Whether you have just a couple employees, or thousands, your employees are your greatest asset.
They represent a significant investment of your dollars, resources, and time. When they are happy, healthy, and qualified to do their jobs, they make your investment in them profitable.
Whether you choose to hire or outsource – it’s important to make sure that the people responsible for your employees are qualified and experienced so you get the best possible return.
Unfortunately, there isn’t a one-size-fits-all answer to whether your needs are best met by hiring our outsourcing.
Outsourcing to an HR Firm:
- Can be a simple way to reduce your internal burden quickly and trust that your needs are handled professionally and accurately.
- Most HR firms are going to include a team of people – so you get a vast wealth of experience and qualifications for a fraction of the cost of assembling a similar team in house.
- In most cases, you can utilize them as much or as little as you need to. You can request of their time when you have major changes internally and they are needed, and you can use them less when you need to as well.
- Many firms also offer a variety of services – so you can scale up or down and use as many or as few of their services as you need.
Hiring An In-House HR Staff
- If you have very specific internal needs, often times they can met with the experience and qualifications that a small Human Resources staff can provide.
- If you have a high rate of employee turnover, or frequently utilize temporary works or independant contractors, then it can be helpful to have someone on staff to oversee things such as job descriptions, employee orientation, managing benefits, and organizing personnel files.
- In-house staff can often do a better job of organizing employee engagement activities – so as staff holiday parties, off-site retreats, and annual surveys.
- They are completely dedicated to your company instead of working for multiple people. This can be a pro and a con at the same time since their scope of experience is often restricted to past jobs and what they do for you. HR Firms have up-to-date experience with many companies that they can apply to your company.
Best of Both…
Combine In-House with Outsourced
Sometimes the best choice for a company is to combine in-house resources with outsourced professionals.
Your in-house talent might be an office manager, or even a small staff of HR professionals. They can handle some of the general in-house responsibilities that are best done internally, and then offload the tasks to the outsourced professionals that are best handled by them.
Some of the tasks that are most commonly outsourced to an external HR team are:
- Benefits Administration
- Wellness Benefits
- Employee Recruitment
- Development of Employee Handbooks & other documentation
So… what is “Normal”
The general rule of thumb is that you need at least one HR professional for each 100 employees you have.
Your company is unique, so you really do need to evaluate your needs, resources, budget, and experience level and make the best decision for you… but there are some general guidelines that most companies fall into.
- Companies under about 50 employees tend to outsource almost all of their HR tasks.
- Over 100 employees, they tend to have at least one generalized HR person in-house and outsource more specialized duties.
- With several hundred employees, companies will have a generalized HR person, and one or two specialized people in-house, and will outsource other specialized responsibilities as well as use outsourced talent to “fill in the gaps” when they need extra man-power.
Whatever your needs, if you find that you or someone on your staff is getting overwhelmed with managing your team to the point that it’s interfering with them being able to do their job correctly and in a timely fashion, then it’s time look at getting some help.
How do you know when you need help… Read our article about it 🙂
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