The Best HR Solutions for Small Companies - Human Resources Hero

The Best HR Solutions for Small Companies

Employees Discussing HR Solutions for Small Companies | Human Resources Hero

The definition of the term human resource (HR) solutions means different things to different businesses. But the businesses all share a common denominator. All HR solutions try to incorporate effective employee management.

There are HR solutions that help you cut costs. Some HR solutions also allow you to hire and focus on the people you want and need for your small company. Many HR solutions provide companies with a way to gather business intelligence. 

There are many ways HR staff can help you grow, develop and fine-tune your small business. If you’re a small business looking for the best HR solutions, please continue to read.  

The Best HR Solutions

No company is exempt from needing a good HR department. HR staff helps you find the team members you need to stand out from your competition. It’s also the HR team that allows you to manage your new and existing employees.

Many small businesses don’t realize that HR outsourcing has become a cost-effective way to create the HR solutions you need. The advantages to your company allow for innovation and enhanced productivity. Yet, many small businesses hesitate to work with an HR outsourcing or software provider.

Some of the best HR solutions are listed below so you can learn more about which HR solutions work best for you.

Outsourced Human Resources (HR)

It’s not uncommon for small companies to contract with a professional employer organization (PEO) for their HR outsourcing needs. There are many considerations you need to take into account with a PEO. It is important to remember that PEOs vary in the HR solutions they offer you.  

Every PEO is different, and each offers different HR benefits and resources for small companies. That means if your small company decides to pursue a PEO HR solution, it’s vital you perform due diligence. 

You also need to fully understand the monetary value of what PEO benefits get you. When you engage a PEO HR solution for your business, you may find your workforce is more efficient and effective.

Benefits of HR Outsourcing

1. Professional Employer Organization (PEO) vs. Administrative Services Organization (ASO)

HR delivery models for a PEO vs. an ASO are very different. Outsource PEOs offer companies a complete HR toolbox of services and resources. Small businesses can choose from things like:

  • Employee onboarding
  • Payroll management
  • Training staff members
  • Handling HR compliance regulations and more

If you want to outsource an HR delivery model like ASO, you’ll notice you are receiving most of the same services listed by PEOs. One of the key differences is you do not establish a co-employment function with staff members. It’s important to note that employees or staff members are exclusively under your control with ASO.

ASO HR handles things like:

  • Payroll management
  • EIN registrations
  • Tax reports 
  • HR compliance regulations, and more

What HR ASO does not do is become an extension of your small business. Rather they function as a day-to-day administrator of HR functions.

2. Benefits of Outsourcing HR Includes a Return on Investment (ROI)

Small companies do receive a return on investment (ROI) benefit when they use HR outsourcing. Research in this area reports the average ROI for any outsourcing HR PEO for a small business is 27.2% cost saving per year. Outsourcing HR provides value to a small business by attracting and retaining employees.

It also enables small businesses to focus on their day-to-day company operations and not deal with HR issues. Finally, outsourcing HR provides solutions that are cost-saving in general. General cost-saving expenditures include, but aren’t limited to:

  • Health insurance and benefits
  • Unemployment insurance
  • Personnel costs 
  • Company insurance for worker’s compensation

Small businesses also benefit from outsourcing HR even when they use the ASO HR model. ASO administrative tasks like payroll and benefits are a way for your small company to save time and labor.


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3. Types of HR Solutions

Comparison metrics provide the details many small companies need when reviewing different types of HR solutions. Many of the metrics include reports that different HR outsourcing solutions can reduce voluntary and involuntary employee turnover. Many small companies take a financial hit when they have to keep finding, hiring, and training new staff members.

That’s why one of the main benefits of  HR solutions needs to include reducing employee turnover. Your HR solutions should help achieve Once you employ effective employee management, you focus on small business development.

4. HR Solutions Strategic Goals

If you are proactive, HR solutions can enhance your productivity. By enhancing your productivity, you can better meet your company’s strategic goals. Small companies want easy-to-use HR solutions.

If possible, they also want the HR solutions to unison with the software program they already have. Each one of the HR solution types has unique strategic goals. Ultimately, the type of HR solution you select doesn’t only enhance the small company’s HR operations but also provides you with positive business results. 

5. What are HR Solutions?

HR solutions vary based on the size and scope of small businesses and their objectives. Many small companies need Human Resources Management Systems (HRMS). Others prefer to work with a Human Capital Management (HCM) company.

Another HR solution type that some small businesses use can also be in HR administration software or Human Resources Information Systems (HRIS). All these HR solutions’ prime function is to help small businesses create short or long strategic objectives. Often HR solutions help small businesses perform human resource development through training and onboarding.

HR Solutions Call

6. Risk Management as an HR Solution

Even risk management may be considered a function of an HR solution. Also, every HR solution selected by small companies will often have a strategic human resource management plan. The strategic human resource plan is a way for your small business to integrate HR technology and combine business and HR goals.

Integrating HR technology into your HR solutions begins with recruitment and sometimes won’t end until an employee retires. 

7. Costs of HR Solutions

The U.S. Small Business Administration reports that back in 1995, the cost to perform small business government paperwork, tax documentation, and train new employees was approximately $5,000 per employee. Since then, the $5,000 per staff member has gone up an average of 10% per employee. The cost of finding a way to handle government regulations successfully is a financial balancing act.

Your small company needs to ensure it files all the required paperwork while finding and training employees. As a small business, you have to handle insurance, retirement, health care, and wages if you hire employees. When you find a way to improve your productivity and lower your HR costs, it’s a win/win for you.

Ultimately finding the HR solution that works for your company improves your efficiencies. It’s vital that your outsourcing HR solution also includes how you onboard your new hires. Your small business must also be able to maintain and motivates your staff members.

8. HR Solution Software and The Cloud

Every small business owner needs better payroll capabilities. If they can get that, they often seek HR solution software that eases their day-to-day HR duties. If you can customize HR features through software or a cloud platform, you can focus more on your company’s needs.

No matter what HR solution you use, you want it to fit into your company’s culture and IT system seamlessly. The HR small business cycle of every employee needs to have a company system to deal with the cycle’s priorities. By comparing the types of HR solutions available, you can optimize your business costs and benefits.

There’s no substitute for finding a way to manage your HR small business needs efficiently. These benefits help free up critical time for small company leaders. Small company business leaders can use this free time to help find winning strategies for their business. 

Finding the HR Solution Your Small Business Needs

Every small company grows and develops by maintaining business integrity and placing a high value on its operations and staff. They develop and maintain this integrity and high-value partly through employee recruitment, training, onboarding, and policies. Sometimes the HR solution for a small company is outsourcing through PEO, ASP, or a hybrid of both.

It’s critical to understand that the best HR solution you get will match the needs of your small company’s growth, diversity, and development. Outsourcing your HR solution can take your business to the next step. By reaching out to Human Resources Hero you can take your HR capabilities to the next level. 

Human Resources Hero provides the research you need with HR solutions you want. Human Resources Hero will help you find an HR outsourcing match for your day-to-day operations. An HR service partner that’s a perfect fit for your small company. 

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