10 Top Signs It’s Time to Outsource HR!
Posted by Marcia Zaruba O'Connor on July 9, 2019
We get asked quite frequently when is the best time to outsource the HR function. Well, it’s not really a one-size-fits-all answer. As a matter of fact, we have come up with ten scenarios that we believe suggest – YES, it’s time to outsource HR! Here are our top ones!
1. Fast growth – suddenly you have 20 people on the team
A fast-growing company is exciting and scary at the same time! New people are coming aboard quickly and the sheer number of forms they must complete in a timely manner is truly overwhelming. There are several forms that must be completed within three days and done accurately. Here is one of the main problems – the I-9 is a Federal Form that MUST be completed within three days after a new employee begins with a company. The number of mistakes that we have found on these forms is overwhelming. We can fix them.
2. You think you can’t afford an HR professional
Why do you believe you need to hire someone at 40 hours a week? Many of our projects start with as few as 8 hours a week with the amount of work they need to do. Our job is to make sure all the necessary forms and compliance are in order for you to grow your business. Keep in mind you can always add on more hours the larger your business grows. That’s our job – we like to make sure everything runs smoothly for you!
3. You need to update your handbook – oh, that’s right, you don’t have one
Okay, so maybe you think you are too small to need a handbook. Well...as soon as you have one employee... you DO need a handbook! A handbook is a guide to help your employees understand what the CEO (you) would like your company to look like and how you want employees to behave. It’s the one document an employment attorney will ask about if anything happens, such as a lawsuit or an employee relations issue. You don’t have to spend a ton of time on it either – sometimes we come in to create it or update it! We highly recommend reviewing and update your handbook every three years.
4. Consistent On-Boarding
With the current hiring trends, it only makes sense to make sure your onboarding is top notch and consistent. I shake my head when I hear that people show up on their first day of work to find no direction or guidance. And, of course, after 60 or 90 days, the company is caught short because that new hire is now leaving. On-boarding should be one of the best experiences a new hire has. New hires are mini marketers for your company. The best employee referrals are from new employees within the first six months of joining a company – so spend some time in putting a great program together! And again, you can outsource this!
5. New employee files
Yes, you do need to separate the employee files from their medical information. Many companies under 50 employees still use the paper system. It’s important to have a checklist and even more important for each form to be completed accurately. Don’t assume that new employees will understand what needs to be completed. We also have helped several companies with installing a strong— but inexpensive— HRIS system so that they can ensure all the forms get completed and there is an audit trail!
6. HR Compliance
Compliance, compliance, and compliance. Yes, it’s annoying, but somebody must do it. That somebody is usually the HR department. We work with our clients based on the number of employees – each tier of growth (20, 30, 50 employees and more) adds on several new areas of compliance. Our consultants know the drill– don’t play Russian roulette with compliance. Outsource 8-16 hours a week to make sure you sleep better!
Benefits are still one of the best ways to attract new hires. Since there are so many changes to coverage, it’s important to have an HR professional who knows what they are doing and what they should be telling your employees! We like working with third-party vendors, but they, too, like having one person at the company they can speak to about what is needed and the enrollment around the forms!
8. Training – especially around sexual harassment and ethics
Ever since the #MeToo movement, we have been getting calls from our clients to ask what we can do to provide training to their employees – and yes, we can help you with this. If you have an HRIS, you can put together an audit trail so that you know all of your employees are in compliance.
9. Employee Engagement
Often with our clients, we begin by conducting an employee engagement survey where we speak to every person in the company to find out what’s going on and whether they’re happy with the company’s current processes. Nine times out of 10, the CEO is surprised to read the result, because they usually wear rose colored glasses. Not only is it humbling to see what your team is thinking, but when you read the results, we work with you to put a plan in action to resolve the issues.
10. It’s just time
We once had a client that called and, after we went over all the areas in which they needed assistance, decided they were fine getting by with several people helping... well...six months later they called again, in panic mode, wondering how soon we could start. We knew they needed us six months earlier, but we can’t make you drink the water, we just bring you to it. Of course, they also needed 24 hours a week instead of 8 and yes, they were a mess! So we spent a lot of time sorting out the issues there, until they finally decided to hire a full-time consultant (yes, it was one of our consultants)— but it all worked out in the end!
These are just our top ten of the many reasons why we are asked to meet with a client, but it’s time for you to start thinking outside the box. You can hire a consultant to start for as little as 8 hours – isn’t it worth the investment?
This information is provided for informational purposes only and should not be taken as legal advice. The O’Connor Group makes no representations as to the completeness, suitability, or validity of any information contained herein and will not be liable for any errors or omissions.