As a business owner, you have a lot on your plate, and HR is one of them. All the daily tasks can quickly become overwhelming. You may be considering hiring a full-time HR employee, or outsourcing your HR responsibilities. If you’ve taken some time to check out your options, you know how much information there is to read through.
Chances are, you really don’t have the time to compare your HR options since your running a successful business. Plus, some of the options can be confusing. If you’re having some trouble determining the best way to handle your HR, here the three most popular HR strategies:
- Hiring In-House HR Personnel
- Using Multiple Vendors
- Partnering with a Professional Employer Organization (PEO)
Hiring In-House HR – Basically, you will hire someone to be a full-time employee in your office.
- Pros: You have someone there at all times and you will always know what’s going on with your employees and other essential elements in the HR world.
- Cons: Paying an HR salary can be costly. In fact, according to the Bureau of Labor Statistics, the hourly salary of a Human Resources Manager is $47.94. That’s a whopping $99,720 yearly. Not to mention a pretty substantial salary for a small business.
Multiple Vendors – You will pay two or more vendors to handle separate portions of your HR responsibilities.
- Pros: You have professionals handling all of your HR needs. You no longer have to handle administrative tasks yourself and you don’t have to pay the high salary of an in-house employee.
- Cons: Now you have many different companies handling your HR tasks and you spend extra time managing multiple relationships. This can get very time consuming – confusing even, and ultimately become an even bigger burden.
Partnering with a PEO – You will partner with an organization that will handle every aspect of your HR needs.
- Pros: You will have a fully capable, high-quality HR staff at your fingertips that will take care of all the different HR tasks that you would normally have to handle. This includes payroll, compliance, workers’ compensation and much more.
- Cons: The only con to using a PEO is the fact that you will need to give up some administrative control. But isn’t that a pro as well? After all, did you go into business to manage HR?
The bottom line is, choosing the right way to handle HR woes can be difficult and you want to make sure your decision is right for your business and your employees. So if you still feel like some of your questions have gone unanswered, we created this ten-page guide called the Complete Guide to Human Resources, which will help you weigh all your options when it comes to choosing the perfect HR strategy for your business.