Overlooking HR No Option for Small, Medium Business

Overlooking HR No Option for Small, Medium Business

by National Peo

There’s an assumption among some small and medium-sized businesses that human resources is something they can deal with later. When a business is in early stages of growth, HR may be considered a luxury or a burden on management. The focus is more on survival and then profitability, rather than back office processes. HR is something that big companies need, once they have hundreds or thousands of employees and can justify a full department to handle all the associated issues that come with a workforce of this size.

The truth is that HR encompasses a range of very important functions, including everything from payroll to regulatory compliance and recruitment. Yes, HR can be a drag on the management team of a small or medium-sized company, but that’s exactly why they should partner with an experienced HR consulting firm. Doing so ensures that the company’s leadership is freed up from the responsibility of trying to administer human resources (which is likely not its expertise anyway), while a team of professional HR consultants ensures employees are content, prevents the company from stumbling because of any legal compliance issues and provides the support senior management needs in order to grow the workforce. Big companies usually have their own HR departments, but one of the reasons they were able to grow, succeed and to reach that level is that they didn’t ignore HR early on.

A sole proprietorship or two person operation might be able to get away with minimal professional help in the back office, but as soon as employees are added or growth begins, HR can’t be ignored. Trying to track salaries and deductions in a spreadsheet simply won’t cut it. Multiple employees means payroll needs to be formalized. HR consulting companies can take over payroll functions, providing employees with more attractive options such as PayCards, direct deposit and tax filing, while providing managers with advanced reporting capabilities to track attendance or maximize shift scheduling. Growing companies can’t ignore legal requirements such as Workers’ Compensation or the need to meet local, state and federal regulations covering everything from worker safety to environmental responsibility. HR consulting companies provide both the expertise and the experienced staff to ensure compliance with these programs.

As small and medium businesses evolve, the value of partnering with a HR consulting firm becomes even greater. With proven expertise in recruiting (including interviewing, background screening and salary negotiation) to rely on, a company’s management can instead focus on strategic planning, confident that a consultant is tracking down the best potential hires. By implementing HR best practices, including formal job descriptions, employee handbooks and benefits administration, HR consulting firms help to foster a working environment that entices experienced workers to stay, while attracting the most qualified new recruits.

If you have questions or would like more information about the topics discussed in this article, please contact our HR Department by clicking here. Please be sure to reference the title of the article in your inquiry.

This article was sponsored by National PEO, LLC. National PEO is a leading provider of PEO services to hundreds of companies all over the US. Let us handle the burden of Payroll Services, Benefits Administration, Worker’s Comp, and Human Resources for your company. Contact us today to request a quote!

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