The multi-faceted requirements of human resources (HR) can present problems for even the most successful organizations. Small businesses that handle HR internally tend to neglect important day-to-day HR tasks required to run a successful business. Instead, help your business thrive by working with a human resource management (HRM) company—a company that helps manage your HR processes skillfully.
Here’s everything you need to know about human resource management and how it can boost your business operations.
First, let’s cover the basics of HRM. While each industry is different, there are certain HR functions any company deals with, large or small, including:
Employee satisfaction and retention
Generally, a human resource manager position may require a bachelor's degree. Some institutions even offer specific human resource management degrees and there are many HR certification institutes.
If you’re looking to outsource your HR, you should consider a reputable company that offers industry-specific HR solutions. A good HR strategy begins with your recruitment process and extends through performance management, employee development and ongoing communication.
It’s important not to underestimate the impact of HR on your business. While you might think that you can handle things internally, outsourcing your HR may offer a multitude of benefits. Partnering with a human resource management expert can help secure top talent, create a stronger onboarding process, improve employee retention, elevate employee benefits, deal with fewer compliance issues and provide access to HR experts. Each of these benefits can help save your business valuable time, energy and money.
Attracting industry-leading talent takes a big commitment. Talent management requires time, energy and finances. Labor statistics show that on average, it takes about 27 days to hire someone, but the best candidates are off the market in 10 days. If your business is more technical or in a specific niche, this timeline changes. Once you find a qualified candidate, you’ll still need to conduct interviews. If you or your HR manager don’t ask the right questions during this process, you might end up hiring the wrong employee. Estimates of the cost of a bad hire vary, and can increase the longer the employee is employed.
Instead of wasting time posting job openings to irrelevant job boards and creating generic job ads, you can work with a professional employment organization (PEO) to help you attract talent. By defining your company culture based on your mission, vision and values, you’ll attract the best talent. You will have access to industry-specialized expertise and insights that will help you make informed hiring decisions.
Even if you find the perfect candidate, onboarding can make or break their future. Your onboarding process is not only meant to prepare your new hire for success, it’s your chance to make a great first impression. If handled poorly, that important step in onboarding may have adverse effects. It might even set your new hires up for failure. By working with a PEO, you’ll have access to expert guidance and time-tested onboarding procedures so your new employees can hit the ground running.
High turnover rates can cost your business money, and it can discourage top talent. Unfortunately, many small businesses don’t understand why the turnover is occurring. Strategic human resource management companies can help you understand the reasons for turnover with a detailed analysis of compensation in targeted markets. While you might need to increase the salary for certain positions to retain talent, you’ll save money in the long run.
HR solutions from a qualified company can help to boost employee engagement and employee performance. Real-time feedback may uncover hidden or external factors, help find solutions to problems and help your employees feel valued. By using proven performance management tools, you’ll retain productive employees and create more effective teams. Strategic team building can lead to increased workforce productivity and higher profits. And with continuing education opportunities, you’ll give your employees resources to stay up to date on industry specifications which can lead to deepen their commitment.
Small businesses are often limited in their employee benefit packages offerings. When teaming up with the right PEO, your business size no longer limits the benefits you can offer. You’ll receive access to a variety of insurance carriers with options for spouses and pets, plus employee perks. This will help keep current employees happy while attracting the industry-leading talent you need to grow.
TriNet works with industry leaders in the benefits category and that includes access to premium benefits that extends beyond medical, to dental, vision, life, disability, retirement, transit and wide range of voluntary benefits.
Your small business can offer more desirable employee benefits. Plus, you can rest assured that TriNet-sponsored medical benefit plans meets Affordable Care Act (ACA) minimum value and benefit requirements. You’ll have expert support and guidance to navigate this complex environment, a plan administrator to accept fiduciary responsibility and peace of mind knowing that your medical plans meet coverage requirements.
A small business, and HR departments, must comply with hundreds of rules and regulations. If you’re not well-versed in this area or don't have an HR department, compliance becomes a full-time job in itself. You’ll need to ensure your company is in line with all of the applicable rules and regulations that impact employment and employee relationships. This includes everything from hiring, benefits, payroll, and termination.
Even the smallest companies are required to uphold compliance regulations. This can take away valuable time and energy from running and growing your business — especially if you have only a few employees. By outsourcing your HR, your business will have the HR resources to help with the ever-changing employment-related regulations and compliance obligations. Human resource experts will be there to help as your HR ally and assist with federal, state and local regulations while helping with certain employment-related inquiries.
HR can be more difficult when you depend on office-based resources to get things done. Teaming up with a PEO, like TriNet, you will have access to a comprehensive HR software platform with self-service and mobile tools that allow you to manage your HR in real time. This allows you to save time while accessing the insights you need to make better decisions.
Your employees will benefit from an HR technology platform as well. They’ll be able to view pay stubs, make changes to tax withholding forms, enroll in benefits, update direct deposit info, request time off and more. This technological integration gives you access to the HR data you need anytime, anyplace.
One of the most beneficial aspects of partnering with an HRM company is the time and energy you can save. By working with a thought leader for your HR requirements, you’ll free up valuable time to grow your business.
The first step in benefiting from HRM is making the decision to do so. According to SHRM, 54% of small businesses handle human resources internally. By teaming up with a PEO like TriNet with full service HR solutions, you can focus more on your people management and strategic business objectives. TriNet helps streamline HR complexities and offers access to human capital expertise, benefits, payroll, risk mitigation and compliance, and real-time technology.
Contact us to learn more about how your small business can benefit today.
This communication is for informational purposes only; it is not legal, tax or accounting advice; and is not an offer to sell, buy or procure insurance.
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