5 Tips for Outsourcing HR

So your startup is beginning to grow which means new hires and more employees to keep track of. As a business owner there are many other aspects of your company to keep up with apart from new human resource standards, laws, and just overall personnel management.

It’s important to have a process in place that helps to manage this aspect of your business. The people who work for you are important, after all. However, as a small business or startup having an HRdepartment may be a bit out of the question, which is why many companies turn to outsourcing this piece of their business puzzle.

If outsourcing HR is the route you, as a business owner, decide to take, there are some things to keep in mind. Let’s cover some tips that will help you better understand and complete this process.

1.    Do your due diligence

This may be one of the most important tips especially if you’re using a freelancer. It’s necessary to know the history of the person or persons that will be running the human management functions of a company. It’s a good idea to get a sense of what their past experiences are.

Think about asking the potential freelancer to provide some references that can be contacted in order to get a sense of how they were as an HR manager. How their communication skills were. How they handled certain situations.

A good idea would be to perform a background check to get the full scope of who they are as an employee, where they’ve previously worked, and any other information pertinent to you, as an employer.

2.   Look for reviews and check customer support

If you are to have an external company handle your HR, a great way to find a good fit is to check reviews from previous clients. However, you must do your research. Simply finding the company’s testimonial page may not be the best representation of the company. As you could expect, they’ll only display the best testimonials.

Try contacting their customer support. See how quickly and efficiently they respond. Do they answer your question with the best solution to your problem? You need to have a readily accessible HR company to exchange information about important issues with ease. Take your time finding the best fit for your company.

3.    Outsource only what you need

Identify what your company needs at that moment in time. If you have the talent acquisition portion of your HR covered, it may not make sense to outsource every aspect of human resources. You may end up wasting funds that could be distributed elsewhere to help with the growth of your company. It’s important to assess what your company can take care of in house and what needs to be outsourced.

4.    Be transparent

Once an HR freelancer or company is engaged, it’s important to be completely transparent with what you need from them. Provide all necessary documents and information to help them do their job to their best ability.

This may seem like a no-brainer, but it’s easy to forget some things during the craziness that is running a company. They may be specialists in HR but they aren’t specialists in your individual company. Simply hiring them and saying, “they can handle this,” won’t cut it.

5.   Work to understand how they work

Understanding the way the HR company or freelancer works is just as important as them understanding how your company works. There must be a great level of cooperation and compromise from both parties. There is no way for this relationship to work if the HR consultant can’t work the way they work best. On the other hand, as a business owner, there must be standards for them to follow to fit your overall productivity.

Take the Next Step

Human Resource companies work to improve businesses. They are a vital aspect for keeping a business running smoothly. If you chose to outsource the HR responsibilities, it’s more than just simply finding a good candidate and saying, “Here, manage my employees”. They must be a good fit for what your company and employees need. Take your time with this process; doing it correctly should greatly improve productivity.

Haku Kapule

Haku Kapule is a contributing editor at 365 Business Tips, a new blog that prides itself on presenting the best advice and practices for small and medium-sized businesses everywhere. He’s passionate about finding and offering useful tips to small business owners. He is an expert in digital PR and marketing strategy and has assisted with the increase of digital presence and customer support for small and large companies alike.