As your business grows, so too does its needs. Many internal responsibilities and external requirements come along with having more employees. Typically, a human resources (HR) department handles these matters. While not every organization has or needs an entire HR team, there are still many essential people-related tasks to manage.
This is where an external HR resource can help. They can handle critical functions (like payroll or compliance), advance strategic initiatives, manage projects (like technology implementation) and identify efficiencies to improve processes and performance.
All of this may sound great, but how do business owners know when it is time to explore outsourced HR services? Here are a few common scenarios that indicate it may be time to start seeking more support.
1. You’re having trouble keeping up with new regulations.
COVID resulted in many changes to the workplace, including various new rules and regulations. This regulatory complexity forced many organizations to seek outside HR support to help manage it all in-house. An HR advisor can help you decipher and apply these and other regulations and ensure your organization stays compliant.
2. You’re faced with an HR issue or emergency.
Companies often don’t realize they need HR consulting services until they are faced with an employee complaint or grievance. If not handled correctly, employers could be vulnerable to lawsuits or an Equal Employment Opportunity Commission claim, both of which can cause costly fines or reputational damage. An experienced HR advisor knows how to handle these types of situations and can provide the necessary guidance.
3. Your CFO needs a break.
In smaller companies, the CFO often doubles as the HR manager. This model is not sustainable as the organization grows and it becomes trickier to cover the responsibilities of both roles. This is an ideal time to explore outsourced options if hiring an entire HR department doesn’t make sense or isn’t financially possible. Depending on size and scope of need, a company can add a single external resource or small team of experts.
4. Your headcount has reached 50 or more employees.
While smaller companies can often get away without a dedicated HR professional on staff, having input or an HR resource becomes essential as headcount grows. Once a company reaches the 50 employee mark, more regulatory requirements take effect, such as the Family and Medical Leave Act, Mental Health Parity and Addiction Equity Act and Patient Protection and Affordable Care Act, to name a few. An external HR advisor can fully manage your compliance requirements and keep your company on the right side of the law.
5. You’re having trouble filling open positions.
The labor market remains extra competitive and it can be a challenge to find the right people to replace employees or grow your team. Many organizations have tapped into an external advisor for talent acquisition support. From company culture to job descriptions to candidate screening, it can help to have someone dedicated to the full recruiting process and make sure you are well-positioned to attract top talent and avoid pitfalls.
RKL’s Human Capital Management team offers a full spectrum of outsourced HR services to meet your company’s needs, ranging from on-call support to specialized support to full outsourcing. Ready to learn more about your HR outsourcing options? Reach out to your RKL advisor or use the form below to contact us.
