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.

If this sounds familiar, you may be weighing the pros and cons of hiring a full-time HR manager and/or team vs. outsourcing HR functions. Enlisting the expert assistance of a third party can meet all the needs of small and nonprofit organizations!

Partnering with an HR firm enables you to hire and retain top talent by focusing on your employees and creating an optimal workplace. There is no need to add an HR manager or various HR experts to the payroll—HR consulting teams consist of professionals who specialize in different areas, from recruiting and hiring to employment law and everything in between.

There are many benefits of outsourcing HR, but below, we’re focusing on those that specifically help you put the H in HR first! (Pssst…we’re referring to humans, your most valuable asset!)

1. Recruiting & Hiring

Recruiting and hiring can become a full-time job, but you don’t have to hire an internal recruiter (or recruiting department, depending on how large your company is/how fast you’re growing). Your outsourced HR firm can manage much of this process for you, from crafting targeted job descriptions to screening resumes to assisting with interviews. 

With an HR consultant overseeing the recruitment and hiring process, you’ll experience a more cost-effective way to find the best candidates for your organization—ideally, those who will stick around for the long run.

2. Employee Retention

Speaking of employees sticking around, your HR company will help you with that, too. Organizations with high turnover rates waste significant time and money constantly filling positions. And when a worker leaves, it affects productivity due to a gap in their role and having to train a new employee.

Your HR firm can help you ensure you are offering competitive pay, benefits, and perks to help employees achieve work-life balance and show them you care about their wellbeing. 

3. Employee Morale & Productivity

With an outsourced HR team to focus on employee retention and foster a positive work environment, your staff will be happy and excited to come to work. Plus, your team won’t be burdened with HR and administrative tasks that are not in their wheelhouse. They will be less stressed and enjoy more time to focus on their core responsibilities (i.e., what you hired them to do). And you will experience higher output from individual employees and departments.

4. Internal Communication

They can also field employee concerns and handle any issues or conflicts that arise, guiding your team toward healthy resolutions. Big or small, staff will appreciate having a neutral, trusted outlet to voice work-related issues, big or small.

Overall, your HR consultant will help you create a positive workplace culture that will make your team want to stay.

5. Consistent Processes & Standards

Perhaps you’ve been getting by with outdated or nonexistent policies, but that will only work for so long. A lack of clear guidelines puts your company at risk and can lead to significant fines. It can also confuse, frustrate, and demotivate your employees, driving them away.

Your HR company will help you update your existing policies and employee handbook or help you develop them as necessary. They will also guide you in establishing critical processes and a solid organizational structure. 

Solid policies and procedures help all team members understand their roles and responsibilities and how they can grow with your organization. From performance reviews to PTO policies, your employees must know where they stand with your company, how to go about specific processes, and how to fulfill their goals and expectations. This is crucial for employee development and, in turn, retention.

Outsource HR: Cost-Effective & Employee-Centric

Outsourcing HR functions creates a top-of-the-line workplace, results in happier employees, and ensures compliance with state and federal labor laws and regulations. Depending on your company’s needs and budget, it also gives you options. So whether you have: 

• No internal HR employees
• One HR manager who needs more support
• A small HR department that requires guidance from specialists

…you can partner with an HR firm and get all your administrative and operational needs taken care of without hiring additional employees.

Is your business at a point where the HR requirements are outgrowing your small but mighty team? Contact BlueLion today to discuss your options at 603-818-4131 or info@bluelionllc.com! 

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. 

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.

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.

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!

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.

So, why not outsource one of the most crucial areas of your business: Human resources? 

Whether you have a new or established business, there are likely a handful of HR functions that you don’t have the time, knowledge, or desire to do. That is understandable—the field has many nuances, requiring continuous training and education hence why many employers opt for HR outsourcing.

If you’re exploring HR services, you may be wondering what your options are and how to determine which tasks you should leave to the experts. Below are 10 of the most commonly outsourced responsibilities.

1. Payroll Services

Payroll continues to be THE most popular outsourced HR function! It is almost too easy to make costly errors that can lead to tax penalties or even open up your company to lawsuits. It’s simply not worth the risk.

Your payroll service provider can take care of: 

• Payroll calculation
• Taxes
• Producing and delivering checks
• Direct deposit
• Envelope stuffing
• Automatic signatures
• W-2 forms

You’ll meet filing deadlines and deposit requirements when you outsource the payroll function. Plus, payroll companies have the latest and most efficient technology—meaning they can process everything much faster than your in-house team.

The IRS recommends choosing a payroll provider that uses the Electronic Federal Tax Payment System (EFTPS), which allows you to confirm provider payments. 

2. Employee Benefits

Like payroll, managing employee benefits is a job in and of itself. You have to worry about employee healthcare, pension and retirement plans, work-life benefits like employee childcare, employee assistance programs and counseling, and even additional options like HSAs and FSAs.

When you partner with an HR consultant, they can:

• Review and create your benefits package

• Help you find the most affordable options
• Respond to employee concerns and questions
• Manage program enrollment
• Process changes in participation status
• Monitor benefit history and eligibility

Bottom line: Outsourcing your benefits administration can help your organization stand out with a unique and attractive benefits package. BlueLion works with fantastic insurance brokers to provide you with the best options.

3. Recruiting & Hiring

Save your leaders and managers significant time by taking much of the recruiting and hiring process off their plates. A complete outsourced HR firm can help you: 

• Develop job descriptions
• Post open positions on job boards
• Review Resumes
• Interview candidates
• Provide feedback and suggestions

When you do hire new employees, your HR consultant can also ease the onboarding process by: 

• Handling new hire paperwork
• Setting them up on your payroll system
• Discussing company policies and procedures with the new hire

Growing your team entails more than simply finding skilled candidates—employers must also follow legal requirements throughout the process. Your HR company will ensure your job descriptions and hiring practices comply with the Fair Labor Standards Act (FLSA) and the Americans with Disabilities Act (ADA). They’ll help you spot top talent and establish positive relationships with candidates. 

4. Compliance & Risk Management

There are specific federal and state regulations employers must follow. This could also vary depending on your industry, type of business, and business size. Your HR consultant will ensure you comply with:

• The Family and Medical Leave Act (FMLA)
• Workers compensation
• Unemployment
• ADA
• Department of Labor (DOL) requirements and audits

In addition to HR functions like payroll, benefits, and hiring, they will support you in critical areas, including: 

• Employee handbook creation/updates
• Policy development
• Employee documentation
• Safety programs and guides

Employment laws change constantly and are challenging to keep up with. If you fall out of compliance, your business could be at significant risk of penalties and litigation.

5. Drug & Background Screening

While there is no federal requirement for most private employers to have a drug-free workplace policy, you may feel more comfortable conducting drug screenings for new hires to ensure the safety of your team. The same goes for background checks. 

And it may come as no surprise that there are specific laws about how far employers can investigate. Not to mention, there are various types of drug tests and background checks. So how do you know which you should use and how to do so lawfully? 

Work with a third-party provider to manage the process. Many HR consultants oversee and partner with third-party companies that take care of these processes, ensuring a safer work environment. 

6. Workplace Conflicts & Investigations

Workplace conflicts and investigations often go hand-in-hand with compliance and risk management. These issues can escalate, especially if you don’t address them. This could subject your company to costly lawsuits.

Whether you have employees who don’t get along and disrupt the workplace or you’ve received a complaint against a team member for harassment, sexual harassment, or discrimination, it helps to have a neutral third party who will come to your worksite and handle the issue. Your dedicated HR consultant will speak with all necessary parties, take care of documentation, and communicate with your legal team and insurance company.

7. Workforce Administration

To save your team even more time, you can outsource essential HR functions, known as workforce administration. The Society of Human Resource Management (SHRM) defines this area as: 

• Development, maintenance, and operation of HR information systems (HRIS)
• Employee and manager policy and procedure support
• Employee and manager self-service and customer service
• Employee data management and records retention

Workforce administration is often the foundation of HR outsourcing, done in conjunction with compensation administration and performance management. 

Hand off all that HR busywork to experts who will handle it much more efficiently so you and your team can get back to doing what you do best!

8. Performance Management

Many employers dread the performance management process. It’s time-consuming and not always entirely positive. However, you can enjoy smoother performance reviews, conduct regular and constructive employee feedback, and foster employee morale with suitable systems in place. 

If your leadership team is overwhelmed, an HR consultant can help you: 

• Design a performance appraisal system
• Work alongside managers and leaders to conduct employee performance reviews
• Maintain employee records/files
• Manage performance issues

Best of all, an HR firm will do extensive research into your company, goals, and each position and department. For example, BlueLion will build you a custom monthly, quarterly, or annual review process that evaluates both the employee’s and the organization’s goals. 

9. Employee Rewards & Recognition

Speaking of performance management, when employees do well, you will want to reward them and show your appreciation for their dedication and hard work! 

Rewards and recognition programs can boost employee morale and incentivize team members in areas such as productivity, sales, workplace safety, work anniversaries, and accomplishing major tasks or projects. 

Although they sound like fun, reward programs can eat up a lot of time and energy. You may have several tasks, such as ordering plaques and certificates. Even issuing bonuses requires specific accounting and administrative work. As your team grows and evolves, it may become more complex. 

Outsource these tasks to an HR consultant so they’re handled smoothly—and so you have one less thing to worry about. 

10. DEI & Anti-Harassment Training

Diversity, equity, and inclusion (DEI) and anti-harassment training are critical to creating a safe, welcoming environment for all employees. Bring in a neutral party to conduct these training sessions and gain an outside perspective.

BlueLion will engage your employees in modern, realistic discussions and scenarios as your HR consultant. We will educate your team on what to look for, how to handle a conflict when it arises, and how to create your ideal workplace culture. Forget those cringeworthy old-school videos demonstrating bullying or sexual harassment! Your employees will become more culturally competent, empathetic, and self-aware while building trust with one another. 

Now that you’re familiar with the 10 most popular outsourced HR functions, which ones would you remove from your plate first? Consider where you currently experience people and operations bottlenecks, and evaluate from there.

If you’re ready to invest in a complete outsourced HR firm or have crucial projects and training you need assistance with, contact us today at 603-818-4131 or info@bluelionllc.com. Our HR consultants will help you find the best solution for your organization.

• Want a more affordable way to manage your people and operations than staffing a whole HR department
• Are concerned and overwhelmed at the thought of compliance
• Need assistance with specific HR tasks
• Have a small internal HR department but need specialized help

Or maybe it’s something in between! Either way, enlisting the help of an HR consulting firm saves employers significant time and money, particularly for small businesses and nonprofits.

Start by determining where HR outsourcing makes the most sense for your company. If you don’t have an internal team, you might opt for a complete outsourced HR solution. If you do have an internal HR department, you might outsource specific processes like talent management, recruiting, and handbook creation.

Regardless of your needs, partnering with an HR consulting company creates efficiencies and peace of mind. 

Why Choose HR Outsourcing?

1. Save Time & Improve Productivity

HR outsourcing can save your organization time and boost productivity thanks to: 

• Specialists who know the ins and outs of HR.
• HR systems and automation.

Without a partner, you and your employees are stuck figuring out every HR matter on your own. You’re likely not HR experts, so you’ll need to spend more time researching and resolving issues. Too many requests or concerns at once could cause roadblocks. HR consulting firms can handle projects and problems efficiently.

Depending on which functions you outsource, your HR consultant will also implement technology that saves you a lot of time, money, and work — not to mention paper! For example, many organizations outsource processes like payroll or performance management.

Outsourcing HR projects and responsibilities allows your employees to focus on their areas of expertise and makes your organization more productive and profitable.

2. Lower Costs

Of course, one of the most significant benefits of HR outsourcing is how much money it will save your small business. You won’t have to hire HR employees, saving you the costs and stress of recruiting and hiring. When you hire a new employee, you have to consider their salary and taxes, insurance, legal expenses, and recruitment fees. 

HR professionals also need to attend regular education and training. Keeping everything in-house means you have to pay for and manage all of that HR technology yourself, like payroll, benefits enrollment, and your human resources information system (HRIS). This is a hefty financial commitment and typically is not cost-effective for a small business to take on.

You can contract a third party to act as your HR department and manage everything — from employee relations to training and development to technology — for a fraction of what you would spend hiring internally.

3. Reduce Risks

Employment laws and regulations are constantly changing at federal and state levels. That’s a lot for any small business owner to keep up with! And what you don’t know can certainly hurt your company by opening you up to steep penalties or even lawsuits. 

HR consultants know the legal ins and outs and constantly stay up-to-date with labor laws. They’ll ensure you’re compliant by regularly reviewing vital areas, including your: 

• Employee handbook and policies
• Wage and hour practices
• Benefit offerings
• Payroll and taxes
• Hiring practices
• Employee documentation

You can rest assured that your outsourced HR partner will mitigate risks and help protect you, your employees, and your overall business.

4. Ensure Proper Payroll Processes

Payroll is a BIG responsibility — and without sufficient technology and trained payroll professionals, you have your work cut out for you. You run the risk of costly mistakes between employee withholdings and possible complications like bonuses and reimbursements. 

That’s why most small businesses outsource their payroll process. A third-party payroll provider will process and audit your payroll to ensure all employees and contractors are paid correctly and on time. They also offer guidance on topics like tax and benefits.

5. Focus on Employee Development

Employee growth and development are crucial to holding onto your valuable team members. When you completely outsource your HR management, your consultant will work alongside your leadership and managers to:

• Create and manage employee performance review processes
• Maintain employee records/files
• Manage performance issues
• Conduct coaching and training sessions

By focusing on employees’ career paths and helping them set and achieve goals, your HR consulting company will positively impact employee retention and morale.

6. Offer Better Benefits

Employers have to offer compelling benefits packages in this competitive job market. But if you don’t know where to look or what to look for, insurance can be costly for your small business. 

Then there’s the matter of standing out, which takes more than healthcare and a retirement plan. Today’s top talent are searching for unique perks — think offerings that save them time and money, provide work-life balance, and allow them to give back.

A reputable HR consulting firm will set you up with a cost-effective, high-quality benefit plan. They will also help you get creative and offer incentives, from wellness solutions to team volunteer opportunities to no-meeting days. 

7. Gain a Fresh Perspective on Your Organization

You are passionate about your business, and that’s a beautiful thing. But sometimes, you need someone to help you take a step back and see what you might be missing — especially when it comes to your people and operations.

Perhaps you want to scale and are wondering how you can maximize your current talent. Or maybe you’re experiencing bottlenecks but need help getting to the root cause. Getting an outside perspective can play an essential role in your company’s growth. 

Your outsourced HR partner can help you identify areas of opportunity, spot potential problems or risks, and put new strategies and policies in place to take your organization to the next level. 

Now that you understand the many benefits of outsourcing HR, you can evaluate which functions you should outsource first. If you have questions or are ready to remove the HR burden from your plate, learn more about our services or contact us at info@bluelionllc.com today!