Overcoming the challenges small businesses face with HR
For small business owners, trying to tackle both operational and HR responsibilities can be beyond overwhelming. With HR alone, there are just not enough hours in the day to handle the day-to-day administrative duties and keep up with ever–changing labor laws, tax laws and healthcare reform— just to name a few. To help mitigate the workload, small business employers should consider delegating those HR tasks to a professional employer organization (PEO). This blog discusses the pain points many small businesses experience when handling HR in-house and how a PEO can help benefit the business long-term.
HR pain points
- Administrative overload
Payroll processing, onboarding new employees, and coordinating benefit packages require constant effort and oversight. A constant focus on these issues may result in other operational tasks going unfulfilled.
- Benefits trouble
Benefits such as medical insurance and retirement plans are commonly a major incentive for job candidates. Unfortunately, many small business employers cringe at the thought of putting together benefits packages as there are simply too many options and too much information to digest.
- Human resources and safety concerns
Whether it’s firing an employee or addressing a discrimination claim, handling employee-related situations can be very sensitive. One wrong move and the employer can find itself in a lawsuit. Many business owners may not be up-to-date with current HR laws and how to properly handle these situations, so are at a higher risk of legal consequences.
- Limited knowledge of government regulations
As an employer, you’re required to learn the ins and outs of all these regulations and apply them to your business. However, like human resources concerns above, it’s difficult to stay current, especially when regulations are constantly changing.
- Recruiting and retaining top talent challenges
Creating a happy and healthy work environment is essential to maintaining a productive workforce. However, when small business employers are faced with fulfilling administrative HR tasks like processing payroll and filing compliance reports, there’s not enough time to focus on talent management.
Where a PEO can help
Unlike other types of HR service providers that deliver only one or two specific services, PEOs can handle the bulk of your business’s HR tasks. It’s not just offloading your human resources needs to an external organization. It’s partnering with a company that is solely concentrated in human resources and working with small businesses to relieve their HR costs and resources so they can focus on operations.
A PEO provides the small business with the following benefits:
- Administrative offload
- Health, retirement, and workers’ compensation benefits
- Talent management services
- Assistance with federal and state employment laws and regulations
- Employer liability management
- Performance management support
- Access to seasoned HR professionals
Put the focus on the business
Many small business employers start performing HR tasks to avoid hiring personnel or because they believe that using an expert for their HR services is expensive and unnecessary. But after getting inundated in HR administration and having to constantly be up-to-date on practices on regulations, it can easily become a full-time job. Fortunately, employers can work with a PEO to offload many of the HR tasks and get back to operating a business.
Diversified Human Resources (DHR) is the leading full-service HR solutions provider based in Arizona, with offices in Denver. Since 1996, DHR has served thousands of Arizona and regional companies with payroll, benefits, HR administration, retirement, and workers compensation solutions. Contact us today and learn how easy it is to tailor a plan to upgrade your HR function and improve your bottom line.