Human resources is vital to attracting and retaining talent, building workforce capabilities, and bringing out the best in people. It’s no wonder firms are unreasoningly turning to the power of HR outsourcing to enhance this valuable function.
As beneficial as HR outsourcing can be, it’s not right for every organization. It can take the pressure off small in-house teams and provide much-needed expertise, but some responsibilities should remain in-house. Knowing what and when to outsource is the tricky part.
Please read on for five important considerations when determining if HR outsourcing is right for your company.
1. Start by assessing the size of your organization.
The need for HR outsourcing begins at roughly 20 employees and becomes more important as organizations reach 30 – 40 staff members. Once a company has 80 – 100 employees, needs often become more intense and may require a full-time HR person that can be supplemented with outside resources, as needed.
2. Don’t seek legal advice from an HR outsource firm.
When it comes to legalities and documents such as contracts and agreements, HR outsourcing companies aren’t the place to go. Legal advice should always be provided by attorneys. HR firms can offer guidance and prepare handbooks for legal review, but they can’t perform legal functions.
3. Streamline and enhance your recruitment process.
HR outsourcing firms are well-connected to professional portals and the best job search platforms. They are also knowledgeable of the latest market standards regarding compensation and benefits. By outsourcing your recruitment activities to a qualified HR partner, you’ll gain access to a larger and more qualified pool of talent. This means you can choose from a larger selection of experienced individuals whose skills align with the job.
4. Termination is not an HR outsourcing function.
An HR outsource firm can provide assistance, direction, and coaching through the termination process, but that function should never be fully outsourced. A manager should aways be an integral part of the termination process.
5. Is your company business experiencing rapid growth?
If your business is exploding, you may be struggling to keep up with the additional workload. You may also find that you are spending more time on administrative and HR roles than your own work. Growth adds complexities to HR responsibilities, too, making them less intuitive and more challenging to manage. 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 qualified HR outsourcing firm instead can provide your business with a seasoned human resources expert, potentially at a fraction of the cost of a full-time hire.
Is HR outsourcing right for your organization?
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/
