Why Change from do-it-yourself HR?
Let’s face it: you didn’t enter into business to manage human resources. And yet, because HR is complex, precious time and resources are used up as you handle it in-house. Why is "do-it-yourself" HR so overwhelming? Here are six main challenges that small businesses often cite:
1. Doing HR right can be time consuming
Tasks will include: benefits planning, recruiting, training, managing personnel files, payroll, performance reviews, managing leaves and lots more HR administration issues.
2. Explosion of benefit plan choices
Should your company offer HMO, PPO, POS, HSAs, FSAs, Life Insurance, STD/LTD, Retirement Plans, Commuter Plans? Which plans will fit the needs of your employees best? Which benefits will attract top talent?
3. Many 3rd party relationships to manage
You will have to manage: a payroll vendor, state tax authorities, health insurance brokers, health insurance carriers, voluntary benefits, recruiters, compensation data, employee handbook/policies, outplacement, legal guidance, and many others.
4. Many regulations
COBRA, FMLA, ADA, OSHA, EEO, WARN, HIPAA, ERISA, FLSA. Can you keep up with all the latest federal and labor laws specific to your region?
5. Lack of negotiating leverage
Small businesses don't have negotiating power when dealing with large insurance carriers and other vendors. And the end result can be the lack of control over escalating costs.
6. Too much paper and inefficient manual processes
You're drowning in ad-hoc processes requiring lots of manual effort and paperwork. And you have to make sure all the people involved have copies.