Should Your Small Business Partner with an HR Provider?

The entrepreneurial spirit is an admirable thing: small business leaders are adaptive, they’re fast on their feet, open to innovation, and think critically. But even when they’re passionate about their businesses and what they do, some aspects of small business ownership can be spirit-crushing. With so much to do in small business management, HR work can fall by the wayside. But when HR can drive business success, can you afford to avoid it? Partnering with an HR company could be the answer.

Extending your HR department to include a human resources management company may be right for your small business when…

…administrative work starts to slow down operations

An estimated 25-35% of a small business owner’s time is spent on human resources work, including handling employee relations and managing benefits. According to The Alternative Board’s Small Business Survey of Time Management, small business owners work about 50 hours a week on average. That means that weekly, as many as 17 hours can be spent on HR administration. An HR company’s help can give you back valuable time that you can put into strategic business operation and goals, and because they are experts in their fields, they can do admin work faster, resulting in a lower bill.

…you have between 15 and 80 employees

There is something of a sweet spot when it comes to partnering with a human resources management company. With fewer than 15 employees, routine tasks like performance management may not be burdensome enough to warrant hiring more help, and with more than 80, it might be time to consider bringing HR tasks in-house with a robust HR department. Between the two, however, is a great size to bring on an HR provider. Keep in mind that these numbers are just guidelines, and HR companies can and do work with smaller and larger companies to great success.

…you’re not sure what HR work needs to be done

Chances are you’re not trained in human resources management. Most people aren’t! But simply not knowing the field makes it hard to know if you’re doing enough with HR in your business. An HR provider with experience working with small businesses can help you understand exactly what needs to be done to provide your employees and business as a whole with the tools they need to succeed.

…you need help with compliance

Part of having HR expertise is staying up-to-date on the latest business and hiring regulations, something that is difficult — or impossible — for small business leadership. But a small business’s inability to keep up with HR compliance, combined with its budget, could result in serious damage should it get into legal hot water. HR experts can ensure that the business is compliant with regulations to protect it should anything happen.

If any of these describe you, we’d love to talk to you about how extending your HR department to a human resources provider could be right for your business. HR Collaborative works with small businesses to cover all of their human resources needs, but don’t take our word for it. Check out our case study by clicking below: