As the business landscape grows increasingly complex, more and more companies are turning to experienced HR partners to manage their critical human resources functions.
Human resources is involved with virtually every department and every employee, so managing it effectively takes significant time and effort. It’s an essential investment though, because getting it right will help you keep your employees productive and engaged while staying in compliance with ever-changing laws. Full-time human resource professionals can be expensive, rendering them out of reach for smaller businesses with limited resources. That’s where qualified HR partner can be especially advantageous. They provide HR expertise at a sustainable rate so that organizations of all sizes can access the human resources acumen they require.
In this article, we will share some introductory information about outside HR services along with six revealing indicators to watch for.
Why are HR partnerships becoming so popular?
As seasoned professionals with a wide range of human resources management and people operations knowledge, outside HR partners leverage their years of business experience and develop scopes of work based on client needs. They strive to elevate the HR function and support change management initiatives needed to scale the business. Effective HR partners are able to pivot among different roles and responsibilities to help each client meet its full potential.
Research shows that outsourcing your HR services can also produce significant savings compared to employing a full-time qualified HR professional, which can cost between $70,000-120,000+ annually. And that doesn’t include the additional expenses of benefits, taxes, workspace, resources, and training. Working with a qualified HR firm negates those expenses, frees up time, and reduces stress for overburdened staff members.
Here are six telltale signs that indicate your business could benefit from the services of an HR partner:
1. Human resources functions are interfering with other duties.
Leaders in small companies often have HR functions layered on top of their regular duties. They may lack the tools, technology, skills, time, or desire to oversee the complex requirements of human resources. Multiple business areas can end up suffering when people are stretched too thin. Streamlining all of your processes for hiring and performance can save you a great deal of time and money. If HR-related duties are interfering with the best use of key staff members’ time and talents, it may be time to enlist the services of a partner. Ultimately, complex employee relations are best left to skilled professionals.
2. Employee needs are not being met in a timely fashion.
If there isn’t someone dedicated to handling HR issues, staff members are bound to get frustrated and feel sidelined when their needs go unmet. Employee morale will diminish and word will likely spread among your workforce about how unresponsive the company is to employee concerns.
3. You’re experiencing higher-than-average turnover.
It’s normal to have some turnover of staff, but if you’ve recently begun to notice a mass exodus, it’s time to investigate why. Poor management of HR functions can lead to dissatisfied workers, growing complaints, and high turnover. Constantly recruiting and hiring is not only expensive in the short term, it also hurts you in the long term when you lose institutional knowledge and have to start from scratch.
4. Your company is in hyper-growth mode.
If your business is exploding, you and your team may be struggling to keep up with the additional workload. You may also find that you are spending more time on administrative and HR tasks than your own work. When this happens, it’s time to bring in a qualified HR partner. They’ll remove pressing employee issues from your plate so you can focus on key activities that can help your business thrive amid rapid growth. It’s also important to recognize that, when you’re in growth mode, your first instinct may be to search for an HR manager. But depending on the size of your organization, an external HR hire may not be the most efficient or cost-effective way to go. Engaging a skilled HR partner or consulting firm instead can provide your business with a seasoned human resources expert, potentially at a fraction of the cost of a full-time hire.
5. Your business is shrinking.
If your company is downsizing, you may find that a full-time HR manager is no longer necessary. Keep costs down by engaging a qualified HR partner to provide the select services you need.
6. You’re caught between too much HR help and too little.
Perhaps your company had administrative support taking care of HR, but you realized that wasn’t enough. Then you hired a full-time HR person and found out that was more HR than you needed. With the right outside HR partner in place, you can find that elusive sweet spot.
Is an HR partnership right for your company? The HR Team is there with the strategic solutions and valuable guidance growing companies need. We can assist with a variety of key human resources challenges, from analyzing market compensation, to reviewing and revising key policies, and beyond. Please contact our friendly, knowledgeable experts to learn more.
About The HR Team: Founded in 1996, The HR Team is a Maryland-based human resources outsourcing firm committed to developing strategic, customized solutions that respond to the unique needs and cultures of organizations of all types and sizes. Available as a one-source alternative to an in-house HR department or on an à la carte project basis, the company’s flexible service models address the full spectrum of HR needs that many organizations struggle to address. The HR Team helps clients achieve their highest level of success by providing value-driven human resources services that leave them time to focus on what they do best: directing business growth and profitability. Headquartered in Columbia, Maryland, the firm serves all of Maryland, Washington, DC, and Virginia. To learn more about The HR Team, call 410.381.9700 or visit https://www.thehrteam.com/.
