The small business owner is wholly responsible for their business. Whether the concerns of the business be in accomplishing goals for clients or providing customer service, all the staffing and employee management work (such as creating work schedules, training, accounting, and marketing) falls to the business owner or their representatives in order to maintain and grow a successful organization. In the same way a business owner has control over the maintenance and growth of their business, working with a human resources professional or an HR consulting firm can help mitigate some of the more obscure tasks of running a business.
A company’s human resources are the most vital resources of any business. Without reliable and trustworthy employees, a business ceases to run smoothly. Human resources professionals help manage the culture of a company’s workforce. Human resource workers accomplish many tasks in preparing a business and its employees for success.
HR Solutions for the Workplace
Human resource workers (whether they be in-house or part of an HR consulting firm) can manage a wide level of responsibility based on the needs of the organization. Human resources can manage the hiring processes of recruiting and interviewing potential employees, as well as orientation and training of workers. Human resources may also manage the relationship between employee and employer, as well as completing payroll and managing benefits. Human resources professionals work with the leadership team to implement policy changes and to best coordinate the wider administrative functions and duties of a business. Many studies show the relationship between a comfortable work environment and adequate pay and benefits, is directly proportional to the longevity of an employee. Hiring and training new employees is one of the most expensive parts of the business cycle. By working with human resource management, the small business owner and their HR consulting team can work to provide competitive training, pay, and benefits, as well as working together to maintain harmony between employees, providing a safe environment where individuals feel valued.
In-House HR and the Small Business Owner
For some small businesses, it makes perfect sense to hire an in-house human resources team. Small business owners can meet face-to-face with an in-house human resources team at any time, and technical solutions may be processed at a faster rate. Another benefit of hiring an in-house human resources team is that by providing security with benefits, these employees take more of a personal stake in the business. Other legal protections may apply to an in-house worker versus that of a contractor.
However, there are some key downsides to hiring a full team of human resources employees to work in-house. Just like stated above, the most expensive parts of the employment process lies in recruiting, hiring, and training new employees. In some areas, talented and experienced human resources workers come at a premium. In smaller towns especially, finding quality workers can be difficult as many of the best workers are already employed, and enticing new workers to a business may cost extra in wages and benefits, where as a HR consulting firm only requires flat rate or subscription payment based on services provided. Another downside to hiring in-house is that if a team member leaves, then the recruitment, hiring, and training process must start over again, which adds to the bottom line.
HR Consulting Firms and the Small Business Owner
With so many individual tasks on which to focus, smart owners of small businesses understand that engaging with professionals helps to make their businesses run more smoothly. Most business owners already use the resources of outside consultants—from their accountant to their suppliers. In a constantly-changing market and a sometimes-inconsistent workforce, wouldn’t it be just as wise to work with an HR consulting firm?
Outsourcing one’s human resources department is a national trend—from Top Five banks to small businesses across the country. The benefits of working with an outside professional are multitudinous. Consider that a freelance consultant has a professional reputation for strong and consistent work, using a network of contacts from a wide scope of industries and their breadth of experience in order to manage and promote the work of one small business. Most HR consulting professionals have targeted specialties but have generalist skills and are able to manage employees without fear of reprisal or retribution.
As stated earlier, in an in-house hiring situation, the recruitment, hiring, and training process is one of the most expensive factors of in-house hiring. Working with a consulting firm negates those expenses and frees up the business owner’s time spent looking for talent in saturated markets to working with trained and experienced professionals. Additionally, hiring remote workers is more cost-effective because small business owners can hire from multiple markets, using their dollar to take advantage of different prices across the wider market.
At the same time, an HR consulting firm can act to bolster an existing human resources team. Outsourcing work can be great for crunch times or completing large short-term projects. For example, a consultant can help a business find new payment or benefits solutions at a contract price, then train the current team on how to continue down the new pathway, which saves time and overhead expenses. HR consulting firms have to prove their worth to the client, and, unlike in-house workers who may earn a salary or hourly wages, a contractor will provide excellent services to guarantee that they receive a great recommendation or a rehire for future projects.
HR Consultants Are Great Additions to Any Team
Human resources are vital to any business, and understanding the needs of a business is what makes a human resources team successful. By making one’s needs known, and working with others to meet the wider employment needs of a business, working with in-house workers or HR consulting firms, having that extra help to recruit, interview, and train employees, as well as completing payroll and managing benefits.
Small business owners know that delegation is important, and perhaps human resources are one of the smartest delegation choices one can make. By knowing the needs of a business and focusing on the goals of a leadership team, working with in-house or outsourced HR can help to best coordinate the wider administrative functions and duties of a business.
Interested in exploring the options for outsourcing your business’s HR? Check out our helpful guide on What to Look for in an HR Consulting Firm