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 for Small Companies

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.

Woman Explaining the Benefits of HR Outsourcing | Human Resources Hero

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.

Man on an HR Solutions Video Call | Human Resources Hero

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. 

Top HR Solutions for Small Businesses

Regardless of whether you have a handful of employees or dozens, you won’t want to go another day without a competent HR partner in your corner. That’s because if you’re not meeting your employees’ needs with adequate human resources to match, you could be running afoul of the law. In fact, as soon as you hire your first employee, you’ve created an HR need. And while you may attempt to navigate the confusing matrix of human resources on your own or via a mash-mash of various employees picking up the slack, none of it is a viable and sustainable solution.

From onboarding to payroll and performance reviews, as well as soliciting feedback from your employees, HR solutions for small companies are every bit as important as HR for larger brands. But as a small business owner, you may struggle with how to meet that need. Hiring just one full-time person could upset your delicate budgets, nevermind the expense of building out an entire team — and it’s at this point that small business owners start looking elsewhere. The good news is that outsourcing HR solutions for small companies can turn that need into a viable solution for much less than building and maintaining an in-house team, and an added benefit is that you’ll get immediate expertise that you can scale to your exact need rather than waiting for your in-house team to take shape. 

Key Features of HR for Small Business

For many small business owners, an HR outsourcing partner can help alleviate the burden of all those administrative tasks that always seem to sit in the way. From payroll administration to help in identifying and hiring the best talent, addressing underperformers, dealing with benefits and onboarding, a small business HR solution can help you get control of the most important asset your company has — its human resources. But the work doesn’t stop there. The right HR partner can help you train and develop your valuable employees, enabling you to get more value from those resources and create better, more impassioned workers that are in it for the long haul. And if there’s ever an incident or problem in the workplace, your HR partner can spring into action, helping to diffuse the situation and get your employees the assistance and help they need.  During normal, day-to-day operation, an outsourced HR solution for your small business can help you refine your standards of conduct so that everyone knows how they should be behaving in any situation at work. Combined with timely payroll and proper safety measures, you’ll be communicating to your employees that they’re valuable members of the team. Together, it can also help you avoid costly lawsuits and penalties from local, state and federal governments when all of your policies are on the up-and-up.

The Right HR Solution For Your Small Business

Instead of some cloud-based solution that’s little more than a software dashboard, you can avoid the problems of a hands-off approach to HR by bringing in a competent HR hero to help you dial-in your efforts. In addition to their expertise, you’ll get an HR professional that can help you take back control of that fledgling HR department — or to help establish one in the first place.  Here at Human Resources Hero, we’ll help you design the right HR department to suit your needs, whether it’s bringing in an expert, finding the right HR software or helping to build out the competencies in house so that you’re never caught off guard by an HR issue again. Get in touch today to see how we can help.

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