You Have To Be Ready To Outsource Hr-pgd-426

For you, the small business owner, the decision to outsource HR or your human resources department is not one that should be taken lightly. By moving your HR functions to an external firm, you will be drastically changing the organizational structure of your .pany, which, could be for better, or for worse, depending on a number of factors. Although the choice is yours, and do not be mistaken, the choice is a daunting one, there are a number of signs that let you know that your .pany is a good candidate for outsourcing HR functions such as payroll, labor relations, and employee .pensation. First you must identify what stage your business is in. Are you just starting your .pany or has it been around for a while? As small business consultant Dino Eliadis explains, there are 5 stages in the life cycle of a small business; they are as follows: 1. Existence This stage is often thought of as the start-up period of a business, which often is the case. However, even some .panies that have long been established struggle to churn out a profit. In order to reach success, growth and maturity, the small business must be able to at least break even. 2. Survival This is the stage in which the small business a lucrative endeavor and stays alive. The .pany is approaching the turning point in its life-span; your business goes from breaking even to generating profits because you, the owner, are truly invested in it. At this stage, you must up your game by more knowledgeable, and more importantly, more profitable. Otherwise, your business will remain dormant. 3. Success Somewhere between Survival and Success is the turning point I was speaking of. If you have truly upped the ante, as in you have developed profitable systems within your .pany and your employees are efficient and effective, you have reached the success phase of your .panys cycle. Here, your .pany is capable of staying profitable even in your absence. Many times, owners confuse the Success stage with that of Survival; a .mon mistake that can spell the end of your small businesss growth. Survival is dependent upon you, the owner, whereas Success stems from the .pany as a whole. Your .pany can survive if you work hard enough, but you must create systems within your .pany to sustain your small business. 4. Rapid Growth This stage requires a large amount of labor and capital. At this point, your small business can potentially be.e a large .pany or a large bust. If the .pany is monitored to make sure that financial and physical resources can support growth, it can be.e the large, successful business that you desire. However, if this is not done, the Rapid Growth stage can lead to a rapid death of your .pany. 5. Maturity Youve made it. At this point, your .pany has reached a plateau. It has reached its growth capacity and has saturated its market. Often times, corporations at this stage are so large that they cannot react to major shifts in the market and they die out. However, if managed well, an owner can always mix things up to keep things fresh and keep the .pany growing. This is the ultimate goal: keep growing. Once you have identified your .panys stage of development, you can decide whether outsourcing payroll and other HR functions is right for you. Often, outsourcing HR is best suited for the .pany that is somewhere between the Survival and Success stages, but it can also be helpful at the other stages. According to Dr. Lawrence M. Bienati,** in addition to assessing your .panys stage of development, there are two more considerations you must take into account when deciding to outsource HR: your .panys organizational strategy and your .panys organizational size, location, and .plexity. Of course, based on your assessment in each of these areas, you can decide whether your .pany is a good candidate for partial outsourcing, full outsourcing, or no outsourcing at all. Usually, HR functions are divided into categories such as Employee Benefits Recruiting .pensation Employment Law/Labor Relations HRIS and Payroll Management Development Labor Law .pliances Retention of Talent Fully outsourcing all of these functions isnt for everyone, thats why many PEO .panies and ASO or PEOs offer partial and full outsourcing to small firms. Running a small business, though, owners want to focus on the most important thing, making a profit. Often times, administrative tasks and endless paperwork can pull you away from this goal, so a Professional Employer Organization is a useful tool in any stage of development, especially if your firm finds itself somewhere between Survival and Success. This is a pivotal moment when you need to decide whether HR outsourcing will help push your small business to the next level. It should not be too difficult to do this, simply look over the costs and benefits of outsourcing and ask yourself the following questions: How much time do I, as a small business owner, have to devote to HR and .pliance issues? What will allow my .pany to attract and retain the best employees? Is it worth losing control over HR issues in exchange for significantly reducing my HR costs? What is the size of my .pany and what stage is it currently in? Does my .panys organizational structure and direction warrant the use of an outsourcing firm? Will it cost less to outsource my HR functions rather than pay the high cost of consultants? Ultimately, the decision to outsource your .panys HR is your own and should be done after much consideration. First identify your stage of growth. Then weight the costs and benefits. Finally decide which, if any, of the HR functions you think you need to outsource. 相关的主题文章: