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Everything You Need to Know About HR for Small Businesses

Everything You Need to Know About HR for Small Businesses

Set Motamedi

February 23, 2023

Does your small business need an HR arm? Many founders and entrepreneurs are

left wondering what HR for small businesses truly looks like within a

practical application. After all – you know that there are team members,

compliance and culture needs that need to be met. However, sourcing the right

HR for small business tool can feel overwhelming. 


If this sounds familiar, we want to encourage you. HR services for small

businesses and professional outsourcing networks can be very effective in

helping you to mitigate your HR risks and maintain compliance across your

organization, no matter what scale or size you’re currently at. 




Read on to learn more about the benefits that HR consulting services for small

businesses can bring to your organization. 




Why Small Businesses Need HR 

Human resources departments manage your most important resource available:

Human capital. Something so nuanced and complex requires an expert approach

for the best total results, keeping top talent within your brand and building

your culture simultaneously. Other key areas of business that your HR services

for small businesses may cover include: 




  • Training and onboarding: This task brings your incoming team members to a

    certain level of proficiency and efficiency from the very start of their

    tenure. 

  • Compliance support: From local and national requirements to

    inter-organizational support, HR specialists can help you to maintain

    compliance at every level of your business. 

  • Compensation support: Payment schedules and tiers can be complex. Having an

    expert to help you navigate the intricacies of compensation is a fantastic

    investment in your brand experience and company culture. 

  • Retention and recruiting: Your company is as strong as the people you hire.

    Trusting an HR specialist to support you in this task can give you extra

    peace of mind and assistance as you build your team. 

  • Interpersonal communication and employee needs: From disputes to one-on-one

    team member assistance, your HR specialist is trained to effectively and

    professionally handle needs across your organization’s team members.

Outsourcing HR Services For Small Businesses in 2023 

While small businesses can benefit from professional HR services, it doesn’t

mean that you have to handle it all yourself. Outsourcing this area of

business can free up hours of your day and allow you to move to higher-level

tasks. Below are just a few of the other benefits you can enjoy from

outsourcing HR for small business needs. 




1. Cost savings 

Hiring the wrong person

or investing in fractional software solutions can contribute to lost overall

cost. However, outsourcing through a single, centralized solution can help you

to save significantly in the long run, and keep you agile enough to absorb

other costs of doing business. 




2. Agility 

Choosing to rely on outsourced HR support enables you to pay only for what you

need and use. You have the flexibility and convenience of professional

assistance without the costs and obligations of an internal hire. It’s a

stronger method of doing business for companies at every scale and can set a

foundation for sustainable and replicable growth. 




3. Engagement 

When your people are cared for, they excel. Engagement generally rises with a

solid HR outsourcing strategy in place at every scale of business. Your

employees will have a direct link to the support they need to thrive and

navigate situations in the workplace, allowing them to feel empowered,

engaged, and completely connected with your company. 


Three Things to Look Out For in HR Consulting 

No two HR consulting services are alike. Understanding key indicators of

success in your choice of an HR consultant can help you to navigate the search

process more effectively. While there are many different questions or areas of

proficiency you can look for in your ideal solution of choice, we do recommend

identifying these three elements before committing to any HR-related product

or service: 




  • Background and longevity: Knowing the details of the service’s formation and

    their length of success in their respective industry can help you to feel

    confident upon your sign-on. It also helps you to understand how to best

    leverage their service ranges. 

  • Structure and organization: Outsourcing to an HR consulting service or an HR

    management system is different than bringing on an in-person contractor.

    Before you commit, it’s important to understand the functionality and

    administrative processes you can expect for basic HR needs. 

  • Area and comprehension of expertise: Your business needs an

    HR solution

    that is comprehensive enough to cover your needs. Knowing areas of expertise

    and the comprehension of your business’s plan is essential for long-term

    success with your HR company of choice. 



Five HR Consulting Services for Small Businesses

There are a variety of options to choose from if you’re looking to outsource

your tasks related to HR for small businesses. Below, we’ve listed the top

contractors and services in the industry, along with their unique selling

points and areas of expertise. 




  • Bambee: Best overall – Bambee is both accessible and simple,

    allowing you to put your HR on autopilot for just $99 per month. You’ll get

    extensive HR audits, a dedicated manager, and assistance in every area of

    human resource management. 

  • Emplicity:

    Best professional employer organization-style HR support: Emplicity

    is a PEO that offers tactical services in specific areas, such as admin,

    payroll, and benefits management. 

  • Gusto: Best for rapidly scaling organizations: Gusto offers a

    payroll and benefits assistance package that’s specifically scaled to the

    needs of small business owners. While limited, it offers a pay-as-you-need

    structure. 

  • BambooHR: Best for automation lovers: Bamboo’s unique selling point

    is its skillful automation-based HR support to help save you time on your

    menial HR tasks. 

  • ADP: Best for payroll support: ADP’s main focus outside of its PEO

    extension is payroll support.