HR Outsourcing

If you are considering a start-up, you may want to avoid the hassles, headaches, and burdens involved in building out your HR infrastructure.

The big guys are doing it!

As recently as the early 90’s HR outsourcing was a very small, emerging option that was met with skepticism by big business (over a billion in revenue). These early outsourcing companies did not have the tools, paths or resources to meet the demands of their early adopter clients but with the vast improvements of the internet and workflow processes, by the early 2000’s outsourced HR had become a 165 billion industry.

Not only did it grow but it grew very well in regard to retention. An Accenture study in the mid-2000’s had shown that over 80% of companies that chose to outsource HR functions were happy at the management level as well as the employee level. During this period, the Shell Oil Corporation was able to reduce HR infrastructure and overall HR costs by 40% while improving benefits and employee retention.

Great, it works for the big guys, what about the start-up?

With this in mind, anyone considering a business start-up can be free to remain focused on the business they are developing verse trying how to meet compliance, policy issues, and finding all the right tools to track all employee needs. This cumbersome task is time-consuming as well as costly.

With a little research and due diligence, a start-up can identify cost effective solutions that are now plug-n-play and will be developing a partnership with their provider. Many of the options in today’s market place are well suited to grow as the underlying start-up grows.

Any glance at today’s startup world shows the great need to get HR correct from the start instead of the mad scramble that seems to be in the news on a weekly basis as companies fail in this most critical issue in running a business.

Cash is king!

As a start-up, keeping cash as long as possible is always important. What many new businesses fail to see is that high-cost investments into HR infrastructure have no R.O.I., these costs can be avoided by tapping into the outsourcing company. Yes, there remains a cost but is spread out over each new hire.

Two other cost saving benefits that many are not aware of in today’s market are, pay as you go worker’s compensation and payroll funding. Each of these silver bullets can be a cash saving life line for any new business.

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