Most businesses with fewer than 50 employees don't have a designated human resources (HR) manager, let alone a full-fledged HR department. Instead, business owners often hand off HR tasks to employees who have little or no experience in the arena or simply tack them on in addition to an employee's regular job requirements.
Either way, these methods don't produce the best results. A better solution, which more and more small businesses are discovering, is outsourcing HR tasks to professional employer organizations (PEOs). PEOs can handle a single HR assignment or cover the gamut of HR duties. Outsourcing your HR needs can:
The best contacts and resources to help you get it done
Get to know PEOs
PEOs provide a wide range of HR services, including: payroll; risk management (workers comp, safety inspections); HR management (recruiting, hiring); and employee benefits (health care, 401(k) administration).
I recommend: Discover how to select a PEO at the
National Association of Professional Employer Organizations (NAPEO), which also includes a search function to
find a PEO in your area.
StaffMarket.com provides an overview of the various types of PEOs, the services they provide and their pricing methods.
HROplus offers free assistance in helping businesses locate the best PEO for their needs.
Outsource employee benefits administration
By outsourcing benefits administration, you not only save time, but you also gain bargaining power for competitive rates in health and dental plans, flexible spending accounts, 401K plans, employee assistance plans and life insurance.
I recommend: TriNet offers all benefits administration and manages annual enrollment for companies large and small.
Administaff handles adoption assistance, credit union membership and educational assistance in addition to typical employee benefits, such as health and dental plans.
Outsource recruiting and hiring
Streamline the process of hiring new employees by outsourcing the recruiting process.
I recommend: Locate headhunters, executive recruiters and staffing agencies in your area by searching the
Headhunters.com directory. Find out how to choose a staffing firm at the
American Staffing Association (ASA) Web site. Search the
ASA database by location, type of placement and occupational category to find a staffing agency that fits your needs.
Outsource risk management
Risk management refers to the development and administration of safety programs and workers compensation programs.
I recommend: Workforce Solutions provides job site safety inspections, development of safety and workers compensation programs and assistance in OSHA record-keeping.
HR By The Hour supplies HR support as you need it in areas such as sexual harassment training, legal terminations and preventing employee lawsuits.
Outsource payroll
Handing off payroll functions is one of the oldest forms of HR outsourcing and also one of the most important.
I recommend: ADP, one of the leading payroll companies, has a small business division that provides the specific services, tools and resources you need.
SurePayroll offers online payroll management for small businesses and enables you or a manager to input employee hours and, within minutes, print checks or have money direct-deposited.
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