Business is booming, revenue is rising, and clients are happy. But with significant growth comes new challenges and responsibilities, including human resources. HR only becomes more complicated as your business grows. After all, more employees can lead to increased risk without the proper documentation, policies, and processes.

It can also take a toll on your work-life balance and mental health as a small business owner. Running your company and overseeing HR functions is a short road to burnout. But even when you and your team are maxed out, tasks like employee paperwork, payroll, and benefits administration still have to get done.

Despite exciting growth, hiring a full-time HR employee may not yet be within the budget. And even if you could afford to hire someone, chances are one person won’t have all the necessary skills or bandwidth to handle your entire organization’s HR needs. 

That’s why many small businesses choose to outsource HR functions. This is a much more cost-effective solution: You leave those time-consuming, often stressful responsibilities to a team of experts who will get things done right and on time. Your HR company can also adapt to your business’s needs and budget.

Opting for outsourced HR will protect your passion and bring you peace of mind by: 

• Lowering financial and legal risks.
• Fostering a positive workplace culture.
• Removing a few HR hats from your head.

Lower Financial & Legal Risks

While you can save money by not hiring HR personnel, having none can put your company at even greater risk. 

Outsourced HR is a happy medium for many small businesses, allowing them to avoid significant financial and legal risks. An HR firm will help:

• Prevent and protect you from employee lawsuits and costly settlements.
• Maintain compliance with employment laws and avoid penalties.
• Identify and resolve any potential areas of risk.

For example, all hiring and termination processes must follow labor laws, which can be time-consuming. Employees may also need training in certain areas for legal reasons and to establish a positive workplace culture. Perhaps your business is subject to specific safety training requirements. 

An HR consultant can manage all of the above. Your employees and organization will be compliant with federal and state laws, leaving you with one less thing to worry about.

Foster a Positive Workplace Culture

As your small business grows, you and your leadership team may not have time to provide one-on-one attention to every staff member. This can negatively impact morale if workers feel they don’t have anyone they can turn to about work-related issues.

Someone needs to manage functions like workplace conflicts and performance reviews. These are critical to employee retention and new talent acquisition. 

Outsourcing HR gives you a partner who will take care of these areas. You’ll know you can work ON instead of IN your business. Best of all, you’ll enjoy greater work-life balance knowing you can step away because:

• You have a happy, productive team you trust to keep the ship afloat.
• Your HR company will support your team as needed.

Remove a Few Hats

You already wear many hats, from Operations to Marketing to Accounting…and the list goes on. Wouldn’t it be nice if you could remove a few? You can probably feel the weight being lifted just thinking about it! 

HR projects and functions can be broken down into several specific roles, which can be a lot for a small business owner and their lean team to handle.

Recruiting & Retention

First, it’s up to the HR team to retain existing employees and attract new talent. They are responsible for: 

• Creating programs and ways to measure employee wellbeing.
• Ensuring compensation and benefits packages are competitive.
• Writing clear and attractive job descriptions.
• Having an eye and ear for who will be a good fit for your organization and culture.

Performance Management

HR must assess business performance and use that data to help the company succeed. This entails: 

• Establishing a performance review process.
• Guiding managers in conducting effective performance reviews and employee development.
• Overseeing not-so-pleasant tasks like performance improvement plans (PIPs).

Succession Planning

On the note of employee performance, HR also plays an essential role in creating and maintaining leadership development and succession planning programs. These are critical to retaining and improving the skills of your top performers, who will ideally help lead the organization one day. 

Training Programs

HR should support your business in setting up training programs such as mentorships, workshops, and continued education opportunities. These programs help show employees you care about their development and goals. You will have a skilled workforce of people who want to stay with your company because they feel valued.

Change Management

No matter how long you’ve been in business, you likely understand that the only constant is change. Business is always evolving, from compliance and administrative adjustments to new tools, processes, and skills. These changes can affect both existing and future employees. 

HR must update contracts, policies, payroll and benefits administration, and other practices. Changes may require new/additional training for all or specific employees.

Mediation

When workplace conflicts arise, you need a trained professional to help all parties reach a mutually beneficial resolution. Disputes can range from two employees who simply don’t get along to sexual harassment, theft, and everything in between. HR must be a neutral party who can conduct a fair and impartial investigation and even conduct terminations if necessary.

Maybe you haven’t had to deal with all these areas yet, but you will at some point — and eventually, it will be tough to balance all these HR hats on your own. Outsourcing HR, however, means you don’t have to handle everything on your own. Instead, your HR company will manage all these areas smoothly and efficiently because they have a team of experienced practitioners with diverse backgrounds.

It is possible to run a thriving business and do what you love while enjoying a work-life balance! A vital piece of this equation is knowing when to invest in the areas of your business that are outside your zone of genius. Outsourced HR is a powerful way to achieve that harmony, protect your company, and ease the burden on your existing employees.

Find out how BlueLion can relieve stress and give you the freedom to take your business to new heights when you speak with one of our HR experts at 603-818-4131 or info@bluelionllc.com.

Does outsourcing human resources make the most sense for your business or organization? What exactly can a third-party HR firm do for you?

Many startups or small organizations choose to outsource HR functions in their early years or even forever. It can be significantly more cost-effective than staffing an internal HR department. Plus, you’ll receive focused attention from a team of experts who will — most importantly — help you remain compliant with employment laws.

Outsourced HR works particularly well for small businesses and nonprofit organizations. Whether you have a one-time or ongoing need, there are many options. A reputable HR consulting firm will help you find one that suits your needs and your budget.

Outsourced HR for Small Businesses

HR functions fall into one of three general categories, so you’ll need to determine what type of HR outsourcing your small business needs. The three categories are:

• Administration: Includes payroll, taxes, insurance, hiring and termination, benefits. There are many HR software solutions that can help in these areas, as well as companies that offer specific administrative HR support.
• Employment law compliance: Includes legal and regulatory issues, such as ensuring your employment policies and job descriptions are legal, ADA compliance, and FMLA management. Some companies need ongoing help in these areas, while others may only have one-off projects.
• Employee performance: Includes performance reviews, recognition, training, performance improvement plans (PIPs). Again, these could be ongoing or one-time needs.

When you have employees who are not HR experts spending time managing (or trying to manage) HR tasks, that’s valuable time in which they could better be using their skills. It affects their productivity and your business’s overall performance. 

Outsourcing HR functions can significantly help reduce stress and distractions for employees from their core job responsibilities. In some cases, the right HR software and external HR firm are sufficient for small businesses until they reach 200 employees, according to Software Advice.

By outsourcing HR for your small business, you can: 

• Save time and improve productivity.
• Lower costs.
• Reduce risks and ensure employment law compliance.
• Maintain proper payroll processes.
• Enhance employee development.
• Provide better employee benefits.
• Gain an outside perspective.

Discover all the benefits of outsourcing HR for your small business.

Outsourced HR for Nonprofits

The primary reason nonprofit organizations decide to hire an HR company is employment law compliance. Compliance issues can lead to big-time fines — which many nonprofits can’t afford! And if your nonprofit operates in multiple states, it complicates things even more because you have individual state laws to keep up with.

It may also make sense for your nonprofit to outsource HR if: 

• You only hire staff to manage the nonprofit programs, but outsource all administrative functions, like HR, accounting, and IT.
• Your existing HR staff can no longer accommodate your nonprofit’s growing needs.
• Your HR department consistently sees high turnover, and you can’t afford to keep pouring time and resources into building it.
• Your controller/director of finance/CFO previously managed HR tasks but no longer has bandwidth due to growing accounting and finance needs.
• You don’t have the budget to hire a full-time HR manager or department.

When nonprofits partner with an external HR firm on an ongoing basis, they most commonly outsource: 

• Compliance
• Employee relations
• Compensation management
• Performance management
• Benefits administration
• Payroll

Working with a third-party HR company can help your organization save on administrative costs, ensure compliance, complete tasks and projects more efficiently, and provide you with overall peace of mind. And when you work with an HR firm, they offer a team of experts in a range of skills and with varying years of experience.

Learn more about how outsourcing HR can benefit nonprofit organizations.

Businesses with Internal HR Departments

Perhaps your small business has an internal HR employee, manager, or small department. They are capable of managing the day-to-day HR functions and issues, but are more of generalists. 

But what about when you need support on a specific HR project or task?

For example, maybe you have a short-term project, like an employee handbook or benefit package review. In these cases, you don’t need a new team member. Your outsourced HR firm can simply partner with your internal team to guide them and get the job done. This is also beneficial if you’re on a tight deadline; your HR consultant can work much more efficiently, thanks to their expertise.

Or maybe you need an expert in a specific area, something your internal HR professional is not as experienced in. You don’t have the budget to support a full team, but need additional support. Your HR partner can bring in experts for things like diversity and equity training or employee investigations/conflict resolution. Often, having a neutral third party guide these processes works best!

On another note, perhaps your HR manager or employee recently left and you need interim support while you find a new HR employee. Some HR firms offer this temporary assistance and will also work with your new hire to get them up to speed on all HR policies and processes. Check out our HR Gap Coverage service to learn more!

Before you outsource HR for your small business or nonprofit organization — whether for an ongoing or one-time project — you’ll need to assess your needs to ensure you choose the right HR consultant. If you’d like to discuss your options or simply need some guidance as you search for the perfect partner, contact BlueLion today at 603-818-4131 or info@bluelionllc.com. Our HR experts will be happy to answer your questions. 

Once you’ve decided that your organization is ready for outsourced HR, you’ll need to decide what type of solution will work best. This will depend on factors like the services you need and the size of your organization. 

Perhaps you only need one specific HR task, or you want a firm that will take care of all the administrative work. You may even be ready to outsource the entire HR department!

First, evaluate what HR functions your business would most benefit from outsourcing. Then, consider one of the five types of HR outsourcing solutions below. 

1. HR Software

Investing in the right HR software can be an affordable way to streamline your HR functions — and is often a good starting point for young and small businesses. There are two general buckets of HR software.

Software-as-a-Service

With Software-as-a-Service (SaaS), your organization licenses software programs from a supplier or service provider, which you use via a web server. SaaS solutions include essential HR functions such as:

• Recruiting
• Employee performance
• Payroll
• Recordkeeping
• Reporting
• Compliance

Additionally, this type of software often includes cloud backup and mobile apps. SaaS products are an effective way to improve efficiency and productivity in your business.

Human Resources Information System

A Human Resources Information System (HRIS) is an all-in-one software solution for transactional, administrative HR tasks. The beauty of an HRIS is it supports the whole employee lifecycle, including: 

• Recruitment 
• Hiring 
• Benefits
• Time management (vacation, sick leave, PTO)
• Termination
• Compensation
• Organizational management

While an HRIS doesn’t provide employee benefits, it does feature a platform for administering and managing benefits. Many benefits brokers offer this type of system.

2. Professional Employer Organization

A professional employer organization (PEO) offers HR management and benefits to employees through either a co-employer agreement or an employee leasing agreement. Basically, the PEO hires and leases your employees back to you. 

The PEO becomes the employer of record. It pays employee wages and payroll taxes, receives taxes, and has the legal authority to hire, fire, and reassign workers. Your business reimburses the PEO and pays a recurring administrative fee determined by the number of employees. This type of HR company is typically best for small companies with 50 or fewer employees.

Many small organizations opt for PEOs because they: 

• Have their own health plans and benefits solutions, which could lead to savings.
• Take responsibility as the employer of record, meaning less stress and legal responsibility.
• Provide all benefits, including workers’ compensation, retirement plans, and health insurance.
• Are perfect for those looking for payroll, taxes, and benefits access and management but not HR tasks.

However, the drawbacks of PEOs include: 

• The risk that benefits could be more expensive than what you’re used to.
• Their one-size-fits-all strategy doesn’t allow for customization in benefits or payroll.
• These inflexible benefits can also be challenging as you try to hire in this competitive job market.
• Confusion for employees, as the name on their paychecks and benefits documents will be the PEO’s.

3. Administrative Services Organizations

Administrative services organizations (ASOs) are similar to PEOs as they manage a lot of the same administrative HR functions but don’t become the employer of record. You remain the employer of record and responsible for legal obligations.

ASOs will manage:

• HR administration
• Payroll support
• Regulatory compliance
• Benefits administration
• Safety program support
• Unemployment claims (optional) 

The ASO supports your company’s HR responsibilities, but you are responsible for ensuring your policies are compliant with laws and regulations. An ASO does not offer: 

• Workers’ compensation coverage
• Benefits coverage (ASO only assists with administration)
• Claims management

ASOs have similar pros and cons as PEOs. The key difference is since you stay the employer of record, you retain control of your employees and avoid confusion. The ASO takes care of administrative tasks and helps you access benefits. They are ideal for those who only need help with administrative functions rather than complete outsourced HR.

4. Business Process Outsourcing

Business process outsourcing (BPO) refers to outsourcing a single HR function to a specialized vendor. You can pick and choose what tasks you outsource and to whom.

The BPO model allows you to eliminate your least favorite tasks and focus more on running your business and doing what you love most. BPO options can include: 

• Payroll and benefits administration
• Recruiting
• Developing and implementing training programs

Unlike SaaS, a BPO vendor offers support, taking care of the entire process for you.

5. Single-source Outsourcing

With single-source outsourcing, your HR team selects one solution for all their HR needs. One supplier manages the entire employee lifecycle, including:

• Recruiting
• New hire orientation
• Time and labor management
• Payroll
• Employee performance management
• Managing turnover
• Benefits administration
• Separation of employment

The benefit of working with a single-source HR firm is they’ll gain a deep understanding of your operations and employees. This streamlined service is perfect for employers who want one trusted outsourced HR partner, ideally one that can accommodate them as they grow.

Hopefully, we’ve got your wheels turning on what type of HR consultant you need. Of course, there is much to consider — but we’re happy to answer any questions and guide you to the right decision! Contact us today at 603-818-4131 or info@bluelionllc.com to find out how we can help you find the right solution for your business. Or, feel free to explore our HR services.

Spending some of your nonprofit’s funding on HR outsourcing might send your heart into overdrive at first thought. We get it! Nonprofits often have lean teams and limited budgets. 

But your staff probably doesn’t have the experience or bandwidth to handle HR matters — especially the complex ones. This can lead to productivity and legal issues and even put your organization at risk, which takes away from focusing on your mission.

So if your people are maxed out and you know it’s time to find a new solution, here are the top benefits of HR outsourcing for nonprofits. Stick around to the end for three quick tips to find the right fit for your organization! 

Benefits of HR Outsourcing for Nonprofits

Manage Administrative Costs Better

As a nonprofit organization, you must report administrative costs as a part of your annual financial report.

Instead of piling complex HR functions and issues on inexperienced staff who don’t have access to necessary tools and support, invest in outsourced HR, and be more transparent about your spending with help from an HR consultant. Depending on which tasks you outsource, you can:

• Keep costs low by partnering with a firm that offers pay-per-employee pricing or lets you pick and choose your services (that way, you don’t have to pay for services you don’t need).
• Provide detailed reports highlighting the organization’s internal spending.
• Lower administrative costs by taking HR paperwork and tasks off your team’s plate.

Reduce HR Expenses & Inefficiencies

Speaking of lowering costs, we know that efficient processes, updated technology, and experienced staff who get along all help drive your nonprofit’s mission. On the other hand, excessive time spent on poor operations and employee relations can impede progress.

Allowing your team members to get back to their zone of genius will positively impact your mission. After all, you hired them for their skills and expertise in their respective fields — not so they could struggle through operations where they have little to no knowledge. An HR consultant will be able to complete essential HR tasks, projects, and training in a fraction of the time.

Remember, just because you can keep a valuable task like HR in-house doesn’t mean you should. Nonprofit HR outsourcing is an upfront cost that will pay off by ensuring you have the proper systems in place and your organization is compliant. This includes time-consuming and costly responsibilities, such as: 

• Payroll
• Benefits
• Recruiting and hiring
• Compliance and risk management
• Workplace conflicts and investigations
• Performance management

Check out our complete list of the 10 most popular outsourced HR functions. 

Focus on Your Nonprofit’s Mission

As mentioned above, outsourcing HR for your nonprofit organization will free up employees to make a greater difference in your mission. But when they waste their time, resources, and energy on HR matters, it prevents them from taking meaningful action. 

Investing in an HR consultant will benefit your overall purpose. They will help you: 

• Develop and manage recruiting, hiring, and termination processes.
• Keep up with laws and regulations and update relevant policies and procedures.
• Administer day-to-day HR duties, including payroll and PTO requests.
• Create policies, an employee handbook, and employee documentation.

We’re guessing your passionate team would rather focus on fulfilling your mission and helping others without interpersonal issues, operational bottlenecks, and other distractions. Nonprofit HR outsourcing will take these core functions off your team’s shoulders and allow you to get back to your critical work.

Give Your Team Top-notch Resources

As a nonprofit leader, you might have to fight to prove that your staff deserves an income, let alone benefits and support for other issues. For example: 

• Who should they call if they have a payroll or tax question?
• How can they call in sick or request time off? 
• What is your new hire onboarding process, and who manages it?
• Do you have a workers’ compensation process?
• Is there a neutral party they can turn to with a concern or complaint about a coworker? 
• Who will manage those concerns when they arise (because people problems are inevitable when you work with humans)?

You may hardly have time to consider the above, but they are crucial standards in every organization. An experienced HR firm will be able to help you find the most cost-effective solution for providing fair compensation and benefits packages to your employees. They will also act as that resource for your team, conducting everything from onboarding and performance reviews to handling everyday questions and concerns. 

HR for Nonprofits: 3 Quick Tips

So, is HR outsourcing right for your nonprofit organization? How do you find a good fit? Here are three steps to help you decide.

1. Assess Your HR Needs

First, answer the following questions as you evaluate: 

• Do you have internal HR staff? If so, what is their experience and bandwidth? 
• How many employees do you have? 
• What are your growth plans for the organization? 
• What are your primary HR challenges and pain points? Consider the commonly outsourced HR tasks we mentioned earlier.
• Do you need one-off assistance or ongoing support? 
• Do you need an HR consultant to be onsite? 

Whether you need help with one area or complete outsourced HR, you should also do a cost-benefit analysis. Will outsourcing free up enough employee time to make it worth it? Should your HR partner have a deeper understanding of your organization’s culture and history? What is the impact of letting current HR employees go? Consider all the pros and cons.

2. Do Your Research

Once you’ve assessed the gaps in your organization and have support from your team and board of directors, start researching HR consultants. Be sure to ask if they: 

• Have worked with other similar nonprofits.
• Offer the full scope of services you need.
• Are licensed and certified by trusted industry organizations like the Society for Human Resources Management (SHRM).
• Have case studies and testimonials to share.
• Provide onsite, offsite, or hybrid services.
• Offer flexible packages and pricing.

Always have your attorney review any contract BEFORE you sign it. 

3. Set Internal Controls

How will you manage the relationship with your new HR firm? Put controls in place to ensure an internal manager has a direct insight into the work and costs. This could be an internal HR manager or specialist if you have one. Then, have them and another manager review the vendor’s invoices.

Learn how to choose the right outsourced HR consultant in our guide.

When it comes to HR for nonprofits, there are unique challenges to consider — but when done right, it can help launch your organization to the next level! To discuss your HR needs and find out if BlueLion’s services are a fit for your nonprofit, contact us at 603-818-4131 or info@bluelionllc.com today.

Is your small business growing faster than anticipated? Or, on the opposite end of the spectrum, is it not growing as fast as you’d like? Whether you’re dealing with bandwidth issues or operations bottlenecks, it may be time to hire an HR consultant. 

Of course, every company is different, and human resources needs vary widely from one to the next. So while there are many benefits of HR outsourcing, you’ll want to identify the gaps in your company before hiring a firm. 

There are a plethora of HR functions that you could outsource. The question is, which are relevant to your business? How can you ensure that partnering with an HR company is a wise investment? 

Start by keeping an eye out for these signs that it’s time to hire an HR consultant. 

1. Your employee handbook is outdated or nonexistent

If this is the case, we’re guessing your policies and procedures likely need updating, too. Sure, an employee handbook is not a legal requirement. But it can go a long way in guiding and protecting both employees and your business. 

Has it been two or more years since your last handbook review? You could be at risk due to:

• Outdated and potentially illegal policies
• Non-compliance with State or Federal regulations or guidelines based on your company size
• Missing policies that should protect your business and enforce best practices

Even if you already have a handbook, it’s not a set it and forget it document! Employer requirements change based on the size of your business, your location, and regular legal updates. It can be challenging to keep up with all of that, and remember to update your policies and handbook regularly. 

ALL employees should have access to the current version. When you create new policies or update existing ones, it’s also essential to notify and discuss the changes with your team and have them sign an acknowledgment. An HR consultant can help you develop, update, and administer your handbook and policies.

2. Your employee files are disorganized or lacking

Do you sweat at the thought of employee documentation? You probably need help managing this critical paperwork, which includes files for: 

• Onboarding (e.g., letter of offer, W-4, I-9)
• Payroll
• Benefits
• Performance management
• Termination

The state and federal Departments of Labor have specific documentation requirements for employees and how those documents are handled and stored. So if you: 

• Don’t have a clear checklist of which documents new hires must complete
• Struggle to find necessary files when addressing a performance issue or termination
• Lack a safe and secure file storage system

Consider hiring an HR consultant to help you create and maintain an employee document package and system.

3. You don’t have a formal employee review process

Performance reviews are still relevant and play a vital role in:

• Documenting performance, whether positive or negative
• Setting goals and expectations
• Employee growth and retention

Your team WANTS reviews. In fact, 92% of workers polled want feedback more than once a year, while 64% said they received helpful feedback from their performance appraisal. 

Small businesses need an employee performance review process coupled with continuous praise and communication. This is a commonly outsourced HR function, as a consultant will help you design and implement review procedures around employee and company goals. 

4. You are struggling to hire new employees

If your team isn’t growing as quickly as you’d hoped, it could be due to a few issues:

• You don’t have the bandwidth to recruit and hire quality candidates effectively
• Your job descriptions do not align with your needs or the positions
• Your employee benefits package is less than attractive (or nonexistent)

In today’s job economy, employers must be competitive and stand out. Not to mention, finding and hiring top talent takes significant time and effort. 

An HR consultant will bring their expertise in recruiting and interviewing along with an outside perspective. They can identify areas of improvement or opportunities to make your organization a top-notch place to work. Outsourcing the hiring process can help launch your company to the next level!

5. Your company has a high turnover rate

On the flip side, you may be struggling to keep the staff you already have — which can be extremely detrimental, especially when you lose high performers. You may be experiencing high employee turnover because of: 

• Poor workplace culture
• Not meeting employees’ needs and expectations
• Lack of training and development opportunities
• Poor management/leadership

When you’re so close to your own business, it can be difficult to gain clarity and get to the heart of the problem. 

However, an HR consulting firm can assess your company and team neutrally and identify the cause of your employee retention issues. Then, they can help you set goals and create an action plan to improve morale and processes. Many HR firms also provide training in various areas, from specific topics such as diversity, equity, and inclusion to leadership and management coaching.

How Could an HR Consultant Help Your Small Business?

Did one or more of the above statements hit close to home? Then it’s probably time to outsource some or all of your HR functions. Notice how your people are at the center of each of the five signs listed — your small business won’t grow unless you put your team first!

Still not sure exactly where your investment would be best spent? Not to worry! An experienced, reputable HR consultant will advise you on which services make the most sense for your company. 

To learn more, contact BlueLion for a consultation today at 603-818-4131 or info@bluelionllc.com. We’ll be happy to discuss your options, answer any questions, and determine if we would be a good fit for your organization!

You know you are ready for outsourced HR. Perhaps you may already have specific HR responsibilities or projects in mind, or your team’s capacity is maxed out. Either way, it’s time to leave the human matters to the human experts. 

But how do you choose the right HR consultant? After all, you’re entrusting them with significant business concerns. Do they offer the specific services you need? Do they have experience in those areas or working with businesses like yours? 

Below, we’re reviewing seven steps you can take to hire an HR partner that will help you take your organization to the next level. They are: 

• Assess your HR needs
• Calculate your budget and cost
• Research each potential HR consultant
• Consider your growth plan
• Determine if you need onsite support
• Know what you’re getting
• Make sure it’s a good fit

Read on for more tips and questions to consider as you interview prospective HR firms.

1. Assess your HR needs

Every employer’s HR needs vary based on several factors. Start by answering the following questions: 

• Do you already have HR staff in-house? If so, what is their experience and bandwidth? 
• How many employees do you have? 
• What are your growth plans for the business? 
• What HR and operational challenges do you currently face? 
• Do you need one-off assistance or ongoing support? 

If you have a very small or nonexistent internal HR team, you might need an outsourced HR firm to manage most of your HR functions. Perhaps you just hired your first employee, but you’re new to HR and employment law. Or maybe your company is expanding more quickly than expected, and you want to ensure compliance. 

On the other hand, you might have had an HR manager or staff member recently give their notice. Now, you’re scrambling to handle their tasks, get up to speed, and hire and train their replacement. Sounds stressful, right? 

An experienced HR consultant can help any of the above organizations get their ducks in a row. BlueLion even offers a unique HR Gap Coverage to ensure nothing falls through the “gap” and your company keeps running smoothly despite the transition. 

2. Calculate your budget and cost

What is your budget for outsourced HR services? Can you afford NOT to invest in proper HR functions? 

Compliance mishaps could lead to hefty penalties and put your entire organization at risk depending on your business and industry. For example, payroll processing errors or employee misclassification could result in fines and even lawsuits. Investing in the right team to guide you upfront could protect your business in the long run. 

Of course, you also don’t want to pay for more than you need. Ask each potential HR consultant how they structure their services and if they’ll customize a package for you. Be wary of those who lock you into bundles with services you don’t need. You should also avoid long-term contracts — you never know when situations may change, or you may decide that it’s not the right fit.  

You do not have to break the bank on unnecessary services. There are plenty of HR firms that will let you pick and choose your services or even come in to help you with specific projects and training topics, such as employee handbook creation or harassment training. Some even offer an HR hotline for employers and employees to call when they have urgent questions or concerns.

3. Research each potential HR consultant

Once you have determined your needs and budget, search for outsourced HR firms that provide the functions you need. Finding an HR partner who understands your industry is crucial, especially if your business is subject to specific laws or regulations. For example, certain trades businesses must stay abreast of labor unions and laws. 

And on top of federal labor laws, there are state labor laws. Often, state laws trump the federal laws when they lean more in the employee’s favor (e.g., minimum wage requirements). Your HR consultant should understand the local laws and how they apply to your organization. 

Next, check their certifications, track records, and references. 

• Are they licensed and certified by trusted industry organizations like the Society for Human Resources Management (SHRM)?
• Do they have case studies and third-party testimonials to share? 
• Have they helped clients reduce costs or increase productivity? Can they share numbers? 
• Better yet, do they have a client you can speak to directly as a reference? 

There’s nothing like unprompted social proof to speak to a company’s skills and integrity!

4. Consider your growth plan

What are your plans for the next few years? If you plan to expand, whether by employee count or physical location, it’s best to choose an HR firm that allows you to select the few services you need now but can grow with you in the future. 

Look for a partner that offers complete outsourced HR services, as your needs will likely change over time. Ask if they will: 

• Design performance review processes
• Assist with recruiting and onboarding
• Manage performance issues
• Provide conflict management
• Guide the termination process
• Deliver employee and leadership training

These are just a handful of tasks that become bigger and more time-consuming as your business grows. And not only will your capacity dwindle, but having a neutral third-party and outside perspective in these areas can add valuable insights.

5. Determine if you need onsite support

If you operate a fully remote company, this is likely not a concern. But if you have humans at a physical workplace, you may require regular onsite visits from your outsourced HR partner. 

Whether your team needs training that is simply more effective in person or you need someone to have those difficult conversations with team members, ensure that your HR team is available when and where you need them.

6. Know what you’re getting

Some HR companies provide what is essentially phone support. Instead of building a close relationship with a dedicated HR professional, you will get a different person every time you call for a question. This may be sufficient if you have basic needs and only call for the occasional advice. 

However, if you want a long-term relationship with an HR consultant who gets to know your business inside and out, you’ll want to look for another type of provider. Search for a firm that works as an extension of your team and offers a dedicated HR expert to work with you on an ongoing basis.

7. Make sure it’s a good fit

Since your outsourced HR partner will be working with your people, you’ll want to ensure they are the right fit for your workplace culture or the culture you’re striving for. After all, your HR consultants will be the ones helping you build that culture! Their style and values should align with your company’s and help maintain or boost morale. 

You should be able to trust your HR partner. Will they handle delicate situations with care and professionalism? What will it be like working with this firm? Consider how your interactions with them and customer service experience have been. Then trust your instincts.

Consider these factors and questions above as you evaluate your outsourced HR options. Don’t be afraid to ask questions and request references and testimonials upfront. When you have an action plan for hiring an HR partner, you will be much more likely to find the best fit. Soon, you’ll be on your way to a happier, more productive, more profitable organization. 

Are you ready to discuss your company’s HR needs and options? Contact BlueLion at 603-818-4131 or info@bluelionllc.com to chat with one of our HR experts today!  We’ll be happy to uncover and customize the best solution for your business.