Key Benefits of Implementing HR Support Services in Small Businesses

Managing HR responsibilities can be time-consuming and complicated. In many small businesses, the breadth of HR demands may be more than a single person or non-HR-specialist employee can handle alone.

Rather than hire full-time human resources staff, some companies turn to professional employer organizations (PEOs) for support. The benefits of implementing HR support services are clear: streamlined administration, reduced risks and improved productivity.

Streamlined Administration

HR support services help businesses save time by taking over many of employee paperwork’s manual and administrative tasks. Whether it’s completing payroll taxes, navigating complex labor laws, or generating reports for businesses, an efficient and experienced HR team can make a big difference.

A good HR service provider can also ensure that all compliance issues are handled professionally and efficiently. This includes ensuring that local, state, and federal regulations are followed. They can also guide labor law compliance, which can help to reduce the risk of costly errors and fines.

Another way that a provider of HR services can also help streamline administration is by reducing paper waste and implementing an online system. This allows employees to access important information and forms in a single location, saving time. It can also be a great way to improve communication and promote transparency.

Using an easy-to-use HR software system can also help to improve employee satisfaction. Employees who find it easy to use can save time and be more productive. An HR system can even allow employees to request time off from anywhere with internet access.

Streamlining service delivery requires time and effort, but it is possible. Gartner recommends starting small, such as with a well-documented process with a potential ROI, like payroll or benefits administration.

Reduced Risks

Managing human resources is time-consuming and potentially risky for business owners and managers who aren’t HR specialists. For example, payroll administration is a complex process with many potential errors that could lead to costly fines and penalties if not done correctly. An experienced HR consultant can handle these tasks and ensure compliance with regulations while eliminating the risk of error for the business owner.

Another potential risk is high employee turnover rates from ineffective management or unclear job descriptions and compensation in the marketplace. An HR consulting company can help reduce these problems by conducting an in-depth analysis of employee surveys and creating a targeted action plan to improve retention and attract top talent.

The right HR solution will vary based on the size of your business and projected growth. For smaller businesses, an HR outsourcing company may be a good option for handling administrative HR needs. These services include everything from new hire processing to employee onboarding and performance management.

A more comprehensive HR solution for small businesses would be a PEO (professional employer organization). These services act as the “employer” of record, contracting with employees and overseeing all aspects of HR, including payroll, taxes, worker’s compensation, and compliance. Many small businesses find this an attractive option because it removes the burden of HR from their shoulders while reducing the risk of fines and lawsuits.

Increased Reliability

HR support services help companies to stay on top of changes in employment laws. They also ensure that businesses comply with labor regulations, helping to minimize the risk of costly penalties due to accidental non-compliance. In addition, third-party HR service providers can manage many of the more mundane tasks associated with employee management, including payroll processing, compliance, benefits, and more.

Hiring and maintaining in-house HR teams is expensive, especially for small business owners who must also cover the cost of salaries, infrastructure, and technology. Outsourcing to a third-party provider allows business leaders to pay for only the services they need, scaling up outside support when needed and ramping it down when the demand is low.

A good HR support service will have a ticketing system that lets employees submit and track requests. This helps to reduce the burden on internal HR team members and provides a way for them to measure performance over time. For instance, an omnichannel ticketing system can let HR teams know which articles in the knowledge base are getting the most views and help them respond quickly and effectively to employee issues or questions.

Whether your company needs help with compliance, hiring, or managing employees, the right HR support can make all the difference for your business. Choosing the right partner will enable you to focus on your business goals instead of on administrative tasks and paperwork.

Increased Efficiency

HR services are a vital part of any company. They help recruit and retain top-tier talent, connect with employees, stay on top of rules and regulations, and improve the bottom line. However, many HR-related tasks can quickly become overwhelming, especially in small businesses.

Having a dedicated HR team that takes care of routine administrative functions frees up valuable time for your team to focus on strategic contributions to the business. This is important because it prevents a focus on mundane data input or forms processing, which can prevent critical business functions from slipping through the cracks.

HR outsourcing companies provide a full range of services for businesses of any size and industry, including processing payroll efficiently every pay period, eliminating the majority of paperwork, and ensuring compliance with complex payroll tax laws and worker’s compensation regulations. In addition, these firms may offer an employee self-service portal to simplify benefits administration and help employees understand how their deductions affect their paychecks.

Other responsibilities of HR teams include:

  • Creating an effective employee orientation and training program.
  • Developing career growth solutions for employees.
  • Conducting ongoing performance management.

These initiatives directly impact the caliber of your employees and can ultimately determine the success or failure of your business. In addition, a professional HR service provider can help your business adopt best practices for diversity, equity, inclusion and accommodation (DEIA). These services are necessary in the current business environment, where attracting and retaining top-tier employees is critical to success.