Options for Handling HR
You have three basic options in regards to who can handle your HR function:
Do it yourself
The upside is you control everything, which keeps costs
low. The downside? You don't have the time to do it all—not when generating business is the main priority. In addition, you own all the liability. One missed deadline or misunderstanding of a regulation, and you could damage your business.
Multi-vendor
Outsource to multiple vendors-- one for each specific task and area of expertise such as payroll, benefits, 401(k), and so on. The upside is you get experts to do the work, which saves you from doing HR administration tasks yourself. The downside is the amount of time spent managing the vendor relationships and eventually your lack of control over long-term costs.
Single Vendor/PEO
You could use a Professional Employer Organization (PEO) as a single vendor HRO solution.
You get increased efficiencies, an improved employment brand, and a renewed ability to focus on the core business.
The upside? You manage a single relationship and gain HR expertise, HRIS technology, and a qualified team to manage your HR function. However, the downside is you must find the right HR partner—one that tailors its services and cost structure for your specific industry—because a wrong choice is a costly one.