Dear Evil HR Lady,
I run a small business with around 45 employees. I’m in the restaurant/retail/convenience store industry. We are looking to keep expanding the food end of our business with more restaurants. From what I have been reading my company is supposedly right in the sweet spot for outsourcing HR. I want to provide the best for my staff while remaining profitable enough to grow my business and have an edge on my competition. What are your thoughts on outsourcing HR?
To read my thoughts, click here: Should You Hire or Outsource HR?
As an HR person who has worked for both small, privately owned companies, as well as large corporations, I would say please, please, please make sure you are being honest with yourself as a business owner as to how you see the Human Resources function fitting in to your personal style of leadership. Don’t hire someone for HR and then basically limit their authority to just making sure the paperwork is completed correctly and on time. If you do not see the value of what an HR professional can bring to your organization; and/or you are not the type of leader who can assign a department and “let the person run with it”; then you should definately outsource the function. Should you decide to hire someone directly, be as honest and up front as you can during the interview process. Let each applicant know as much as you can about how you honestly see the position fitting in to your Leadership Team. If it takes a while to find the right candidate, then so be it. Everyone will be happier in the long run.
This describes my situation to a T. My education, certification, and work experience are all in Industrial Psychology/Human Resources. When I was laid off from my HR Administrator position several years ago, I was hired by a small company that needed HR expertise, but didn’t need it a full-time person. So, I was trained in the business itself, and took on several accounts in addition to handling the HR responsibilities. We’ve since doubled in size in number of employees and annual sales, and I’ve been a part of it from the ground up. The owner includes me in all of the major decisions, and I work closely with the other managers to ensure that we are not just following the law and providing benefits, but are addressing issues such as talent retention, employee engagement, succession planning, and training and development. And, because I am also trained in the business itself, I have even more credibility. It’s been a win-win for both of us.
I agree with Miss Sharen’s comments. Also like to know more about the cost structure of outsourcing vs. inhouse – given that you expect to grow considerably in the next 3 years and recruiting will be part of that. What may seem like a cost savings now may no be so as your growth changes.
It is not about the small or big business. It is about the management of the man power which you are using. What I know is, if you own something then it is necessary to manage that. And, this is what the HR will do for you.