As companies grow, they may ask employees to take on greater responsibilities rather than hire additional help. While this can be a wonderful challenge and career opportunity, it can also put staff into difficult situations they’re not equipped to handle. Human resource functions are particularly prone to this practice and employers should think twice about force fitting a solution into this complex role.
Figuring it out
When a company is just starting, the role of HR usually lands on the owner to figure out. Like clockwork, the urgency of payroll or insurance renewal come rolling in. These cyclical interruptions hinder the company’s growth, so an employee might be asked to help. Basic HR functions are being covered without incurring additional expense, but it can feel precarious. An employee certainly understands the business, but that knowledge doesn’t necessarily translate into HR mandatories. How will the company be protected against unforeseen liabilities and changing regulations?
Department of one
A dedicated HR professional can be hired. Having an in-house resource provides access to expertise while maintaining control. Leadership is freed up to focus on growing the business while still being kept in the loop. This provides much needed expertise, however, it’s not realistic for one person to keep up with changes in payroll, tax administration, employee benefits, workers’ compensation and legislation. It’s also important to have a plan if your HR person gets sick, goes on vacation or potentially leaves for another job.
Another option is to hire an outside resource to help with certain HR functions. Companies can decide which services are most needed and partner with a company that specializes in that area. If your company’s needs evolve, you may outgrow the partnership. That’s why it’s a good idea to anticipate future needs and find a company that can grow with you. With a breadth and depth of expertise, a professional employer organization (PEO) can handle all aspects of outsourcing HR. At a fraction of the cost of hiring someone full time, your company will have access to a team of experts specializing in changing tax codes and legislation affecting businesses, benefits, workers’ compensation, training, payroll, recruiting, policy development and more.
The lure of saving money can be very powerful. It’s cheaper to ask employees who are already being paid to help out. That may not be the best choice for such an important role that gets even more complex with company growth. MidwestHR, a top Chicago PEO in Illinois, has been partnering with clients for over 20 years and anticipating their changing needs. Our 96% client retention rate is a reflection of how hard our team works to deliver exceptional HR. Give us a call 630-836-3000 to learn more about what is HR outsourcing and if it is a right fit for your company.