always be varying factors that will determine the level of human resource management and engagement required. One thing is for certain that your client must understand – it is necessary. Business best practices are in place to help avoid innocent and costly mistakes, and to ensure your client’s company thrives on every level. By understanding your client’s company’s short and long-term goals, you can effectively demonstrate how implementing HR best practices early on in their company will create a model that is more easily scalable.
Asking questions is critical to understanding how to advise your clients to the best ancillary services for their business. If possible, schedule a quarterly, or at the very least a bi-annual, meeting to discuss their goals, strategies, and any changes that occurred since your last visit, and why. Your client and you will create a synergy of trust and action that will continue to drive efficiency and produce profitable results. Help make introductions for your client to HR specialists that can help provide at least an overview of their services and how they can play a vital role to their business.