Focusing on Human Resources from a small business standpoint can be overwhelming, especially if you are not up on all the current laws and requirements. While many companies try to continue remaining compliant, HR is a part of a small business that get swept under the rug. Rightly so! With under 50 employees, small to medium sized businesses are working hard on growth, increased sales, and product advancements.

Here are the top 5 reasons small businesses outsource their Human Resources:

Knowledge about HR Changes / New Laws

Each year there are new state and federal laws for businesses under 50-employees. Knowledge about these laws is important and can take numerous hours to make sure the company and employees are in compliance. On top of knowing about these laws, knowing how these laws impact your business specifically can take some interpretation and adjustment. The ability to have someone on hand to answer these questions and bring new laws to light is important.

Creating Employee Handbooks

After understanding laws, the employee handbook should be updated to reflect the new law changes as well as any internal business changes throughout the year. Having a comprehensive employee handbook protects your business and holds your employees compliant.  Dealing with an employment issue, without a comprehensive employee handbook can become difficult and overwhelming very quickly.

Help with the Hiring Process

The hiring process can also take valuable time on top of just the interview. This includes background checks, job descriptions, forms, letters, and HR documents. Understanding the hiring process can be difficult as business owners need to stay up-to-date with appropriate questions and job offer letters. Companies outsource this process to ensure they are not only compliant, but to reduce the time from start to finish in a new employee hire. This ensures that the candidates are not being hired into another position and allows that new employee to start faster.

Easy Harassment Prevention Training

To remain compliant, business owners are encouraged to put their managers and employees through harassment prevention training. These courses can be created internally, but many times these courses are overlooked and not completed. Having this area outsourced or using a webinar/online training can help become compliant in this area.

HR Compliance Questions

Many times a business owner has an issue and does not know where to go or who to turn to during the problem. With an outsourced HR department, it becomes easy to send a quick message into the company and know the response is compliant and quick.

HR Ledger offers a reliable HR outsourcing product called HR On-Demand. This product gives a business owner access to a HR Professional to answer their questions without having to pay for a full HR employee. HR On-Demand is easy and affordable for HR Ledger customers and clients.