A tough decision for many small business owners today is deciding on the right time to hire an HR professional. Most business owners have navigated through funding, have established their customer base, have a strong idea of what they want their company culture to be, and have a plan in place to grow their business. However, they may be uncertain as to when is the right time to add an HR professional to the mix.
There are many questions regarding the timing of hiring an HR professional: Should I wait until there is a crisis that warrants hiring someone? Do we need an HR pro to help us enhance our benefits? We haven’t had a significant compliance issue; maybe I don’t need someone yet. Maybe I’ll wait until we reach X number of employees… The list goes on and on.
It is a good time to hire a professional when you, as a business owner, begin to experience one or more of the following:
- You are overwhelmed with administrative processes
- You are not 100% confident that you are following employment regulations
- You want access to HR expertise
- You don’t have the financial resources to build an HR infrastructure
- You are about to undergo a growth phase
A cost effective solution to hiring an HR Professional is hiring a Professional Employer Organization, or PEO. A PEO can streamline the administrative processes of payroll, time keeping, benefits administration, and employee data administration. A PEO can ensure compliance with all federal and state regulations. Partnering with a PEO also can give a business owner access to certified human resource specialists, along with experts in payroll, risk management and benefits.
Building an HR department can be time consuming and expensive, costing up to $200,000 or more. A PEO can provide a wide range of services and offerings at a substantially lower cost than building an internal HR department. As a business owner, do you know if your current HR infrastructure will support 20%, 30% or 50% growth? A PEO can implement a turnkey solution that can scale as your business grows, and resources can be dedicated to your core business activities.
PEOs help companies improve productivity and increase profitability, while letting owners focus on their core business. PEOs can also help reduce turnover and attract better employees by providing big-business benefits such as 401(k) retirement plans, health, dental, vision, employee discount programs and more. According to the National Association of Professional Employer Organizations (NAPEO), businesses grow 7% to 9% faster, have 10% to 14% less turnover, and are 50% less likely to go out of business.
When is the right time to hire an HR professional? The time is now. Human Resources is too critical to delay. Evaluate your HR and employee administration needs today, and invest in the proper resources.
Regardless of whether an in-house HR manager is the best solution for you, or seeking a PEO partner for your HR, benefits and payroll needs is a better option, don’t delay. Contact the author directly at email@example.com or call 1.800.771.7823 for a complimentary HR evaluation.
Image: Aleksandr Davydov