As a small business owner, hiring an HR consultant can make your life easier. They are experts in their field of work, and you can be assured that any service you outsource will be done with a high degree of professionalism. HR consultants can help you with many different HR functions that are integral to your business. Here are a few reasons why hiring an HR consultant is beneficial for your business.
Internal HR
Human resources describe the personnel who make up a business, and an HR department is responsible for all the functions related to maintaining that workforce. An in-house HR department focuses solely on the needs of the people within an organization. However, employing an in-house team could cost you up to $61,920 per specialist and $116,720 for management. In-house HR can also be lacking in terms of specific HR knowledge, and an influx of work can off-balance existing processes. This is where HR consultants step in.
Human Resource Outsourcing
The going rate for an HR consultant can appear quite high, but in the long run, employing an expert for a contracted period of time can save you money. In addition, HR consultants are skilled in a wide array of services and can help you put strategies in place to successfully grow your business. Dallas HR outsourcing company, G&A Partners, provides human resource consulting services to help your company thrive. Outsourcing services, such as payroll, recruitment, and training, enable you to direct your focus to other areas of your business.
Cost-Effective Strategy
As highlighted above, employing a team of HR experts can be costly. Manning an HR department requires a skilled workforce and a considerable amount of resources. According to Payscale, the average hourly rate for an HR consultant is $40.47. This is far from cheap; however, it will still work out to be more cost-effective than employing permanent members of staff.
In addition to reducing wage-related costs, an HR consultant will not take up valuable office space. A team of HR consultants can occupy a surprising amount of space in an office. Depending on the size of your workplace, relocation may be necessary to accommodate a new team. As well as overhead costs, there are other costs you may need to cover, such as healthcare, taxes, and insurance.
Risk Management
An external HR service provider can identify threats and potential issues that your business may face; they will then come up with a solution to help you manage these risks. HR consultants will help you pinpoint human-caused risks in your business, such as low productivity or non-compliance. They will then work with you to help you understand how these risks occur before creating a strategy to reduce these risks.
Stay Compliant
As a business owner, you need to be aware of federal and state wage and hour laws, various employment laws and regulations, and ever-changing legislation. If you are not an HR expert, then all of this can be a lot to take in. Unfortunately, if you are unable to abide by important regulations, you run the risk of being non-compliant. This can lead to expensive financial penalties. HR consultancy firms employ compliance experts who are up to date with all the relevant regulations for your business. They have the expertise to implement new requirements and can help you stay compliant.
Work Efficiency
Many aspects of human resources can take a considerable amount of time. With external help, like an independent contractor (as long as they should not be classified as an employee), an existing HR workforce can be relieved from additional HR work. Your team can instead focus on their usual workload. Employing an HR consultant can lead to better quality work and a happier team. Business owners may be tempted to cut corners and take on various aspects of HR themselves, but without the relevant expertise in the field, you can risk making errors and wasting valuable time. Employing an HR consultant will allow you to work more efficiently and manage your time more effectively.
Flexible Approach
When an unexpected workload presents itself, existing HR staff can benefit from the professional help of an external provider. You may want to delegate the additional load to your employees; however, this is a waste of resources. This is especially true if your employees have no experience in this area. HR outsourcing is a practical way to handle an influx of work without jeopardizing your existing system. Outsourcing can support your HR team and help them streamline the processes they have in place. Small businesses that want to add new HR services will benefit from the advice of a consultant. An HR expert can implement new functions seamlessly. In addition, if you decide against keeping this function in the long term, you are only paying the consultant a fixed rate for their service.
High Level of Expertise
HR consultants are experts in their field, with a vast amount of experience and knowledge in the industry. While your in-house HR team may be fully capable of performing their work duties, they may not have the same depth of knowledge. Outsourcing your HR services to a consultant will ensure your HR needs are met professionally and are handled with a high level of expertise.
Systems and Software
In addition to expertise, HR consultants often work with the latest software and have up-to-date processes and systems in place. Using advanced technology, external HR providers can offer high-quality service to your workforce. HR consultants will handle your services efficiently using up-to-date HR systems.
Core Business Values
HR plays an important role in a business, and HR services should be handled with precision by the right people. By offloading the work to employees less qualified or to HR staff who already have enough on their plate, you risk decreasing productivity levels and taking away focus from core business values. Allowing an external provider to handle your HR services will enable you and your team to manage your time efficiently and focus on other important aspects of your business.
